Homes still bargain for local buyers

As national house prices soar to new highs, Wairarapa is being hailed as a great market for first-time home buyers because of its cheap properties.

The region's median house price jumped more than $30,000 last month to $260,000. However, this was significantly lower than national median of $400,000 - a new record high.

The figures were revealed in the latest Real Estate Institute of New Zealand (REINZ) property report.

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

But while city dwellers struggled with outrageous prices and tense auctions, buyers in Wairarapa and much of provincial New Zealand enjoyed a more leisurely property market run.

Despite the big jump in local prices last month, Masterton-based authorised financial adviser Tim Fairbrother said the region remained one of the most affordable in New Zealand to live.

"In the Wairarapa it's very much a buyers' market. It's easy for them to be getting into a house at this stage."

Compared to the region's median household income, which Mr Fairbrother estimated was between $60-$65,000, a $260,000 house was very affordable, he said.

But purchasing a home in Wairarapa to "move on to the property ladder" was unlikely to bring huge returns for buyers, he warned.

Little growth was expected in the local market and interest prices were forecast to rise.

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."

Auckland's median household income was $77,000, compared to $69,100 in Canterbury.

New Zealand's overall median income was $66,500, according to Statistics NZ.

Ms O'Sullivan said supply shortages in the Auckland and Christchurch property markets had resulted in "double digit price increases and new record prices" in March.

Most regions saw an increase in year-on-year sales volume, with Northland registering the largest jump (43 per cent), followed by Auckland (17 per cent) and Waikato/Bay of Plenty (15 per cent). APNZ