North house prices on rise

There has been an increase in houses sold in Northland this year.

Now is a good time for househunters in Northland, says a real estate expert.

According to data released by the Real Estate Institute of New Zealand (REINZ), the median price for a property in Northland was $333,750 - a 7.7 per cent increase from January 2014 where it was $310,000.

The January 2015 median price also rose by 11.3 per cent compared with December 2014.

There was also an increase in the number of houses sold in the region during the first month of the year, with 146 houses sold in January - 3.5 per cent more than January 2014.

Sales in January were down in comparison to December 2014, when there were 173 sales.

The median property price in Whangarei city was $280,000, in Whangarei country it was $410,000 while in Kerikeri it was $510,000.

Bayleys Real Estate in Northland director Mark Macky said it was a good time for house buying in the region.

"The difference in price between the Auckland market and the Northland market has never been greater. Now is a good time to buy because I think prices will start to change in the next few months."

Macky said the January market had been quite slow but that was expected.

"The market in Northland has been subdued ... the ripple effect out of Auckland, we are starting to see in Northland now but it has taken a while," he said.

"The activity we are seeing and the inquiry we are seeing is the strongest it has been in seven years but we are still a long way behind the dynamic we are seeing in the Auckland market."

Mr Macky said the supply and demand dynamic in Northland was starting to shift.

"The market is in the midst of recovery. Prices haven't changed much in Northland and we are starting to see the excess supply of listings that have been on the market and are now being soaked up so the supply and demand equation is changing."

Nationally, housing sales activity last month dropped by almost one third from December 2014. NZME.