Latest figures from the Real Estate Institute of New Zealand show New Zealand’s median house price increased from $327,000 to $335,000 between January and February 2007.

• House prices are 13.6 percent higher than one year ago when New Zealand’s median house price was $295,000
• Sales of properties increased from 7,930 in February 2006 to 9,357 in February 2007.

REINZ National Vice President Mr Mike Elford commented:

“The market in February was even stronger than first thought and clearly this is not the news the Reserve Bank was wanting to hear, but it’s great for homeowners in terms of growing the equity in their primary savings vehicle which is their own home.”

“The increase in (interest rates) last week obviously came too late to affect the market, but it will be extremely interesting to see the March figures. Our view is it will have little effect – since most mortgages are on fixed terms – which will leave the Reserve Bank to contemplate other measures to dampen confidence in the residential housing market.”

Ten out of the New Zealand’s twelve regions reported price rises in February and two reported falls.

House Price Changes