House values in Rotorua's booming property market are continuing to rise - with a 27.7 per cent jump in average values year on year.

And real estate agents expect that to continue in the first quarter of 2017 with more stock on the market providing some good news for buyers.

The QV House Price Index for November, released today, showed the average value for a house in Rotorua was $372,849.

It is a jump of 7.2 per cent over the past three months and 27.7 per cent year on year.

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Average values now sit 27 per cent over the 2007 market peak.

LJ Hooker principal Malcolm Forsyth said he wasn't surprised with the big increases, the only surprise was that they weren't higher.

He believed Rotorua was still valued very reasonably compared with other places and playing catch-up.

"I've never been able to work out why we are so far behind."

He said when people looked at the areas within a 100km radius of Rotorua, the city was still one of the most affordable.

"I firmly believe there is still a lot of catch-up to do."

He said even with the big jumps in values Rotorua was still an affordable option for first home buyers.

Mr Forsyth said there was still strong out-of-town interest, from places such as Palmerston North and Wellington.

"It's not just the traditional Auckland buyers looking at us, everyone is looking at us."

Steve Lovegrove, owner of Professionals McDowell Real Estate, said it was great to see the consistency in terms of value growth.

"It is a good thing for the market."

He said some people worried that if growth was too much too fast there would be a boom and bust scenario, but "consistency creates security".

Mr Lovegrove said it was a nice place to be in and gave people a better platform to judge what homes could and should be worth.

He said with more listings coming on to the market, buyers were spread "a little bit more thinly" and gave them a bit more breathing room.

"They can stop and think."

Mr Lovegrove said he expected the first quarter of next year to be busy.

First National principal Ann Crossley said the jump in values wasn't surprising, but the interesting question was what the market would do after Christmas.

On a positive note, the market was heading into the break with a slight increase in stock, she said.

"There may be a bit more time for buyers to make decisions without the rush, but having said that certain properties come to market and are straight out the door."

QV National spokeswoman Andrea Rush said the Rotorua district continued to see strong value growth.

Ms Rush also singled out nearby Kawerau which saw values rise 52.9 per cent year on year and 3.9 per cent over the past three months.

Kawerau came off a low base, with the average of $158,602 making it one of the cheapest places in New Zealand to buy a home, she said.

By the numbers
- Values jump 27.7 per cent in Rotorua in the past 12 months
- Up 7.2 per cent on three months ago
- Average value in Rotorua is $372,849
- New Zealand average value is $624, 675