The average value of a home in Tauranga was now $700,744, according to the latest monthly QV House Price Index.

The data showed Tauranga house values rose 2.6 per cent year on year but dropped 0.9 per cent in the past three months.

The Western Bay of Plenty market increased 5.2 per cent year on year and1.8 per cent in the past three months. The average value in the district was now $633,569.

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Quotable Value Tauranga property consultant Steven Dunn said the market was slowing, but premium properties remained in high demand as Auckland buyers sought a change in lifestyle.

"There does appear to be a shortage of listings for mid-range properties, which is a sign that people are holding off selling until after winter," he said.

Dunn said buyers were taking their time when searching for a property and showing less willingness to negotiate on price, but a good portion of homes were selling after auction.

"First-home buyers, particularly those priced out of the Auckland market, remain active in the market," he said.

"As the local economy continues to diversify, job prospects and business opportunities also improve, which appeal to many who seek their first step onto the property ladder."

Dunn said the Western Bay of Plenty was also benefiting from a strong local economy, which was driving steady value growth.

"KatiKati and TePuke, in particular, is enjoying the benefits coming from a productive Kiwifruit trade," he said.