House prices across the country have increased at the fastest rate since 2007.
The latest monthly QV House Price Index showed residential property values for July nationwide have increased 10.1 per cent over the past year.
Nationally, the average value of houses was $527,760, 27.4 per cent above the previous market peak of late 2007.
QV national spokeswoman Andrea Rush said there was a definite “upward swing” in market activity in the upper North Island.
There have also been increased interest from Auckland investors in Wellington and Dunedin.
Sales volumes for parts of Wellington, Christchurch and Dunedin increased increase moderately while other areas of those markets had been flat or slightly down, which was part of the normal seasonal downturn and a result of fewer homes being listed for sale during winter, Rush said.
“Net migration remains at record highs and there are now incentives for new migrants to move to areas outside of Auckland, so this coupled with record low interest rates is likely to see continued upward pressure on home values as we move towards spring,” she said.
Auckland prices are on a sharp upward trajectory, increasing 56.6 per cent and taking it to 33.7 per cent above the 2007 peak. The average value in Auckland in July was $855,672.
Home values in the eastern suburbs of Wellington showed the biggest value increases in the area, lifting 5.3 per cent since July last year. The average value of Wellington homes was $458,250.
Home values in Christchurch continued to plateau, with a 0.5 per cent rise over the past three months, while values in Dunedin rose 2.5 per cent over the past three months.