House prices here have hit an all-time high, with prices in Napier shooting up $95,000 in a year.

Latest data from the Real Estate Institute show the median house price in Hawke's Bay is now $438,000.

"The median house price in the Hawke's Bay region came to a record high in January, with
an 18.5 percent increase compared to same time last year", REINZ chief executive Bindi Norwell said.

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"Interest is mainly from owner/occupiers, 'doer uppers' and for higher priced properties. The number of attendees at open homes was higher compared to previous months and the number of investors has gone down compared to the same period last year.

"It is hard to predict if the median house price will stay at this level, but at this point there is no indication of any changes in the coming months."

Closer inspection of the region's suburbs showed prices had risen by more than 20 percent in both Napier and Hastings but had fallen by about $5000 in Central Hawke's Bay, where the median house price is now $245,000."

In Napier, prices shot up by $95,000 compared the same month last year, while Hastings prices were not far behind - up $77,250.

Tremains managing director Simon Tremain said there was no sign the market was slowing down.

"The median price now is an all-time record - up from $420,000, which was set in November last year.

"The market is still surging, there are a lot of buyers out there. There's not as many sales - volumes are down a little bit. It's not a matter of fewer buyers, it's more a matter of buyers taking time to adjust to the price levels.

"It's still very much a sellers market, and I can't see anything changing or slowing down for this year."


Harcourts Hawke's Bay general manager James Cooper said Hawke's Bay was at the forefront of continued strong regional property price growth.

"This is just a reflection of a number of factors making the Bay an attractive place to work, live and play. These include good, ongoing enquiry from buyers from outside the region, particularly Auckland, and a dynamic Hawke's Bay Economy.

"On a local level, our team is still experiencing large numbers of buyers at open homes. This increased enquiry is leading to a number of properties attracting multiple offers, which in turn helps to drive premium prices.

"Agents are also talking with a number of buyers considering downsizing to not only free up capital but to also free up leisure time in order to enjoy all that Hawke's Bay has to offer."

Nationally, the median house price for New Zealand increased by 7.1 percent to $520,000, up from $485,500 in January 2017.