Wairarapa house values leap $28k

The latest Real Estate Institute of New Zealand (REINZ) figures show the Wairarapa median house price rose more than 11 per cent in the year to December.

Wairarapa house prices jumped more than $28,000 in the past year, new figures show.

Latest Real Estate Institute of New Zealand (REINZ) figures show the median house price in Wairarapa jumped more than 11 per cent in the year to December, to $276,500.

December house sales also edged higher, from 49 to 54 year-on-year, with the median price surging nearly $50,000 from November to December.

Andy Scott, principal of Professionals Patrick & Scott in Wairarapa, said an increase in house prices of more than 10 per cent was consistent with what he had seen throughout the year.

Sales at the higher end had probably dragged the median up. "We sold quite a substantial property in Masterton for just under $1 million [last year]. There was nothing sold like [during 2012]," he said.

There was more confidence in the market and the number of sales had also increased during the year.

But even so, December had been a quiet month.

"Whether that's the impact of the LVR [loan-to-value ratio] restrictions - a hangover from that - I don't know."

The national median house price hit an all-time high in December of $427,000, a $2000 increase on the previous month.

Record highs were also recorded in Waikato, Bay of Plenty, Manawatu/Wanganui, Taranaki, Nelson/Marlborough and Canterbury/Westland.

However, the number of houses sold in New Zealand fell last month.

House sales were down 18.3 per cent from November and 1.1 per cent compared to December last year.

The number of sales below $400,000 dipped 14.4 per cent, which could reflect the Reserve Bank's home loan restrictions, which took effect from October, REINZ said.

REINZ chief executive Helen O'Sullivan said: "Five regions posted new record high median prices, with some regions, such as Manawatu/Wanganui, Taranaki and Northland, seeing sharp increases that are unexpected given the general trend in prices in these regions."

She added that prices in some regions might have risen because of fewer sales in the lower price bracket.

"The effect is not seen across the board, however, with Auckland reporting a $20,000 fall in the median price from November 2013." Meanwhile, banks are trying to lure customers with special deals ahead of an expected hike in interest rates.

Kiwibank has launched the latest shot in this season's "mortgage wars", promising $2014 to customers who transfer their home loan and everyday banking to it.

This comes ahead of expected interest rate hikes, predicted for March this year. APNZ