House prices hit new high

Hawke's Bay house prices are rising as the number listed for sale falls. Photo/File

The Hawke's Bay property market continued its strong growth in March with a 32 per cent jump in the number of houses sold in February and a record median price, according to REINZ figures.

The number of houses sold in March is typically greater than in February but the 32 per cent jump, on a seasonally-adjusted basis, is 10 per cent greater than normal. Compared with March 2016 sales volumes were up 14 per cent.

The median house price rose 24 per cent ($74,500) compared with March 2016 to reach a record median of $385,000. On a seasonally-adjusted basis the median price increase of $35,000 in March was 10 per cent compared with February.

REINZ said Hawke's Bay had the second-lowest level of inventory across New Zealand with 10 weeks of supply, a drop of 16 per cent over the past year.

"Whilst volumes and median prices have increased, inventory and new listings remain tight across the region, with Hawke's Bay having the second lowest level of inventory in New Zealand, REINZ CEO Bindi Norwell said.

"There are a number of engaged sellers but choice is limited for buying another property and multiple offers are increasingly common making securing a new property challenging. Interest from Auckland based investors is also rising."

The median number of days to sell fell by seven days in March compared with February, from 36 days 29 days. The March 2016 median was 31 days. The Hawke's Bay 10-year median is 45 days.

Nationally the median house price hit a record $546,000 in March, up 10.3 per cent on the median of $495,000 in March 2016.

The national median price rose $51,000 to $546,000 during March, up 10 per cent from February.