Tauranga property market 'runs out of puff'

There was not much movement in Tauranga or Western Bay property values last quarter. File photo

Tauranga house prices declined a little over the past three months but are still up on this time last year, according to new figures.

The average Tauranga house value decreased by 0.1 per cent to $686,759, according to Quotable Value. The national average was $646,378.

QV Tauranga spokeswoman Melanie Lewis said the Tauranga and Western Bay markets continued to perform at a steadier pace than previous months.

"High-end desirable family locations such as Mount Maunganui and Bethlehem continue to be popular both with new people moving into the area and locals upsizing.

"Demand from investors appears to have dropped off, concurrently, however, rent prices have stabilised."

She said both buyers and sellers were taking a "wait and see" approach, possibly influenced by the delayed arrival of warmer spring weather and inconclusive election results.

Meanwhile in the Western Bay property values increased 0.4 per cent this quarter and 6.9 per cent year on year. The average value was $614,822.

QV national spokesman David Nagel said the normal spring surge in property listings had not eventuated through most of the country.

"This lack of supply helped insulate the market from more significant falls in values."

"While the property markets appear to have run out of puff in the main urban areas, there's still plenty of activity in the smaller provincial towns which were slower getting started."