Whanganui is number six on the list of growth areas for house sales in New Zealand and is experiencing what has become known as the "catch-up effect".
The housing market is similar to other asset markets in the sense that once one area becomes too expensive, buyers look for other
areas to purchase.
When house prices surged in Auckland, buyers moved on to other large urban areas such as Hamilton, Tauranga, Wellington and Dunedin.
After prices in those areas escalated, buyers moved on to "next ring out" which saw inflation begin to surge in places like Rotorua, Whakatane, Carterton, Upper Hutt, Invercargill and Palmerston North.
The growth rate in those areas is still strong but is beginning to stall as most of them now hold median value levels of above $400,000.
