Figures released by realestate.co.nz show six of New Zealand’s 19 regions recorded increases in their average asking price both month on month and year on year.
Realestate.co.nz chief executive Sarah Wood said one "standout region" was Southland.
Southland asking prices were up 6.5% year-on-year to $564,291 — a high for the region in the 18 years the industry website has kept records.
Otago asking prices increased 7.4% to $645,788, Ms Wood said.
But the biggest year-on-year increases were found in Taranaki (up 13.1% to $756,271), and Wellington (up 12.9% to $828,531), she said.
The national average asking price remained steady during May, up a marginal 0.8% year on year and up 1.4% month on month.
"We still need something significant to really move the dial in the property market.
"Last week’s OCR drop wasn’t that, but if interest rates drop and we see more investors in the market, we’re likely to see a greater appetite for buying."
In total, nine regions reported a year-on-year drop in asking prices.
Notably West Coast was down 9.8% to $494,855, Gisborne fell 6.3% to $634,604 and Central Otago and the Queenstown Lakes District dropped 6.0% to $1,382,741, she said.
"We’ve had over two years of price stability and there’s no sign of real change just yet.
"Where does this put us in the property cycle? It’s hard to tell, as immigration isn’t supporting a growing market at present, so we continue to remain in a holding pattern, waiting for either demand to rise or economic indicators to shift before we see meaningful movement."
All 19 regions reported month-on-month decreases to stock levels, she said.
Gisborne was down 16.3%, Southland dropped 15.3% and Otago dropped 12.0%.
Total stock sat at 34,415 properties in May, up 5.6% compared with the same time last year, which indicated "continued supply confidence", she said.
But Southland, which dropped 2.7% on the year, was one of five regions that experienced a year-on-year decline in the number of properties on the market.
The others were: Northland (1.3%), Waikato (3.6%), Taranaki (2.9%), and Manawatu-Whanganui (6.1%).
"These regional dips could suggest that some of the higher stock levels we’ve seen over the past year are finally starting to clear," she said.
"It’s important to note, however, that across the board we still aren’t seeing a ‘buyers’ rush’.
"During May, the number of properties that remained on our site for less than 30 days actually decreased compared to April," Ms Wood said.
"Buyers still have the time and choice to do their due diligence, make informed decisions, and purchase the property that’s right for them." — APL
