Property values are now above the same time last year according to the QV residential property indices for October. Nationally, values are 0.2 percent above the same time last year, up from the -1.1 percent reported last month.

Nationwide values are now 3.4 percent up from their low in April, but remain 6.6 percent below the market peak of late 2007.

A further market measure, distinct from the index, is the average sale price which across New Zealand also increased slightly to $389,198 in October from $387,567 in September.

QV Valuation Manager Glenda Whitehead said that "the continued shortage of properties, especially in the main urban areas, is leading to a continued imbalance in the market with more buyers than available properties. As a result our Valuers are seeing many properties sell for well above their expected values. These demand-based price increases are likely to continue until the balance in the market changes. This will happen either when more properties come onto the market, or when buyers consider prices to be beyond their affordability and as a result consider other parts of the market, or resolve to continue their current living arrangements. Building consents have risen in recent months but it will take some time yet for those properties to reach the market" said Whitehead.

"The lack of strong spring activity could be due to several factors. Many owners will have locked in to lower long term interest rates at the beginning of the year and will be concerned about losing those rates if they sell. Having made the decision some months ago to stay put, they may now be extending or renovating and no longer be considering selling" she said.

Values in the main centres have recovered considerably since earlier this year. As a result, most of the main centres now have values above the same time last year. In the Auckland Area values are now 2.5 percent above last year, the Wellington Area is 1.6 percent up, Christchurch 1.3 percent up, and Dunedin 4.3 percent up. Hamilton is only 0.1 percent below last year, while Tauranga remains the only main centre to be below last year at -1.4 percent.

Values in most of the provincial centres have not risen as much in recent months as the main centres. As a result most are still showing values below the same time last year. Whangarei is -3.3, Rotorua -0.9 percent, Gisborne -7.9 percent, Wanganui -3.2 percent, and Invercargill -0.8 percent. New Plymouth at 4.6 percent, Palmerston North at 2.4 and Nelson at 0.6 percent are above last year. Values in Queenstown Lakes have continued to slide further and are now -9.4 percent below last year.