Otago's median house price rose $22,000 in November to a record of $300,000, up 8% compared with November last year.
Otago and Southland had the shortest number of days to sell in November at 25, followed by Manawatu/Wanganui and Wellington at 26 days. Nationally, the number of days to sell remained steady at 32.
Real Estate Institute of New Zealand (Reinz) figures released yesterdayshowed 10 of 12 regions hit record high median sale prices in November, and the national median price also reached a record of $520,000. All but two regions showed double-digit percentage growth.
Only Auckland and Central Otago Lakes did not post record median prices. Auckland eased back from a record in October and Central Otago Lakes median continued to ease following its rapid price increase earlier in the year.
Reinz Otago regional commentator Liz Nidd said both first-home buyers and investors were active in the market.
The number of new listings had increased but the activity in the market meant the impact on inventory had been muted. The number of days to sell at 25 was near the lowest level for more than five years.
Prices rose by 11% in North Otago and 7% in Dunedin, but fell 19% in South Otago.
Compared with October figures, the median price rose by $5000 (2%) in Otago. Prices rose 2% in North Otago but fell 4% in Dunedin and 20% in South Otago.
Sales across the region rose 25% compared with in October. Sales rose 32% in Dunedin, 22% in North Otago but fell 18% in South Otago. Compared with November 2015, sales rose 8% in Otago. Dunedin sales were up 14% but fell 3% in North Otago and 22% in South Otago.
On a seasonally adjusted basis, sales rose 4% compared with October.
``The number of properties for sale remains tight, with just over 12 weeks of supply available,'' Mrs Nidd said.
The Central Otago Lakes median price was $635,500 in November, down from the $659,000 median in October but still well ahead of the $482,000 median in November last year. The Central Otago median was $503,300 in November, 100 properties were sold with an average of 32 days to sell.
In Queenstown, the median was $923,250 and 46 properties were sold in an average of 35 days.
The Invercargill market was the hottest in the country, with 123 properties properties sold in an average of 22 days. The median price was flat compared with October at $228,000 but well up from the $197,500 median in November last year.
Te Anau had the highest median in Southland, at $297,000, and Bluff the lowest at $140,000.
Reinz spokesman Bryan Thomson said between November 2015 and November this year, the number of homes sold for more than $1 million rose by 32% to 1106 homes to equal nearly 15% of all dwellings sold.
The number of dwellings sold under $600,000 had fallen by 977 in the same period compared with a fall of 472 for all dwellings.
Westpac senior economist Satish Ranchhod said the latest figures suggested the housing market was steadying after the impact of the latest loan-to-value (LVR) restrictions. Sales were close to flat in seasonally-adjusted terms while the stratified price index recorded a ``solid'' 0.9% gain for the month.
``These results are in line with what our `investment value' analytical framework suggests about the impact of lending restrictions. They limit who can buy a house, leading to lower turnover. But they have little bearing on bidders' willingness to pay, which is determined by factors such as mortgage rates, rental yields and the tax treatment of property.''
Mortgage rates had been creeping higher since November, ending a steady downward trend over the last couple of years, he said.
The turnaround in borrowing costs could have a more meaningful impact on house prices than the LVR restrictions.
Westpac recently revised down its house price growth forecast for next year to just 5%, Mr Ranchhod said.
