"January to now the volume of sales at Mount Maunganui was up 15 per cent and they were down 14 per cent in Papamoa."
However, Mr O'Donnell said the figures did not take into account new builds. "There is lots and lots of new building going on in Papamoa."
Mr O'Donnell said prices in Mount Maunganui were going up faster than anywhere else in the area. "There's lack of supply and huge demand. There's more people coming into New Zealand than leaving."
Tauranga Harcourts managing director Simon Martin said the volume of sales each month this year had dropped compared to last year. "The LVR is having an impact because the first home buyers are struggling to get into the market," he said
The higher prices were also a result of the lending restrictions, Mr Martin said. "The median is up on last year which we could probably put down to less volume in the lower bracket."
Mount Maunganui was not seeing the same downward trend in sales because the median price was higher, he said.
Realty Services chief executive Ross Stanway agreed the new lending restrictions were the main driver behind the figures. "That increase in median would be obvious because of the fact that most houses now are selling in the medium and above range because that lower quartile, which was traditionally first home buyers, has been impacted by the LVR."