House prices are increasing in New Zealand. Maximum increase has been seen in three cities: Christchurch, Wellington and Auckland.

The Housing Price Index of the Real Estate Institute has revealed this. The index, which has been witnessed last day, has also unveiled that Wellington is at the top of the list when it comes maximum increase in housing prices.

In October, housing prices have increased by 3.3% in Wellington. It was considered to be record breaking. In addition, Wellington has been getting maximum national gains. Though rise was witnessed across the country, Wellington was leading the race.

The news of price rise in housing came some days after the warning being given by Graeme Wheeler, who has been appointed as new Graeme Wheeler of Reserve Bank. He announced that housing prices are quite overestimated, which has led to rise in indebt amount.

Wheeler's warning should be clearly understood by banks, which can expect a big leap in credit growth. Helen O'Sullivan, Chief Executive of Reinz, said, "With strong growth in the number of sales, increases in the median price and falls in the number of days to sell".

In addition, it has been found that number of days to sell a property in New Zealand has dropped to 32 days.