The latest monthly QV House Price Index has seen house values continue to rise around the region.

Napier values rose 17 per cent year on year and 4.1per cent over the past three months.

The average value in the city is now $478,059 and values are now 40.5 per cent above the previous peak of 2007.

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Moderate listings, price climb forecast in Hawke's Bay homes market


The Hastings market also continues to rise, up 17.6 per cent year on year and 3.6 per cent over the past three months with the market 41.6 per cent higher than 2007.

The average value there is now $441,307.

"The latest figures are a reflection of what our team have been experiencing at the front line," Harcourts general manager James Cooper said.

"We're certainly seeing a spring/summer surge on top of what is already strong buyer demand. Hawke's Bay is bucking the trend when compared to some other areas of New Zealand."

He said key factors driving the market are strong local demand, combined with buyers from outside the region.

"This external pressure on prices is no surprise when you consider the strong pull factors that Hawke's Bay has to offer which makes the region an attractive area to work, live and play."

Although, Property Brokers regional director for Hawke's Bay, Paul Whitaker, said the figures show the region is still "playing catch-up to Auckland".

"People looking at cashing in in other areas that have gone higher are looking around for a destination and choosing Hawke's Bay, and that's putting more pressure on the housing market which is in turn affecting prices."

They are expecting to see an easing in the winter.

"I do think we've seen a lot more supply coming on and a lot more land about to come on."

He said Property Brokers was seeing one in eight sales made to an Auckland buyer.

Tremains owner Simon Tremain said the QV figures normally just reconfirm what the Real Estate Institute of New Zealand (REINZ) figures say.

"It's good to see the QV figures backing up what the markets delivered in the last 12 to 24 months and as far as what we are actually seeing in the market at the moment; we are in that rush to Christmas, we have got a lot of out-of-town buyers and prices are still holding up extremely well."

Similarly he noted that the market is full of buyers from out of town, particularly from Auckland, because the region has become an alternative to Tauranga.

QV National spokeswoman Andrea Rush said, "It appears the spring/summer upturn has finally arrived in the housing market.

"Nationwide value growth has surged 3.6 per cent over the past three months led by stronger growth in Wellington, Dunedin and many other regional centres around the country."

"The easing in LVR restrictions in January and retail banks lending criteria is likely to help improve activity and demand in the housing market as we move through the summer months but it's possible the usual slow-down over the Christmas period may mean we don't see the full impact of this until February and March next year."