New Zealand's average home value has topped $600,000, with valuers reporting of panic buying and lack of due diligence.
The latest monthly statistics from the QV House Price Index show that values nationwide have increased by 14.1 percent over the past year, and 6.1 percent in the past three months, pushing the average value to $602,434.
QV national spokesperson Andrea Rush says: "Values continue to rise rapidly in many parts of New Zealand buoyed by low interest rates, strong investor activity and high net migration."
Auckland's average house price is tantalisingly close to the million-dollar mark, coming in at $992,207 in July. Prices have gone up 5.2 percent over the past three months and 16 percent year-on-year.
Manukau is the strongest performer, with prices up 20 percent, followed by the North Shore (15.1 percent), Auckland City (14.6 percent) and Waitakere (13.8 percent).
QV registered valuer James Wilson says: "Increasingly we are witnessing unconditional offers being made in order to secure a property without completing adequate due diligence. This behaviour is driven by a growing fear of missing out which is rife across the market."
Home values in Hamilton have shown massive growth, now up 31.5 percent year-on-year, and a huge 8.9 percent in the past three months. The average value in the city is now $519,094.
QV says a lack of supply is pushing up the prices, and now pushing buyers to outlying suburbs and towns.
Hot on Hamilton's heels is Tauranga city, as sales continue to surge, up a huge 25.7 percent year-on-year and 6.6 percent in the past three months. The average home value there is now $615,625.
There is strong demand from local and out of town investors including high numbers of people relocating to Tauranga as well as New Zealanders returning from overseas and people being priced out of the Auckland market.
With home values rising 14.4 percent in the last year, and 5.5 percent in the past three months, QV valuer David Cornford says there have been some instances of panic buying.
Some auctions have seen a surge in bidders as buyers try to beat stricter minimum deposit requirements.
There is also a severe shortage of stock on the market combined with historically low interest rates.
Christchurch is the odd one odd, with home values rising just 3.5 percent in the past year and 0.7 percent in the last three months. The average value in the city is now $492,165.
"There are still a lot of new homes being built and these appear to still be selling however we are seeing some asking price reductions,' says valuer Damian Kennedy.
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