That was up 18% on February 2016, when the median price was $270,000 and compared with $304,000 in January, figures released yesterday by the Real Estate Institute of New Zealand showed.
REINZ regional commentator Liz Nidd said the Otago market remained robust. Demand from investors had reduced but the slack had been taken up by local home buyers, while first-home buyer activity remained steady.
Nationally, median house prices firmed slightly and sales volumes lifted across New Zealand during February, following the holiday period, the report said.
Westpac acting chief economist Michael Gordon said the 5% increase in the Auckland price index confirmed that the 6% drop in January was a ``rogue print''.
That said, prices in Auckland had effectively stalled since the middle of last year and, combined with falling sales and rising inventories of unsold homes, there was a strong sense now that the Auckland market had peaked, Mr Gordon said.
ASB economist Kim Mundy expected house price growth to be muted over 2017 but strong population growth, combined with sluggish housing construction, would continue to provide a floor to prices.
Otago also had the fewest number of days to sell last month at 27 days. Over the past 10 years, the average number of days to sell in the region in February was 40.
Prices rose 18% in North Otago and 13% in Dunedin but fell 6% in South Otago, compared with February last year.
Sales across the region increased 5% compared with January but fell 9% compared with February last year, although there was a 13% lift in North Otago.
Sales were up 57% in Queenstown and 42% in Central Otago compared with January. Sales volumes fell 9% compared with February last year, down 14% in Central but up 2% in Queenstown.
The median price across the region rose $168,889 (up 30%) compared with February 2016. Prices rose 21% in Central and 9% in Queenstown.
REINZ regional director Gail Hudson said there were fewer first-home buyers in the market, a flow-on from the LVR (loan to value ratio) restrictions on lending which had put some buyers out of the market for the foreseeable future.
Investors were also being more cautious and offers were generally below vendor expectations. Further, there had been a slowdown in the auction market and the pass-in rate was rising, she said.
The national median price increased to $495,000, up by $5000 from January. The number of sales for February was 6253, an increase of 45% on January, although on a seasonally adjusted basis, sales fell 8.9% compared with February last year.
Sales volumes in the Auckland region rose 33% compared with January. Compared with February last year, the median price rose $50,000, although it was down by $5000 compared with January.
REINZ chief executive Bindi Norwell said there was a ``mixed picture across New Zealand''.
``We hear anecdotally that LVRs are having an effect and banks are reducing lending, becoming more selective about who they lend to, what properties they will lend on and the terms.
``Recent media has noted the lower level of cash incentives being offered by banks, and this ties in with the feedback agents across the country are hearing from their clients,'' she said.
