In other words, rising prices might not be a sign of plenty of activity. Prices can rise, or at least stay high, because sellers have withdrawn stock, creating high demand for fewer houses on the market. This means sellers are not withholding stock but they are asking more than buyers are prepared to pay. Barfoot & Thompson managing director Peter Thompson believes residential house prices have stopped rising. Rising interest rates, not house prices, could make this a nervous year.

Source: New Zealand Herald January 15, 2017 16:01 UTC