The pace of growth in house prices has hit a five-year high.
Quotable Value's latest monthly index shows property values rose 6.5% in the year to March.
Auckland and Christchurch are leading the charge, with Auckland up 11% over the past year.
While demand remains solid in the country's largest city, QV says a lack of listed properties for sale and high prices are starting to deter potential buyers.
Infometrics managing director Gareth Kiernan says some urban centres have performed strongly.
"There's clear pressures in Auckland and Canterbury, and they have been building for some time, but you look around most of the rest of the country and price growth is still pretty subdued really - especially out in the provincial areas."
Mr Kiernan says with mortgage rates remaining low and the economy's prospects gradually improving, he's predicting house prices will keep strengthening this year.
He says values are now 3.4% above the previous market peak of late 2007.
