Momentum building in house market, according to ANZ

"Abstracting from these factors, however, the improvement was already flagged by mortgage approvals in prior months, indicating that the move has some substance behind it," the report said.

"The property market has strengthened further from the trough at the end of last year. The surge in momentum that is building is most noteworthy in Auckland, but has been apparent in most localities, expect Canterbury. How long the current easier monetary conditions prevail is now the pertinent question."

The ANZ Property Focus includes the ANZ Property Gauges, 10 gauges the bank uses to assess the state of the property market and look for emerging trends.

Of the 10 gauges, only interest rates pointed to house price rises, with rates set to remain lower "for a limited time."

Of the remaining nine gauges, three suggest house price falls, three are neutral and three suggest either neutral or upward price movement.

Affordability, serviceability/indebtedness and liquidity all suggested house price falls while mortgagee sales, globalisation and migration all remained in neutral territory.

Supply-demand balance, consents and house sales and median rent all point to either rises or no change in prices.

The bank forecast median rents to increase further, adding that while from a low base, "momentum across the hosuing sector is recovering. . . while the level of activity is low, the ‘change' is still growth."