National median house prices continue to steadily tick upward despite an easing in quarterly and month-on-month gains.
Otago annual prices for May climbed 7.9% on a year ago, as did 11 other areas around the country, while Canterbury and the West Coast declined 1.9% and 4.9% respectively.
Real Estate Institute of New Zealand data for May showed four areas with record median gains on a year ago. Northland was up 28.6% to $450,000, Manawatu-Whanganui up 19.6% to $269,000, Nelson-Marlborough up 22.3% to $483,250 and Southland gained 14.1% to $238,000.
Last week, separate Quotable Value data also revealed an easing in quarterly values in most places across the country, including around Otago, where all gains in the 27 towns or city suburbs were less than 9.5%.
Economists agreed yesterday the May data was ''subdued''. ASB economist Kim Mundy said the imbalance in the market had lessened lately, and house prices in many regions had dipped month on month.
''We expect to see activity and price growth slow over the remainder of 2017, especially in Auckland where prices are most stretched,'' she said.
While seasonally adjusted sales data showed activity had lifted strongly during May, Ms Mundy said sales activity ''remains subdued'' when compared with levels in May last year.
''Despite the increase in sales in May, the fact that the market has been cooling recently suggests that buyers are not feeling the urgency they were a year ago,'' she said.
Westpac acting chief economist Michael Gordon also described the market as ''subdued'' for May.
''Sales remain more than 20% below the peak reached in April last year,'' Mr Gordon said.
He believed much of the rise in Auckland property values in recent years was driven by the cost of the land component, which reflected the value of the homes which could be built in the future.
''It may be that the slow pace of building and rising
construction costs are now undermining the perceived development value of the land,'' Mr Gordon said.
Otago's median price on a year ago rose by $27,000,or almost 8%, with Dunedin up 16%, 12% in Central Otago and 10% in Queenstown Lakes.
REINZ regional director for the Queenstown lakes area Gail Hudson said vendors were continuing to achieve good results in the market, although the number of properties coming on to the market had ''stabilised''.
''This remains a very reasonable time for buyers to gain entry to the market in this desirable location, especially at the lower end of the market,'' she said.
