Strong demand fuels house shortage

Professionals Patrick & Scott principal Andy Scott said there had been a notable increase in activity in the Wairarapa market.

Strong demand has led to a shortage of houses in the low and middle ranges of the Wairarapa market, a local property expert says.

QV's July residential price movement index showed average house values increased across the region year-on-year. In Masterton, house values increased to $238,364; in Carterton, values increased to $269,213; and in South Wairarapa, they increased 8.5 per cent to $305,380.

Professionals Patrick & Scott principal Andy Scott said there had been a notable increase in activity in the local market.

"I haven't really noticed much change in price but there's definitely more buyers out there," he said.

"First-home buyers are coming back into the market, which is great, and we're getting quite a few buyers coming from over the hill."

Good properties were getting snapped up quickly as a result.

"Tidy and well presented properties are selling really quick," Mr Scott said.

"Quite a few properties are getting multiple offers."

Some buyers were coming from Auckland but not enough to make a significant impact, he said.

Nationally, home values rose at the fastest year-on-year rate in seven years to an average value of $527,760.

This was a 10.1 per cent increase on July 2014 and 27.4 per cent above the previous market peak of late 2007.

QV National Spokeswoman Andrea Rush said there was a definite upward swing in market activity in parts of the North Island: "This is especially evident in Hamilton, but also in Tauranga, Whangarei, and the Franklin, Hauraki and Waikato Districts."

"Net migration remains at record highs and there are now incentives for new migrants to move to areas outside of Auckland, so this, coupled with record low interest rates, is likely to see continued upward pressure on home values as we move towards spring."

Sales volumes had been tracking down since March which was a part of the normal seasonal downturn and a result of fewer homes being listed for sale during winter, she said.