Wanganui houses up 19pc in year

Wanganui house prices are 19 per cent higher than last year, new figures show.

The median price of a Wanganui house in November was $165,000 - a $5000 increase from October and $26,000 more than November 2013, according to Real Estate Institute of New Zealand figures.

Six more houses were sold in November than in October and one more was sold than in November last year, at 57 sales.

LJ Hooker Wanganui owner Steve Ellis said he had noticed an increase in property prices in the past six to eight weeks.

"Capital valuations have dropped and we've had a lot of people from outside the area entering the market," he said.

"People from Auckland, Wellington, the South Island and overseas are attracted to Wanganui's low prices.

"You get a positive return on your investment and cash flow when you buy in Wanganui. Not many places in the country have that."

Meanwhile, the average asking price for a Wanganui house was up by almost 12 per cent in November compared with 12 months ago.

That was the sign of a strengthening market, according to Ray White Wanganui principal Tim Hocquard.

Figures released by Trade Me showed the average asking price for a small home of 1-2 bedrooms was $148,000 - a 14.1 per cent increase on 2013. For a medium-sized 3-4 bedroom house, the average asking price was $252,050 and it was $350,000 for a large house with five or more bedrooms prices.

The average asking price for all Wanganui properties in November was $230,900, 11.8 per cent up on November 2013.

Mr Hocquard said sales had picked up, particularly at the high end of the market.

"There has been a boost in the market which is generally normal heading into summer. We are noticing a big increase.

"In the last month, we have seen more sales over $500,000 than we have seen in the previous 12."

Nationally, the average asking price for a New Zealand home broke the $500,000 barrier in November for the first time, while the median house price rose $25,750 from October to $455,750.