House prices easing in Auckland, Hamilton

While house prices are continuing to rise across the country, the latest QV figures show the increase has eased slightly in Auckland and Hamilton.

The average price of a house nationwide is now $631,302 - 52.4 percent above the previous peak in late 2007.

QV spokesperson Andrea Rush says values are still rising in Tauranga, Wellington and Dunedin.

"We are now seeing a strong trend of value growth in regional centres around the country, particularly those situated within two to three hours' drive of the main centres that have seen very strong value growth recently such as Auckland, Wellington and Queenstown."

Ms Rush says rising mortgage rates and the new LVR rules may slow the rate of value growth during the year, but record high net migration and a lack of housing supply will balance this.

"As well as the fact New Zealand property can be brought freehold and has fewer taxes on property compared with many other countries, meaning it remains a highly attractive investment to foreign buyers," she says.

Hamilton home values have increased 18.6 percent higher year-on-year, while in Auckland it's 14.5 percent. figures also show the market is beginning to cool in Auckland and Hamilton.

Chief executive Brendon Skipper says it's too early to see if the nationwide spike will continue throughout the year.

"Next month should give us a clearer indication of trends across all measures," he says.

Graphic shows the QV house price index
The price of a house in New Zealand has risen 13.5 percent in the past 12 months (Newshub)