New Zealand's housing market didn't cool last month, with prices instead hitting a new record high after the largest ever year-on-year growth in May, according to new data.
The latest TradeMe Property Price Index was released on Tuesday, showing the average national house price has grown 16.6 percent over the last year to $820,950.
Sales Director Gavin Lloyd says it's usual for the housing market to start to cool off in May as the winter months loom, but that hasn't been the case this year. It's the ninth month in a row that prices have hit a new record.
The large jump is being put down to increased demand with less properties on the market.
"Nationwide, views on properties for sale were up by 2 percent in May when compared with the month prior, while supply was down by 3 percent," said Lloyd.
"Our May data tells us that we are still very much in a seller's market and unfortunately for buyers unless we see an increase in stock or demand begin to ease off, the winter months look like they will be red hot for the property market.
"There's been a lot of comment around the new phenomenon of FOOP (fear of overpaying), while that may be real for some, our data is showing buyers are still very keen to get on the ladder and they’re willing to pay big bucks."
Every region saw an annual increase in average asking prices, with nine hitting a new record. That includes Auckland ($1.083 million), Wellington ($857,950), and Bay of Plenty (830,000).
The biggest regional year-on-year increase was Manawatu/Whanganui with a 25.4 percent jump, followed by Wellington (22.1 percent) and Southland (17.7 percent).
But it is Hawke's Bay being described by TradeMe as having a "standout month" in May.
"On top of seeing the second-largest increase in demand of all regions last month (7 percent) and the number of listings up 7 percent month-on-month, the average asking price in the region entered the $700,000 bracket for the first time at $700,750."
Supply was down across nearly every region - excluding Manawatu/Whanganui, Southland and Hawke's Bay - compared to April. The biggest drops were in Otago, Taranaki and Northland.
On the other hand, views for properties on the website jumped in 12 of 15 regions. Only in Taranaki, Otago and Wellington did demand not increase.