A regional renaissance is dragging house prices up by the bootstraps despite a lull in the main centres, according to the latest data from QV.
Otorohanga was one of the regions were prices grew by more than five percent. Photo: Destination Waitomo
Overall prices rose by 1.1 percent in the three months to April, bringing annual house price growth to 7.6 percent.
The average New Zealand house now costs $678,856.
Otorohanga, Wairoa, South Taranaki, Ruapehu and Carterton all saw prices grow by more than five percent in the past quarter - though in all those regions the average house still costs less than $400,000.
At the other end of the scale, house prices dropped by more than a percent in Auckland City and the Grey District, while Waitomo, MacKenzie and Buller all saw drops of between 4.5 and 7.2 percent.
QV spokesman David Nagel said Auckland's lag was no surprise.
"The Auckland market went rampant some time ago, but it's now run out of puff."
He said the property purple patch in the main centres was dropping off more widely, citing Wellington City as an example, where values dropped by half a percent.
The rise in regional values spoke of big demand for commute-distance houses near the main centres, but also reflected some people's lifestyle choices, Mr Nagel said.
"Some people have decided to drift away from the main centres and made the lifestyle choice to live and work in the regions where there's more affordable housing available."
While some governmental policies would affect house prices eventually, it would be over a longer period of time, he said.
"We're going to see very much of the same over the next few months. Winter is typically pretty slow, so I don't see anything too spectacular happening over the next six months."