Wellington, Jan 18 NZPA - The national median house price rose $5000 from November to a December record $360,000 last month, but the real estate industry is concerned that the number of sales for the month failed to top 5000.

Real Estate Institute of New Zealand (REINZ) president Peter McDonald said the appreciating market was "fuelled by a shortage of properties" for sale.

"It is concerning there was less than 5000 residential properties sold in December, but the sale time of 33 days is one of the shortest for the year, which goes to show those properties sold were well sought after," Mr McDonald said today.

He considered house prices had "definitely stabilised and appear to be slightly gaining, which is a positive sign".

The median house price last month was 1.4 percent up on November, and 9.6 percent higher than the year ago level of $328,500.

The REINZ figures show 4957 houses sold in December, 655 more than a year earlier but down 640 on December 2007. In November 6056 houses were sold.

Despite the rise in the median price last month, the REINZ's monthly housing price index fell 0.9 percent.

The index, considered more likely to reflect genuine property price movements, was up 2.8 percent for the three months to December, and rose 6.4 percent from a year earlier. House prices were 3.8 percent below their November 2007 peak.

The index showed Auckland prices up 9.7 percent for the year, Wellington prices up 9.5 percent, Christchurch up 5.8 percent, other South Island suburbs up 8.6 percent, and other North Island suburbs up 4.2 percent.

While house prices are rising, sections are proving less buoyant, falling 3.5 percent in the December month and 1.9 percent lower than a year ago, the index shows.

In Auckland the median house price was unchanged from November at $470,000, with 1646 houses sold last month, compared with 2192 in November.