North's median house price dips in flat market

As national house prices soar to new highs, Northland's property market remains relatively flat - with median house prices dropping $15,000 in the last year.

The region's median house price dropped to $300,000 last month, down from $315,000 in March 2012, the latest Real Estate Institute of New Zealand (REINZ) property report revealed.

This was significantly lower than the national median of $400,000 - a record high.

Soaring prices have been blamed on skyrocketing house prices in Auckland and Christchurch. In Auckland, the median house price reached $562,000, and Canterbury/Westland recorded $359,000 - regional peaks.

Bayley's Northland director Mark Macky said confidence in the local market had improved, despite the flat prices.

The REINZ report said Northland registered the largest increase in year-on-year sales, from 145 in March 2012 to 207 last month - which reflected greater confidence in the market, Mr Macky said.

The Auckland "ripple effect" had also impacted the Northland market. Coastal properties had attracted a lot of interest from Auckland house hunters, he said.

"The closer the market ... is to Auckland, the more confidence there is."

Despite this, "things in the Far North are still pretty tough, but the ripple is definitely coming North".

Mr Macky said Northland's urban market was predominantly attracting local buyers.

REINZ chief executive Helen O'Sullivan said the national median price jumped 8.1 per cent or $30,000 in the year to March.

Ninety per cent of this increase was from price movements in Auckland and Canterbury/Westland.

"Together these two regions represent 52 per cent of national house sales, indicating that the remaining 10 per cent of the increase came from the remaining 10 regions, which cover 84 per cent of New Zealand geographically," Ms O'Sullivan said.

Auckland's median household income was $77,000, compared to $69,100 in Canterbury. New Zealand's overall median income was $66,500, Stats NZ said.

Supply shortages in Auckland and Christchurch had resulted in double-digit price increases and record prices, in March, Ms O'Sullivan said.

In most regions, year-on-year sales volume increased, Northland registering the largest jump (43 per cent), Auckland 17 per cent and Waikato/Bay of Plenty 15 per cent.