"Across the rest of the country activity is more modest which is reflected in smaller increases in regional median prices"
- Reinz chief executive Helen O'Sullivan
Property prices in New Zealand rose in February, highlighting the heating property market that is likely to be concerning the central bank, since a supply shortage in some regions is starting to weigh on sales volumes. The national average house price jumped 7.6% last month to $382,000, still below the record $389,000 set in December, while $12,000 higher compared with January, the Real Estate Institute of New Zealand said Tuesday. There were 6,632 houses sold last month, up 7.5% from January, however, in a previous year, from February 2011 to February 2012, sales volumes surged a much more noticeably, by 34.4%. The main constraint on the total number of transactions was the supply shortages in Auckland and Christchurch. Concerns are growing about constantly increasing house costs, as Auckland's population is rapidly growing, while in Christchurch people were looking for new houses as 10,000 homes were destroyed in a series of substantial quakes.
"Across the rest of the country activity is more modest which is reflected in smaller increases in regional median prices," said Reinz chief executive Helen O'Sullivan.
"The continuing reduction in the number of days to sell between this year and last year is also indicative of more buyer pressure in markets across the country."
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