House price growth has steadily increased over the past year, though growth remains fairly modest.
House values in Whangārei, Palmerston North, Wellington and Dunedin had the strong rates of growth over the past three months. Photo: RNZ / Richard Tindiller
The Quotable Value's monthly House Price Index increased 3.5 percent for the year to November, from the previous month's 5.4 percent annual growth rate.
The national average house price was steady at $681,545.
QV general manager David Nagel said a loosening of bank lending restrictions for mortgages was a relatively minor change, although more first-time buyers and investors would likely inject some energy into the market.
House values in Whangārei, Palmerston North, Wellington and Dunedin had the strong rates of growth over the past three months, while prices in Auckland and Christrchurch remained flat.
"Dunedin and the wider Wellington region continue to lead the way, where value growth remains strong," he said.
"These regions appeal to a broad range of buyers, particularly first home buyers and investors, due to their relative affordability and higher yields on offer."
He said properties at the top-end of the market, such as Queenstown Lakes had been experiencing a cool-down in the market.
"Our latest insight reflects what we're seeing and hearing in the market; there is still plenty of activity taking place following the 'spring surge' in activity although value growth is fairly modest overall," he said.
"The warmer months should continue to keep listings at a healthy level although the busy Christmas period may reduce activity slightly as people hold of selling until things quieten down in January and February."