$1 billion record for 'quiet' housing month

Some economists predict prices will continue to rise for the next few months, though they say some buyers are already starting to walk away from "unrealistic" asking prices.

Harcourts chief executive Bryan Thomson said its sales in New Zealand rose 37 per cent to 3025 compared with July last year. Fuelling demand was a 27 per cent drop in the number of properties on the market, which helped boost the average sale price 20 per cent to $229,000.

"Prices continue to be influenced by buyer demand and confidence," he said. A strong employment market, low interest rates and strong immigration also helped.

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