Sales in the New Zealand housing market have risen to 5,316 in December 2011, an increase of 20.1% compared to December 2010, which is the best transaction figure for the month of December since 2007, according to the Real Estate Institute of New Zealand (REINZ).

Although the national median house price lowered slightly by 3.4% (NZ$12,500) down to NZ$355,000 from November 2011, it is up by 0.9% (NZ$3,000) compared to December 2010.

Helen O’Sullivan, chief executive at REINZ, said: “December has been a strong month for real estate sales in New Zealand, with this being the strongest level of transaction figures in December since 2007, and Auckland having its strongest December since 2006. Across the country sales volume is up by over 20% compared to December 2010 with some regions such as Manawatu/Wanganui and Taranaki reporting increases of more than 40%.

“While the number of transactions is rising, prices have eased back from November’s record highs, with some exceptions in parts of Auckland and the Canterbury/Westland region.”

For the month of December, Central Otago Lakes recorded the highest rise in prices at 7.4%, followed by Taranaki at 4.6% and Wellington at only 1%. When compared with December 2010 Central Otago Lakes saw an increase of 8.7%, Canterbury/Westland 6.6% and Auckland 6.5%.

Central Otago Lakes was the only region not to register a decline in sales volumes for December 2011 when compared with the previous month, however on a seasonally adjusted basis the national total was up 5.6% and all but one region recorded an increase in sales volumes.

Auckland recorded its strongest December sales volumes since 2006, with the six regions of Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Nelson/Marlborough, Canterbury/Westland and Otago all recording their strongest December sales since 2007. Hawkes Bay and Wellington were the only two regions which had lower sales volumes than December 2010.