House prices in the Bay surge

In Napier, house values have risen more than 16 per cent since August last year, reaching an average value of $386,615.

Whether in Wairoa, Napier, Hastings or Waipukurau, house values in Hawke's Bay are continuing on an upward surge.

The latest QV House Price Index released yesterday revealed although values in Hawke's Bay remain substantially below the national average of $612,527, they are increasing as supply shortage drives strength in the market.

In Napier, house values have risen more than 16 per cent since August last year, and almost six per cent over the past three months, reaching an average value of $386,615.

Hastings was not far behind, with values rising more than 15 per cent year on year. Over the past three months, values had risen six per cent, reaching an average value of $359,679.

Nationwide, residential property values rose nearly 15 per cent since August last year, and six per cent over the past three months. The average value for the Auckland region has now reached $1,013,632.

QV Homevalue Hawke's Bay registered valuer Bevan Pickett said the high demand for residential property in Hawke's Bay was coupled with a shortage of good properties for sale.

Leaders managing director Elanor MacDonald said they were still seeing a lift in the market, but this was not dramatic.

"We're hoping to see more homes coming to market with spring. There's definitely a shortage in a lot of areas, which is driving the demand."

Tremains Real Estate director Simon Tremain said the market would have slower periods but, coming in to spring, buyer demand was very strong, and activity continued to be at an "all-time high".

"Spring is a great time for new properties coming to the market but buyers have a big appetite and continue to gobble up all new stock."

Although he did not see any sign of the market slowing, "as always buyers need to be careful they do not over extend as the upward market will stop at some stage".

Property Brokers Hawke's Bay manager Paul Whitaker said they were continuing to see strong growth in the market. He did not think this would continue, instead "we'll meander forward".

Lending criteria was slowing the market, meaning some people's home-owning aspirations would have take a bit longer, and there were limited options for people to buy and sell, which was stalling the market. However, he expected this would change with warmer weather.

In Central Hawke's Bay, values had increased by almost 13 per cent in the past year, with an average current value of $230,633.

Harcourts Waipukurau co-owner Heatha Edwards said their clients were enjoying a healthy boost in property prices, and a very busy market.

"With all the interest to buy in gorgeous CHB, values have indeed continued to rise, and may do for the immediate future."

In Wairoa, the average value was sitting at $154,445, with a nine per cent increase since August 2015. Professionals McIntyre Real Estate co-owner Denise Whitmore said the QV figures corresponded with what they were seeing.

"There's been a lot more interest, not only from investors but from local buyers," she said.

"We're seeing good offers, with prices rising above valuations for well-presented places.

"Wairoa's on a real surge."