The REINZ reaction

Kevans said that while the report found house prices and sales volumes rose over March, and days to sell fell, the weakness in the domestic economy means, "we find it difficult to see that the market can sustain the recent improvement, especially as households continue to shy away from taking on additional debt."

"Indeed, the clearest indication of continued caution among buyers is the large number of days it is taking to sell a house. It took 41 days to sell a house in March, compared to 35 days a year earlier, but a much higher 58 days in February. And although house prices posted a modest rise (0.5% month-on-month), they remain 5.1% below the November 2007 peak," she said.

However, Kevans did say the recent falls in mortgage rates may spur buyer demand.

Westpac said that the REINZ figures, allied with a recent Barfoot & Thompson report, suggest that while there has been a rise in housing market turnover, "the nationwide numbers suggest the surge is actually concentrated in Auckland."