House prices are riding high but they're expected to cool

Real Estate Institute figures show the median price countrywide has risen about a quarter, to 826 thousand dollars, in the year to March.

Prices lifted about three percent last month.

ASB senior economist Mike Jones says Government changes to things like interest deductibility, will take some of the heat out of the market.

He says the bank expected house prices to keep nudging higher over the next six months but now expects them to flatten out.