The median price of a house in Gore increased by $40,000 in the past year, figures show.

There were 141 property sales in Southland last month, a slight increase compared with June 2011, but sales fell by 21 properties compared with May, Real Estate Institute of New Zealand data show.

Sales rose from 101 to 108 in Invercargill while they remained the same in Gore, at 18.

The median price for a home in Southland rose to $188,000 compared with $184,500 last year.

In Invercargill the median price last month was $186,250 compared with $185,000 in June 2011, while in Gore it rose dramatically, from $157,500 to $196,500.

Harcourts Southland Gore rural sales consultant Lloyd Anderson said although he had not seen the figures, he believed the dramatic difference in the median price of properties sold in the town reflected the type and value of properties sold.

There was a lack of available properties in the lower price bracket in Gore, Mr Anderson said.

"If you add a couple of $400,000, $500,000, or $600,000 homes and you have only a few $100,000 places the median price jumps big time," he said.

The biggest market in Gore was first-home buyers, who looked at properties between $150,000 and $250,000, which were also sought after by investors, he said.

Some properties could sit on the market for two to three months while others – particularly those bought by first-time buyers and investors – were snapped up quickly, he said.

Buyers were price-savvy and did plenty of research to ensure they got the best deal, Mr Anderson said.

"(Houses in the price range sought after by new homeowners and investors) don't usually stay on the market long but the big emphasis is, if the price is right, there's buyers out there for them, and I can't emphasis that enough."

The median price in Winton rose from $195,000 in June last year to $214,000 last month.

The median price for a property in Riverton has jumped considerably since May this year.

The median price for May was $141,000, last month it rose to $252,500. Meanwhile, Central Otago-Lakes recorded the highest lift in prices for June with an increase of 11.5 per cent, or $48,000, reversing a similar-sized fall in prices in May.

The median price increased by $35,000 compared with June last year, up by 8.1 per cent.

Prices in Central Otago increased from $350,000 in May to $419,000, while median prices fell in Queenstown from $525,000 in May to $419,000 last month.

Institute chief executive Helen O'Sullivan said the overall trend for the Central Otago-Lakes region continued to be steady as buyers started to appear more confident, but remained price conscious.

"Although the median price has risen there is no feeling that vendors are doing significantly better price-wise, although stock that has been on the market for some time is now selling," she said.

- © Fairfax NZ News

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