Otago median house prices for July surged more than 8% to hit a record $266,800 as sales volumes for the month rose by 16.5%.
In part, the Real Estate Institute of New Zealand is anecdotally crediting the buoyant prices and volumes to first-home buyers moving quickly to buy houses before the Reserve Bank imposes lending restrictions on low-deposit buyers.
In the separate Central Otago Lakes region, overall sales were up almost 20% and median prices gained 16.5% to $480,000; with Queenstown booking a more than 50% volume gain, from 32 homes a year ago to 49, at a median $525,000.
While all 12 regions in the REINZ data for July had increased median prices on a year ago, Otago's percentage rise of 8.9%, or $21,800, was well above the national rise of 6.6%, or $24,000, at $385,000.
Auckland and Canterbury-Westland accounted for almost 74% of the the increased median price, from a year ago.
REINZ spokeswoman Liz Nidd said Dunedin sales rose from 166 a year ago to 177, including a sales boost in the above $500,000 ranges. Overall sales were up from $46.8 million a year ago to $55.1 million.
Ms Nidd said listing numbers in Dunedin had decreased as sales exceeded new listings.
The REINZ commentary said some potential vendors in Otago were reluctant to sell, as they were concerned about repurchasing in a rising market.
ASB senior economist Jane Turner said while housing demand had steadily increased during the past year, the market remained tight and supply-constrained. Increased new listings in July were responsible for the sales turnover boost.
''Over the coming year, a continued improvement in labour market conditions and net migration will continue to underpin housing demand,'' she said.
An increase in new housing construction was required in Auckland and Christchurch to alleviate the supply and demand imbalance.
National July sales
• 6777 properties sold in July 2013
• House sales over $1 million up 5.3% to 361.
• $600,000-$999,999 up 17.1% to 1161 sales.
• $400,000-$599,999 up 25% to 1694.
• Under $400,000, up 52.5% to 3561.
• Total value residential sales, including sections, from $2.52 billion a year ago to $3.31 billion.
• For the 12 months ended July 2013, residential sales were $38.04 billion.
Source: REINZ
