The number of houses for sale is at its lowest point since January 2008.
At the current rate of sales, Real Estate New Zealand chief executive Alistair Helm says it would take 28 weeks to sell every property on the market, compared with 37 weeks a year ago.
While sales of homes are up 25% compared with last year, Mr Helm says the number of new listings has not kept pace.
He says demand will continue to outstrip supply for some time, making it harder for first home buyers to get in the market.
Mr Helm says prices are only just edging back to where they were in 2007 and 2008.
It's projected that about 70,000 properties will change ownership this year, compared with up to 120,000 at the height of the boom.