The New Zealand residential property market recovery is looking a little unconvincing in a report by Mike Pero Mortgages.

The Mike Pero Mortgages-Infometrics Property Cycle Indicator (PCI) fell slightly to positive 5.23 in January, from 6.67 in December.

"Although the nationwide PCI was still positive in January 2010, the steadying of the housing market has dropped off."

Sales volumes in January were 1.1 percent lower than a year earlier, the first decline in activity since February last year, said Mike Pero Mortgages chief executive Shaun Riley.

The median house price dropped $10,000 from the previous month, but was still up 7.7 percent from January 2009.

The average number of days to sell property showed its typical seasonal increase in January, up 10 days from December 2009 to 43 days. This was still 16 days fewer than in January last year.

Northland was the only North Island region where the housing market gained momentum in January, according to the PCI.

In the South Island, the Central Otago Lakes region is back in positive territory after two-and-a-half years.

Rents continued their gradual strengthening in January, up 0.4 per cent from a year earlier.

During January floating mortgage rates held steady at 6.0 percent for the fourth consecutive month. Fixed mortgage rates were also largely unchanged.