There is doubt the housing market has bounced back, even after a 40 percent jump in sales.

Real Estate Institute figures show 1,128 more properties exchanged hands in February than in the previous month.

ASB economist Jane Turner says sales are still 18 percent down on a year ago. She is yet to see a convincing recovery in the level of house sales.

"Despite the large decline in mortgage rates we haven't seen a real pick up in housing demand. Perhaps house hunters are either waiting for prices to fall further, or perhaps people are just feeling more cautious."

Ms Turner says the current economic uncertainty and reduced job security will weigh on housing investment decisions. She says this will continue to curb interest in the market.

She says the housing market remains oversupplied, which will continue to push prices even lower.