The March median for Mount and Papamoa was $432,500, up from $386,500 in February, and $360,000 for the rest of the city, up from $328,000.
House prices have steadied, after falling up to 20 per cent over the past three years, rents are strong, banks are lending more freely, and interest rates are expected to stay low into next year, giving first homebuyers and investors more confidence to take on a mortgage.
Ross Stanway, spokesperson for Bayleys and Eves Realty, said the good thing was "we are maintaining the momentum evident in February. There are signs of confidence that weren't there a few months ago."
He said buyers were more willing to commit if they think there's competition for the property they have their eyes on. "We are seeing more multiple offers and more action in the auction room."
Mr Stanway said it was good to see a lift in the median selling price, though it can be skewed by high-priced sales.
In March, four purchases over $1 million at the Mount were settled - a $2.2 million town house in Marine Parade, just down the road the $1.7 million Vivaldi penthouse which was sold at auction, a $1.2 million property in Tay St, and a house in Omanu for $1.082 million.
Interestingly, volume was higher in the Mount than the growth area of Papamoa last month, 48 sales to 30.
Max Martin, franchise owner of Harcourts Advantage Realty, said "we have seen a bit of a change at the Mount and some good sales. A few farmers are now looking at buying".
The number of Tauranga listings, shown on Trade Me, has fallen from 2100 to 1800. "The market is ticking along nicely and if we can keep at the level of 200 sales for the city, then that's great," Mr Martin said.
Helen O'Sullivan, REINZ chief executive, said in March Tauranga was a pocket of strength outside Auckland, along with Hutt Valley and Timaru in terms of median house price and volume growth.