Property values are still rising

Average property values have continued to rise in Tauranga and the Western Bay - up 3.6 per cent and 6 per cent respectively over the past year, according to QV.

New residential property price movement index figures show that Tauranga's average property values rose 3.6 per cent to $451,665 and the Western Bay district 6 per cent to $422,814.

LJ Hooker Tauranga principal Stephen Pepper put the increase down to a rising interest in good family homes.

"The biggest change that we've had recently is we were having a lot of investor sales over the last couple of months and that soaked up a lot of the lower end of the market. The trend that we are seeing now is that we are seeing a lot of interest in family houses."

Mr Pepper said a family home listed in the high $300,000s last Friday night had three offers by Sunday night.

He said he expected the median selling price would increase in the coming months, not because prices were rising but because of the interest in slightly larger homes.

Ross Stanway of Realty Services, which operates Eves and Bayleys, agreed it was not a case of prices rising across the board but a reflection of the type of properties currently selling.

"I think that average is a reflection of the fact that in recent months there has been a shift to more volume of sales above what was the previous median. There's been more sales in the mid to slightly above range," he told the Bay of Plenty Times Weekend.

"There's been a continued shift in the volume of sales above the $400k mark. That would be increasing the average selling price. There's just been that slow but steady increase in average values."

Tauranga Harcourts managing director Simon Martin agreed.

"Our average sale price is certainly up on what it was the previous year and that's reflective of the value of properties that are selling," he said.

Mr Martin said the economic indicators were positive at the moment with indications the official cash rate would not be increased for some time.

Mount Maunganui and Papamoa Ray White franchise owner Greg Purcell said he had noticed an increase in interest that had pushed prices up slightly as people attempted to outbid each other at auctions.

"Part of that is that there's not a lot for people to look at. We haven't seen the usual number of properties come on the market at this time of year," he said.

QV Home Value registered valuer Mairi Macdonald said the Tauranga market was stable but there had not been much activity in the Western Bay area.

"The Tauranga market is steady with a good level of enquiry and interest in all levels of housing, however, sales volumes are down from past months. Demand for vacant sections is good and has increased over the past six months," she said.