Otago and Southland mirrored much of the national data with sales numbers down overall and prices up 12% and 5% respectively.
The Clutha district booked a 55.6% gain on median prices against December 2016, up to $210,000 across its 22 sales for the month.
Just three of 16 regions across the country booked median price declines, of 2% or less, in Marlborough, the West Coast and Canterbury, while record gains were booked in the Bay of Plenty, up 20.4%, Waikato, 11.7% and Wellington, 4.7%.
Nelson was the only region to make a gain in sales volumes, up by five sales to 76, according to Real Estate Institute of New Zealand data released yesterday.
ASB economist Kim Mundy said the Reserve Bank’s loan to value (LVR) restrictions and election uncertainty had "sapped a lot of the heat out of the market".
However, several factors were still influencing the market, including the legislative changes to ban foreign buyers, which might have prompted them to buy now, ahead of the changes.
"Over 2018 the housing market will continue to be impacted by legislative changes with softer investor demand expected to be offset, to some degree, by a slight lift in demand from first-home buyers," Ms Mundy said.
REINZ regional commentator in Dunedin Liz Nidd said the city’s market was still "very strong" but showing signs of starting to level off.
December saw the same number of first-time buyers in the market and it could be two months before the relaxation in the loan to value (LVR) restrictions had an impact.
Mrs Nidd said the high LVR restrictions on investors were having an impact on Dunedin’s residential rental market.
REINZ chief executive Bindi Norwell said the national median price gain of $30,000 for December had defied predictions of many commentators that house prices would fall in 2017.
"While the increase will be welcome news to those looking to sell their property, for those first home buyers this will not have been the Christmas present they were hoping for," she said.
However, if the trend of slower price increases continued, there was more chance people saving for a deposit could keep up with the prices. Queenstown Lakes District prices rose almost 13% on a year ago to $937,000, while sales numbers were down just one to 75. REINZ’s regional director in Queenstown, Gail Hudson, said now the election was long gone, buyers and sellers were well aware of proposed government changes to ownership and investing and the impact they would have on decision-making.
"In a positive move, we’ve seen 10% more investors in the market during December when compared to both the previous month and the same time last year," she said.
There had also been an increase in open-home attendees, which suggested consumer confidence had returned to the market, Mrs Hudson said.
Ms Norwell noted 2015 and 2016 had been "very strong years" for the sector and during 2017 the number of properties sold every month had declined against the corresponding month the year before.
"Any comparison was always going to be more moderate beside these outlier years," she said.
