The median price for real estate sold in Otago last month rose by $4500, or 1.9%, compared with February. Prices increased in North and South Otago but fell in Dunedin.
Real Estate Institute figures show the Otago median price in March was $247,500, up from $243,000 in February but only slightly above the $246,750 recorded in March last year.
In Dunedin, the median price fell to $265,000 from $268,000 in February, but remained above the $262,500 reported in March last year. In North Otago, the median price was $196,000, up from $171,500 in February but down from $220,000 in March last year. South Otago followed the same pattern, with the price last month of $160,000 up from $134,250 in February but down from $180,000 in March last year.
Sales in the region rose more than 17% compared with February, with strong rises in Dunedin and South Otago.
Regional institute director Liz Nidd said the Otago market continued to improve, with properties taking fewer days to sell and a solid increase in sales. Well-priced properties were selling quickly under multiple offers with buyers continuing to be active.
The trend in the median price and number of days to sell continued to improve. However, the trend in sales remained flat, she said.
In the Central Otago Lakes district, sales fell by 3.4% compared with March 2012, as sales were up almost 25% in Queenstown but falling in Central Otago. Compared with February, sales fell by nearly 11%, with flat sales in Queenstown and a 20% fall in Central.
The median price across the region increased by $80,000 (20.3%) compared with March last year, almost all of the increase occurring in Queenstown, Mrs Nidd said.
The number of days to sell eased noticeably, from 70 in February to 47 in March.
Compared with March last year, the number of days to sell eased by 10 days. In the past 10 years, the median number of days to sell during March had averaged 56 days, she said.
Overall, Auckland and Canterbury-Westland drove an 8.1%, or $30,000, increase in the national median price to a new high of $400,000 in March.
The Auckland median price was $562,000 and the Canterbury-Westland price was $359,000.
ASB economist Jane Turner said the Reserve Bank had become more wary of the increase in house prices and lift in credit demand and the risks those presented to monetary policy and financial stability objectives.
Low interest rates and easy access to credit were contributing to stronger demand.
There were indications of a readiness by the Reserve Bank to try to ease housing market pressures through raising the official cash rate from the present 2.5%.
''Over the coming year, the Reserve Bank will have to balance the tension between housing market pressures and the impact of the elevated New Zealand dollar on the New Zealand economy. We continue to expect the Reserve Bank will lift the OCR in March next year,'' she said.
