Total residential dwelling sales plummeted last month to their lowest level in nearly two decades, as seen in figures released on Friday by the Real Estate Institute of New Zealand.

Real Estate Institute of New Zealand President Peter McDonald says the total figure of 3,666 dwellings sold in January this year was the lowest monthly total since electronic records began in 1992 and was only the second time the total figure had dipped under 4,000.

He suggested that part of the reason for this was due to uncertainty over what actions the Government intended to take on the recently announced tax working group recommendations.

The hope is that the market will now pick up following the Prime Minister's indicatation that the Government has ruled out proposals to introduce a land tax, comprehensive capital gains tax or new tax on residential investment properties.

Despite lower volumes, the median residential house price rose in 11 out of 12 districts last month (January 2010) compared to the same period the previous year.  The national median of $350,000 was up 7.7 percent on the corresponding figure of $325,000 for January 2009, but was $10,000 down on the median price for December 2009.

The largest gains were Otago, up 17.9 percent to $247,500, followed by Taranaki up 12.5 percent to $300,000 and Canterbury/Westland, also up 12.1 percent to $319,500. Central Otago/Lakes was the only region to experience a drop in median prices, down 10.4 percent to $410,000.

The national median for days to sell in January was 43, 16 fewer days than the corresponding period a year ago but 10 more days than in December 2009. Sales were quickest in Southland at 33 median days and in Auckland where the median days to sell was 36.