House prices have hit an all-time high but economists remain sceptical, saying higher mortgage interest rates are dampening the market.

House prices rose a modest 1.4 per cent in December, but ended the year nearly 10 per cent up from the year before.

Quotable Value figures show a dramatic and unexpected turnaround in property values in the past 12 months.

More affordable homes are driving enthusiasm in property sales, but experts warn the relatively cheaper housing may not last.

Harcourts CEO has predicted a marked improvement in property prices in provincial and coastal areas in 2010.

An elite number of homeowners shelled out over $3m for new homes in the past year, despite being in the midst of a credit crunch.

Home loan affordability worsened in Auckland and Northland for first home buyers last month.

House prices stayed static in the last two months and fears of more expensive mortgage money could be to blame.

House prices across New Zealand rose a slim 0.2 per cent in November, says the Real Estate Institute, but those in Auckland have soared nearly 12 per cent over the past year.

Giant Mitre 10 at Henderson changes hands for $20m.

Cafes and restaurants prove irresistible to smaller investors.

Hanover Finance has returned fire on the Shareholders Association's Bruce Sheppard.

Victims of property investor Blue Chip and those disenchanted with paying high leasehold fees are offering units for sale today.

New Zealand house values rose 1 per cent in the 12 months ended November 30, up from a 0.20 per cent gain in the period through October, says QV Valuations.

Two years on from the heady days of 2007, Devonport has weathered the property bust better than anywhere else in Auckland.

Lombard Finance receiver PricewaterhouseCoopers says investors will receive a repayment later this month of 6.5 cents for every dollar invested.

Auckland's house price surge has prompted a warning that over-valuations are creating a bubble that will burst.