New Zealand house prices rose for a fourth month in August, signaling the property market is recovering and may help the economy emerge from a recession.

Prices rose 0.7% from July and have gained 1.9% from a low in April, Quotable Value New Zealand, the government valuation agency, said in an e-mailed report.

Rising consumer confidence, housing demand and immigration are helping New Zealand recover from its worst recession in three decades. Finance Minister Bill English said last week he expects the economy will start growing in the second half of this year.