UPDATED 5.22pm Auckland's house value is continuing to grow, but it's Wellington that's charging ahead now in sales activity.

WATCH ABOVE: NZ Herald Focus' Tristram Clayton speaks with QV spokeswoman Andrea Rush

The latest QV house price figures show the average house price for the Auckland region is still above the $1 million mark, increasing $18,000 over the past three months, to $1,031,253.

QV spokeswoman Andrea Rush said the Wellington market has now taken off, with prices rising seven percent during the quarter and over 21 percent year on year.

"It's showing strong levels of activity and demand, and values in the capital are now rising faster than the Auckland region, over the past year and over the past quarter."

Wellington house values are only about half those of Auckland's. The QV House Price Index showed Wellington area average values at $553,023. Nationally, house values rose 14.3 per cent in the last year to reach an average $619,660.

QV homevalue General Manager David Nagel said the prices are being driven by high demand and low stock.

"What we're seeing in Wellington is a real shortage of stock. Normally this time of the year we see a little bit of a spring rush. People listing their properties as days are getting a bit longer but we're not seeing that at the moment"

Mr Nagel said the strongest demand is at the lowest end of the market, with first home buyers and investors going head to head.

He said investors seem to have a bit more money and are competing better.

Ms Rush said there are signs of a slow down in activity in Hamilton and Tauranga but house values are still up.