National housing asking prices have topped a record $570,000, and Auckland and the Central Otago-Lakes region are pushing well beyond $800,000.
Given the housing supply shortages from lack of listings, continued high prices and high buyer demand, the sector is "definitely a sellers' market'', realestate.co.nz spokeswoman Vanessa Taylor said yesterday.
Data for May showed increased real estate activity across the North and South Islands, she said.
"It's a classic supply-and-demand situation and, right now, it's definitely a sellers' market,'' she said in a statement.
In the South Island, the Central Otago-Lakes region and Nelson were notable standouts.
Prices there were up from April to May 8.9% to $819,778 and 7.1% to $510,709 respectively, while in the North Island, Wellington gained 1.4% to $513,518 and Auckland was up 2.1% to $879,730.
In May, the Central Otago-Lakes area topped New Zealand in terms of percentage average asking price gain at 17.2%, compared with May last year, but the region also recorded the largest drop in new property listings, down 32.9%, with 155 new listings.
ASB economist Kim Mundy said the historically low levels of inventory was keeping the housing market tight. Most regions showed falling inventories, from limited new listings and sales activity picking up.
"This combination is likely to keep the pressure on house prices around New Zealand,'' she said.
Ms Taylor said while the national average asking price for a house hit a record high, the housing stock numbers were at record low for May.
"In this environment, if no new listings were to come on to the market nationally, and all the existing properties sold, theoretically there would be no properties for sale in New Zealand within 12 weeks,'' Ms Taylor said.
Nationally new listings for May were down 7.1% to 9646.
While new property listings in Central Otago-Lakes declined 32.9% to 155 houses, in Otago listings rose 1% to 315.
The long-term average, over eight years, to sell all properties in Central Otago-Lakes was 79 weeks. For May it was just 15 weeks. For Otago the long-term was 26 weeks, but just 11 weeks for May.
