House prices up despite city dip

Northland house price edged higher in the past year despite median prices dipping in Whangarei, new figures reveal.

Latest statistics from the Real Estate Institute (REINZ) recorded a median house price of $300,000 for Northland during May, up from $280,000 a year earlier.

In Kerikeri and Whangarei country, the median house value increased significantly over the period- up $29,500 from $400,000 in Kerikeri, and up $70,000 from $310,000 in Whangarei country.

In Whangarei city, however- the region's largest property market - the median price declined $22,500 to $255,000 in the year to May.

Whangarei LJ Hooker chief executive Paul Beazley said the dip in Whangarei city prices bucked the trend.

"It's definitely been above the same period of last year right through the first four months of this year. And we really haven't seen a drop off in terms of inquiries ... which remain strong compared to the last three years," he said.

The lower median price probably reflected an increase in three-bedroom properties being sold around the mid $200,000 price range, Mr Beazley said.

Nationally, house sales in May reached their best levels for the month since 2007.

Auckland and Canterbury's buoyant property markets continued to lead the way - with both regions posting record high median sales prices.

Auckland hit $565,000 for the month and the Canterbury/Westland region registered $360,000.

Reinz chief executive Helen O'Sullivan said the national median house price rose $23,000 in the 12 months to May to reach $392,000 - $8000 below the record median set in March.

And while price gains in other centres have been modest, sales in the Nelson/Marlborough region also set a new median high of $353,625, figures showed.

Auckland's property market - which Ms O'Sullivan said was "driving up house prices at both the regional and national level" - and strong demand in Canterbury continues to cause headaches for financial policy makers.

The Reserve Bank's monetary policy statement, issued last week stated Kiwi house prices had increased nationally by 9 per cent between the April 2012 and 2013 quarters.

This was driven by homes in Christchurch and Auckland, which rose in price by 11 and 14 per cent, respectively.

"Outside these areas, prices rose by an average of around 4 per cent, although there is considerable variation among districts."

Despite this, the central bank confirmed interest rates were likely to remain on hold for the rest of the year - but signalled it would hike rates if rising house prices spurred a property bubble.

A breakdown of the 7714 properties sold for the month, showed about half were valued under $400,000. Just over a quarter sold for between $400,000 and $599,999 and about 18 per cent of sales were between $600,000 and $999,999. APNZ