House prices close to 2007 peak

House prices are nearly back to the peak levels of the 2007 boom.

Quotable Value says sale prices have risen 48.% in the past year.

The average price for a house is now about $423,000.

Laurence Murphy, a professor of property at the University of Auckland Business School, said the big cities except Wellington had the largest increases, whereas prices in smaller centres were still under 2007 levels.

Professor Murphy said demand is up, but vendors are still cautious about selling and that has pushed up prices.

Listen to more from Professor Laurence Murphy on Morning Report ( 2 min 50 sec )

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