Property shortage pushes prices higher

Property shortages are continuing to push up property prices, and sales have reached near record levels in some areas.

Figures from the Real Estate Institute of New Zealand released today show the rate of growth in the industry last month pushed up the national median house price by $12,000 to $382,000.

The figure is $7000 below the record set last December.

Last month 6632 houses sold; 464 more than the same time last year.

Housing shortages in Auckland and Christchurch have resulted in double digit price increases and a median selling time of about 33 days, said REINZ chief executive Helen O'Sullivan.

During the past 10 years, the median time to sell has been about 43 days.

"Across the rest of the country activity is more modest, which is reflected in smaller increases in regional median prices."

"The continuing reduction in the number of days to sell between this year and last year is also indicative of more buyer pressure in markets across the country," she said.

Across the rest of the country activity is more modest which is reflected in smaller increases in regional median prices.

Northland recorded the biggest jump in media house price (18 percent), followed by Auckland (14 percent), and Central Otago Lakes (14 percent).

The number of houses sold was in line with seasonal trends.

Canterbury/Westland recorded a new record high median of $355,000.

Almost every region recorded increases in sales volume compared to February last year, leading with Northland (29 percent), followed by Auckland (16 percent) and Wellington (12 percent).

Of the 1238 properties sold by auction last month, 72 percent were in Auckland.

While the residential market remains active, the number of sales is starting to slow, said Ms O'Sullivan.