"Inventory remains tight across the country, although Trade Me recently reported that advertised stock levels had lifted year-on-year in our largest city.
"Signs are optimistic for stock to continue to come to market, with agent appraisals already back to the same levels as pre-Christmas. However, it must be noted that there would need to be an above-seasonal lift to match current demand, and for now that seems unlikely."
Goodall said consistent messages from the Government about the need to protect property wealth meant prices would continue to grow.
The reintroduction of loan-to-value ratios (LVRs) next month at 20 per cent for homeowners and 30 per cent for investors would not be enough to take the heat out of the market, he said.
Goodall said this could lead to a further tightening of LVR limits by the Reserve Bank.
He expected the Government to announce some form of housing policy at the end of the month to assist first home buyers and incentivise residential construction.
House prices by region
Christchurch saw the steepest rise in price values of all the main centres and the strongest monthly rate of growth for the city in the past 17 years.
Prices rose by 3.1 per cent to $556,446.
"The quarterly (5.8 per cent) and annual (9.0 per cent) rates of growth are more modest than most other cities, but after years of very little growth in the South Island's largest city, the pronounced lift is significant and shows the pace of capital gains is accelerating," Goodall said.
In contrast to last month's sharp rise, prices in Tauranga saw modest growth of 1.5 per cent.
The Kāpiti Coast recorded the strongest price growth over the month, with values increasing 4.5 per cent to $779,925.
- RNZ
