The number of houses sold in February has jumped from last month, but house sales remain slower when compared with the same time last year.
But local real estate agents say it isn't doom and gloom - and is more a case of the market stabilising after an "exceptional" 2016.
Figures released yesterday by the Real Estate Institute of New Zealand showed 95 houses sold in Rotorua last month. In February 2016 137 houses sold, while January saw just 62 house sales in Rotorua.
The median sales price for February was $317,500, up 10 per cent on February 2016 when the median sales price was $288,000 but down on last month's median sales price of $326,500.
Simon Anderson, chief executive of Realty Services which operates Eves and Bayleys, said he believed the figures reflected the market heading back to more of a "normal" market.
Mr Anderson said they were seeing more activity at the top end of the market, and were seeing some good competition in the auction rooms.
"The quality and number of people gives us confidence going forward."
Mr Anderson said they were also seeing more investors re-entering the market.
"Rotorua at the moment is experiencing a range of buyers which is quite exciting."
Steve Lovegrove, co-owner and principal of Professionals McDowell Real Estate, said while median prices could vary between months it was positive to see the year on year growth in sales prices by 10 per cent.
Mr Lovegrove said 2016 was an "exceptional" year for house sales with the city playing catchup and this year was returning to more stable levels of sales.
"There is more room for movement as Rotorua continue to grow as a city."
He said the drivers for the hadn't changed.
"If you look across five or six years what is evident is that we are now back in a normal Rotorua market as opposed to an exceptional market."
Mr Lovegrove said it was not "doom and gloom" but a move to a more stable market.
First National Rotorua principal Ann Crossley said she believed the lower sales figures for February was because of lower stock numbers.
She said one staff member reporting 60 people through their open homes despite the torrential rain over the weekend.
"It's not about a lack of buyers, I think it is about a lack of stock."
She said investors were returning to the market but at lower levels.
Mrs Crossley said sales in February had moved down one price bracket with more sales in the lower ends of the market, which appeared to "run out of steam" when it reached $650,000 plus.
"There's still strong interest from first home buyers, who aren't competing as much with investors."
Among those selling is Rotorua woman Ranee Hartfield, who put her three-bedroom Ngongotaha home on the market four days ago.
In that time she has had 21 groups take a look.
"The interest is huge. There was torrential rain at the weekend and we still had 16 groups through.
"We've owned this place for 11 years and now we're selling it's clear it's the ideal first-buyer home. It's more appealing to that market than an investor."
Ms Hartfield was initially surprised by the latest Real Estate Institute of New Zealand figures, showing February was down compared with the same time last year.
"I suppose the market had to plateau at some stage, it had to come to a point where it couldn't keep going up."
By the numbers
- Median price for February 2017 of $317,500
- Up 10 per cent on the same time last year, but down 2.8 per cent on January
- 95 houses sold in February.
- Down on the previous February when 137 were sold, but up on the 62 sold in January