Property market focus continues to be on soaring values in Auckland and Christchurch, with the latest QV data for the three months ended May showing values increasing fastest in both those cities.
The QV monthly house price report shows nationwide house values increased 1.7% over the three months to May, with prices up 7.1% on a year ago and now 5% above the 2007 peak.
However, the national average disguises the regional growth which, in many cases, is not so robust as that in New Zealand's two largest cities.
QV research director Jonno Ingerson said the rest of the main centres were also increasing in value, although at a much more modest rate which reflected a general increase in consumer confidence.
Values were more variable in rural towns, in response to local economic conditions.
''Given that the current increase in values in Auckland and Christchurch is largely driven by strong demand and short supply, values are likely to continue to increase in the coming months,'' Mr Ingerson said.
In the South, there was a mixture of results from the latest data with Dunedin slowing slightly, and recording only a 0.2% increase in the past three months. Values are 4.2% above last year.
QV valuer Tim Gibson said Dunedin was starting to see the effect of the normal winter slow-down. While the beginning of the period was a good one, especially for the lower end of the market, the latter half saw a noticeable drop-off in demand.
QV figures showed Dunedin's average current value for property was $284,346, down 0.8% on the market peak of 2007.
The Dunedin central and north average value was $292,031, peninsula and coastal was $257,928, south was $277,305 and Taieri was $293,931. South had the largest quarterly value rise of 1.1% to be 6.7% ahead of May last year.
Waitaki's average current value was $220,479, 4% ahead for the three months and 4.9% for the year. Central Otago's value was $298,162, 1.8% ahead for both the quarter and year.
In Queenstown Lakes, the average value rose 1.9% in the quarter to reach $633,197, 4.5% ahead of last year.
Clutha's average value fell 0.4% in the quarter to $163,758 and Gore's value fell 0.2% in the quarter to $183,355.
In Auckland, average quarterly increases ranged from 4.8% in the south to 2.1% in the east. Annual increases soared in the South by 15.6%, against a low of 11.1% in the east.
Overall, Auckland prices increased 3.5% in the May quarter to be up 12.7% on a year ago and 17% on the 2007 peak. The Auckland city current average value was $751,951 in May.
Christchurch's quarterly values rose by 3% and 10% in the year. Banks Peninsula had its values increase by 6.3% in the quarter and 16.6% annually.
At a national level, prices were still high across Auckland, with a somewhat desperate feel among buyers searching for good properties at reasonable prices, QV operations manager Kerry Stewart said.
ASB economist Jane Turner said house price increases had broadened beyond the supply-constrained areas over the past year, reflecting an increase in household confidence and buying demand.
''With the pace of house price increases outside of Auckland and Canterbury - between 3% and 5% depending on the area - it is becoming increasingly appropriate for the Reserve Bank to lift interest rates from very strong levels in order to keep demand in check.''
Recent communications from the Reserve Bank indicated it was strongly considering placing restrictions around growth in high loan-to-value lending.
While blocking access to credit might choke off demand in some instances, it was unlikely to have much impact on demand for prospective buyers in strong capital positions - particularly while interest rates remained at very low levels, Ms Turner said.
ASB economists continued to forecast the official cash rate rising from its current low of 2.5% in March next year.
