House value dip put down to election, prices still up 5.4 per cent on 2016

The average Tauranga house is now valued at $687,241. File photo

A Tauranga valuer has put an unseasonable spring dip in Tauranga's housing market down to election uncertainty.

Tauranga home values dropped 0.6 per cent over the past three months, according to the latest figures from Quotable Value.

In spite of the small drop, values were up 5.4 per cent on last year. The average Tauranga house value was sitting at $687,241 - a 42.7 per cent increase on the previous peak in 2007.

QV Tauranga registered valuer David Hume said many buyers and sellers had been taking a wait and see approach until after the election.

"This means we haven't seen the usual spring surge in the market."

He said the Mount Maunganui market was still going strong. Demand was high and record sale prices were still being achieved.

"There has been solid demand from first-home buyers in areas such as Greerton where renovated three bedroom homes on half sites, are now selling for $550,000 up from around $450,000 a year ago."

"This is partly driven by the area's fringe CBD location and close proximity of the ever-growing commercial/retail hub in Tauriko."

The Western Bay of Plenty market increased 5.2% year on year and 1.6% over the past three months.

The average value in the district was $627,634, 39.3% higher than in 2007.

Hume said lifestyle properties were still in demand, especially from people looking for "better bang for their buck" than they could get in Tauranga.

"It's been a slower start to spring than usual with activity being hampered by an unusually wet spring and with the election result taking a while to be decided."

"We are no longer seeing the frantic buying seen during 2015 and 2016 but people are still achieving good sales prices it's just values are no longer rising at the rate they were previously."