Regions Home Prices Hit Record High

House prices outside of New Zealand’s three largest cities have hit “the half-a-million-dollar mark for the first time”, Trade Me says.

The average asking price for a home in the regions climbed 6.8 per cent on last year to hit $502,950, the websites Property Price Index has found.

“While the dip in the Auckland housing market has been making headlines, our property market is still very strong outside the overheated market in the Super City,” Trade Me head of property Nigel Jeffries said on Wednesday.

Strong double-digit growth in Hawke’s Bay, Whanganui and Marlborough had driven the increase in average prices, he said.

When the main cities of Auckland, Wellington and Christchurch were included, average house prices rose 1.7 per cent in March comparted to a month earlier to hit $636,650.

In Auckland, the average asking price stalled for a second consecutive month in March, falling 0.7 per cent on last year to $912,500.

Property prices in Wellington climbed another 1.7 per higher than in February and 5.8 per higher than last year to reach a new record of $571,850.

However, “while prices in the provinces have been running hot, buyer demand across New Zealand appears to be cooling off”, Mr Jeffries said.

“The average number of views on property listings was down 1.6 per cent on March 2017, and this drop in demand may be an indication that buyers are retreating as growing prices push them out of the market.”