Growth in Rotorua's property market is showing signs of slowing, with values slipping since April.
But a local real estate agent says month to month house values may not indicate an overall decline, but rather a move away from the "rampant increases" of the past 18 months.
The QV House Price Index for June showed average Rotorua property values experienced a modest $2670 decrease since April and are now sitting at $393,753.
But values have increased by $98,512 since January and current average house values are still 20.2 per cent higher than the same time last year.
Values are 34 per cent higher than the previous peak in 2007.
Growth has been slowing with just 0.5 per cent of the rise being in the last three months.
Professionals McDowell Real Estate's Steve Lovegrove said he would not start ringing the bell to say values were decreasing.
"It is very narrow to look at values month to month as they can be swayed by a variation in the types of property being sold.
"What we're seeing at the coal face is still very high levels of buyer demand and not enough stock to meet that.
"However, I think what the figures do indicate is we are moving away from the rampant increases that have been going on in the last 18 months.
"There is still pressure on prices but it appears it has reached a point where people are saying 'these prices are ridiculous' and things are taking a step back.
"Year on year the values have increased and they will continue to increase, but not at the same massive rate - at a more sensible level, which is very good news."
First National principal Ann Crossley said she had noticed a cooling of the market, though put it down to the lack of supply.
"There's still buyers when the property is there, but the properties are coming onto the market slower.
"People are more reluctant to put their house on the market because there's nowhere to go. In the coming months we're expecting to see more and more subject to house sell offers.
"I think following a big surge in the market we are seeing it ease a bit and that can translate to a dip - but it's nothing to be concerned about."
Simon Anderson, chief executive of Realty Services, which operates Eves and Bayleys, said Rotorua was still seeing a lot of outside buyers.
"In provincial areas real estate tends to lead the market."
Michael Power of QV Rotorua said rises in value affected the whole region.
"The other Bay of Plenty districts have had similar growth ranging from 14 per cent to 38 per cent.
"The annual growth rate has taken a slight dip which has been the general trend across most of the country."
The average value in Whakatane went up by 14.3 per cent in the last 12 months, rising to $399,082.
In Tauranga and the Western Bay of Plenty, values rose by 14.6 and 16.3 per cent.
The average increase across New Zealand was 8.1 per cent, with the average value now $639,051.
- Additional reporting by Angela Woods