New Zealand house prices edged up 0.2% in February, ending a month of declines, according to property consultancy Cotality. The national median value stood at NZ$806,697 ($473,000), still down 1.2% from a year earlier and more than 17% below the 2022 peak. The modest increase offers little cause for optimism in a market that remains broadly subdued.

Lower interest rates and economic recovery signs have sparked some optimism, but buyers continue to stay on the sidelines. Cotality economist Kelvin Davidson said a sustained pickup would require at least two to three more monthly increases before calling it a trend. The labor market's health remains crucial, with unemployment above 5%.

The Reserve Bank cut rates to 2.25% in November, ending an aggressive easing cycle. While investors expect rates to rise before year-end, the central bank's dovish stance and recent mortgage rate reductions may encourage borrowers. Davidson noted that those with large debts would welcome the central bank's pushback against early rate hike expectations.