Growth in the housing market is continuing to cool down as winter arrives.

The latest QV House Price Index out this morning shows property values nationwide for May have increased just under 10 percent over the past year - a two-year low.

High growth in provinces like Rotorua, the Hawke's Bay and Northland have been offset by marginal gains in Auckland and Hamilton.

National spokesperson Andrea Rush said a number of factors are in play.

"Growth is continuing to ease back due to lower demand in the housing market caused by the latest round of LVR restrictions and also tougher lending criteria from the banks across the board."

Ms Rush said that cooling down could continue for a number of months.

"We're also seeing sales volumes down on what they were this time last year, particularly in Auckland. It's possible market activity may remain more subdued right up until after the election."

Registered valuer David Cornford said the same of the election’s influence on the market.

"We've also go the upcoming election which can cause some people to delay making decisions around buying and selling property, because Labour and National have quite different policy around housing and housing affordability."

While growth in the market is cooling, house values are rising all over Wellington but its Kapiti that's experiencing the biggest boost.

The QV House Price Index shows values up 4.5 percent in Kapiti over the last three months.

The average house value for wider region is just over $600,000.

Mr Cornford said the Kapiti expressway is playing a big part in the increase.

"That's sort of attracting more buyers out that way. Kapiti provides more affordable options. People are willing to commute because they're getting more for their money.”

Overall value growth for the capital is at 3.1 percent per quarter, lower than the 6 percent recorded last year with the latest QV figures showing there's less buyer demand for properties in Wellington compared to this time last year.
 
Meanwhile house prices are remaining steady in Christchurch - despite rises seen across the country.

The QV House Price Index shows the average home in the city now costs $495,000 - up one percent from 12 months ago.

Christchurch's QV Valuer Daryl Taggart said after years of increasing prices following the earthquakes, the rate of growth has declined over the past 18 months.

But, he said it's not something to be overly concerned about just yet.

"I wouldn't see values coming back in the near future. I just don't think they're moving forward and that's the issue that we're having."

He said the supply of homes is keeping up with demand, and more expensive properties aren't as sought after.

"Those properties over that $600,000 mark are starting to sit a bit more, and there are probably not as many buyers out there for them."