The housing market lost some of its momentum in March but is expected to continue strengthening, the Treasury says.
“Sales are still up 25.3 per cent on an annual basis,” it said in monthly economic indicators released on Monday.
“Auckland sales fell 2.2 per cent but are up almost 17 per cent on a year earlier.”
Sales in Canterbury/Westland more than doubled from the quake-impacted levels a year ago.
The house price index rose 0.9 per cent in March, taking the annual increase to 4.2 per cent.
The average number of days taken to sell a house fell from 38 to 37, which Treasury suggests means more buyers are entering the market.
“We expect low interest rates and tight supply in Auckland and Canterbury to support modest house price growth for the remainder of 2012,” the Treasury says.
“Modest price gains should provide a signal for the construction sector to lift residential investment from current lows.”