Auckland house prices have continued to rise, and buyers expect that trend to continue, the city's largest real estate agency says.
Barfoot and Thompson managing director Peter Thompson said residential sales rose by 2.2 percent to a record average price of more than $822,000 in May, although the median price dipped by $3500 to $750,000. The number of sales jumped by 14.5 percent.
Mr Thompson said it had been an exceptional month, with demand continuing to outstrip supply.
"Property (for sale) is still scarce. Our biggest issue is lack of supply," he said.
In its latest monthly update, the Real Estate Institute said the average asking price in Auckland rose about 0.5 percent to $793,260 in May, while the national average climbed just over 2 percent to a record $532,638.
Southland, the West Coast, Bay of Plenty and Cormandel showed the biggest gains, with weaker prices in Gisborne and Marlborough.
There was also a record high turnaround in sales, with 3.4 percent fewer listings.
The average time it took to sell a house fell to a record 20 weeks in May, compared with long-term national average of 35 weeks.