The Real Estate Institute says house sales and values slipped in December, but market activity was better than earlier in 2010.
Its latest figures show 4,397 were sold during December, which was more than in August, September and October, but fewer than in November.
The national median house price fell to $352,000 from $360,000 in November. The average price, however, was higher than it had been between July and October.
Real Estate Institute chief executive Helen O'Sullivan says market activity picked from levels experienced earlier in 2010 which bodes well for sales this year.
Ms O'Sullivan says the institute's members are reporting increased market activity.