The Real Estate Institute of New Zealand house price index recorded a 0.2% month-on-month increase in May in seasonally adjusted terms, alternating between small increases and falls over the past six months, showing a steady overall trend, ANZ said in a report on Monday.
The housing data is a touch stronger than expected and indicates potential upside risk to ANZ's forecast of a 2% price decline over the year, while broader housing market indicators remain weak.
Sales volumes fell 2.2% month on month in May, the third monthly fall in a row, indicating that buyers remain cautious.
Meanwhile, median days to sell rose to 46 in May from 45 the previous month as buyers consider their options.
House prices are expected to remain stagnant in the near future with rising interest rates and a subdued starting point, per the report.