Peacocke says the national median price for rural property rose $30,000 to $535,000, while the Auckland median is $855,000.
He says the lifestyle market in Waikato is warming up, although listings are in short supply, and the market in the Bay of Plenty and the lower North Island is seeing activity from Auckland buyers.
Investors
The biggest worry among more than half (57 per cent) the residential property investors surveyed by the ANZ is the government tinkering with regulations and tax rules.
The bank's Property Investment survey shows that while many landlords have reduced their debts, and are looking to buy more properties, they see bureaucratic intervention as the biggest risk to their business.
Other findings of the online survey of 1150 people show investors expect property values to rise by 6.3 per cent, and rents by 2.7 per cent next year. Most investors said the loan to value ratio borrowing restrictions had had no impact on their investment strategy.
Sarah Berry, ANZ's head of products, says rising property values have reduced leverage ratios and that investors are taking a long-term view in their investment strategy.
Interest rates
Could our official cash rate go down to 2 per cent? Something that was unthinkable 10 months ago is now being raised by bank economists who expect Reserve Bank governor Graeme Wheeler to drop the OCR from its current 2.75 per cent to 2 per cent by June next year.
Westpac economists are forecasting OCR reductions next March and June. While predictions of a cut this October 29 have cooled, Wheeler may yet cut rates on December 10 to 2.5 per cent.
Westpac's forecast assumes an El Nino drought hitting agricultural production; the housing market slowing due to mortgage lending restrictions hiting borrowers and inflation running closer to one per cent than two for much of 2016.
