The recent developments and improving buyer confidence has suggested that the housing market is turning around. With the shortage of homes for sale, prices are expected to remain stong during the traditionally busy spring season.

A fall by 1% was seen in the number of new listings in August, compared with July, specified the website realestate. co. nz, which lists more than 90% of all properties for sale around the country.

Nearly 10,600 new property listings were made on the website during August, a month that saw asking prices for residential properties staying flat.

The chief executive of the real estate website, Alistair Helm talked about a notable level of buyer interest, which, if continued along with listings remaining at low levels, can give a boost to house prices.

But on the other hand, Westpac economists expect only marginal rise in house prices, over the next 18%, and any rally is likely to peter out.