Homes sales in New Zealand increased by 25% in April, compared to a year earlier, reaching a six year high, according to the latest data from the Real Estate Institute of New Zealand (REINZ).

There were 7,104 homes sold in April, an increase of 1,428 sales compared to April 2012, but a 13% decrease, compared to March 2013.

REINZ chief executive, Helen OSullivan, stated: ‘Several regions appear to be benefiting from the tail-wind generated by the strength of house prices in Auckland and Christchurch.’

However, the national median sales price decreased 2.4% to $390,500 (£211,000) in April from the prior month, but this is still up 7% compared to 12 months ago.

Because of the high average property prices in the country the Reserve Bank has said recently that it is considering putting limits on high loan-to-value mortgages, which would obviously slowdown the market.

In Auckland, average property values have increased 12% to $628,205 (£340,000) in the past year, according to the state valuer Quotable Value.