"The cheaper houses are sitting around on the market, and are currently a lot harder to sell."
Mr Martin said the number of listings currently on the market had also fallen but it was a good time for the first home buyers to get into the market, with investors currently pushed out because of LVR restrictions.
Ross Stanway, chief executive of Eves and Bayleys Real Estate, said he had noticed a lot of activity in the $800,000 plus sales prices - a swap from three or four months ago where most buyer activity was in the $500,000 to $600,000 range.
Mr Stanway did not think house values would continue to rise at the rate they had been going.
"It is not sustainable or healthy."
Mr Stanway believed the current momentum in the market would continue through the summer.