Move over Auckland, Wellington has claimed the mantle of the fastest-rising house prices in the county.
The latest monthly QV statistics for September show the capital's house values rising 21.2 percent year on year and 7.1 percent over the past three months.
An average house in the wider Wellington region will now set you back $553,023 - 21.4 percent higher than the previous peak in 2007.
In comparison, Auckland prices have continued to rise over the past three months, but QV says it's showing signs of slowing in that annual growth has slipped back 0.9 percent.
The city's north, south, west and central suburbs all saw double-digit increases in value for the year.
QV homevalue general manager David Nagel says the strong growth in Wellington is a response to high demand and shortage of supply of homes listed on the market.
"The strongest demand is at the low end of the market and it appears first home buyers are now missing out to investors as they compete for entry level properties.
"Investor housing stock has become really scarce and we are seeing big numbers vying for limited stock at auctions," he says.
Mr Nagel says auction houses in the region are seeing high clearance rates because buyers fear missing out and "stretching their budgets" to secure the property.
Meanwhile in Auckland, QV national spokesperson Andrea Rush says the city's seen a "stabilisation of prices" since the new loan-to-value ratios were brought in requiring a 40 percent deposit from investors.
"We are also seeing a shift in demand from the investor housing stock to properties with higher density development potential, which suggests some buyers may be getting the message that upward growth around existing town centres will eventually happen under the new unitary plan," she says.
Prices across the country have also risen, with the main centres seeing growth.
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