Residential property sales last month were closer to levels from a year earlier after reaching their lowest level in nearly two decades in January, while the February nationwide median price remained steady, Real Estate Institute of New Zealand (REINZ) figure show.

The February total of 5029 dwellings sold was well up on the January figure of 3666, but a little down from the 5228 sales in February 2009.

The median sales price of $350,000 last month was the same as in January, and up from $330,000 a year earlier, figures published today show.

REINZ president Peter McDonald said agents reported an air of caution among buyers, most of whom were genuine home seekers as opposed to investors. That was reflected in the rise to 46 in the median days taken to sell a listed dwelling, he said.

In January a median 43 days were needed to sell, while in February 2009, 62 days were needed and in February 2008 it was 50 days.

Mr McDonald said recent government discussions of potential tax changes had halted inquiries from investors who usually bought at the lower end of the price range. Most interest now was in the $400,000 to $600,000 bracket.

"We are seeing a good supply of listings and high levels of inquiry so we expect the market to remain reasonably balanced and maybe strengthen as we move into the autumn months."

The median price rose in 10 out of 12 districts in February compared to a year earlier. The largest gains were in Taranaki, up 9.6 percent to $285,900, followed by Auckland up 7.6 percent to $453,500. After topping the list of percentage increases in January, Otago was the only region to experience a drop in median prices, down 0.4 percent to $222,000.

The REINZ monthly housing price index rose 0.4 percent last month, but declined 1.2 percent in the three months to February.

Compared to 12 months earlier, the index was up 5.5 percent, while housing prices were 4.9 percent below the November 2007 peak.

The index looks at an average of sale prices for common groups. In Wellington the index was up 8.2 percent in February from a year earlier, in Auckland it was up 7.2 percent, in Christchurch up 4.3 percent, other North Island suburbs were up 5.9 percent, and other South Island suburbs were up 2.5 percent.

A section price index was down 11.3 percent in the February month, and 3.4 percent lower than a year earlier.