New figures from Realestate.co.nz show the average asking price of properties listed for sale in the city last month reached a record $764,000.

That’s up $87,000 on February last year and more than $200,000 on early 2012.

Nationwide, the national average asking price broke through the $500,000 barrier for the first time, reaching $511,421 in the month - a 2.6% increase from January.

Banks are getting ready for a competitive March: Kiwibank will tomorrow match the 5.39% two-year rate on offer as a special deal from ANZ, BNZ, ASB and Westpac.

Spokesman Bruce Thompson said the move was to ensure the bank remained competitive.

Broker Jenny Campbell, chief executive of the Mortgage Supply Co, said banks were cutting rates for the customers they wanted.

While the advertised two-year rate is 5.39%. it was not uncommon for customers to be offered rates as low as 5.25%. “Banks are trying to keep their margins but it’s a bit of cat and mouse at the moment around rates. You will definitely get a good rate for a good deal.”

Banks are also offering incentives such as TVs, iPads and cash payments.

Realestate.co.nz spokesman Bryan Thomson said the market was showing robust growth in listings as well as prices.

There were 12,008 properties listed for sale nationwide in February,  an increase of 26% on January. 

While new listings in Auckland were only slightly up, by 1.1%, on the same time last year, Canterbury and Waikato both experienced significant jumps in new listings, of 14.9% and 8.6% respectively over February 2014.

New listings in Wellington fell 9.7% from the same month last year.

The overall inventory of available housing stock for sale is still at low levels. Inventory is a calculation of how long the available listings would take to sell at their current sales rate.

Across the country inventory rose slightly to 24.4 weeks, marginally above the record low level set in January of 21.4 weeks. “The long-term national average is 36 weeks of stock, which indicates that current levels continue to strongly favour sellers,” Thomson said.

The central North Island region experienced the biggest month-on-month fall in average asking price last month, down 13.8%.