The New Zealand housing market mounted a strong rebound in February after a bleak January, with sharply lower interest rates helping lift sales from a 16-year low, a report showed.

The Real Estate Institute of New Zealand said in its monthly report, released Wednesday, that the median house price in the country rose 1.5% to NZ$330,000 ($162,500) in February from NZ$325,000 in January.

Wall Street Journal