Hottest properties in January were those going for less than $400,000.
Ross Stanway, chief executive of Realty Services, said low interest rates, finance availability and competition between banks contributed to a Tauranga property market in "great shape". While Tauranga prices have failed to improve like those in Auckland or Christchurch, that could soon change.
"Confidence is returning in the development sector so there's now some movement in sections, and new sections becoming available.
"That's started to gather some momentum - we probably are at a stage in the cycle where, if anything, prices will just start to show some upward pressure particularly in middle market."
That middle market is selling best with three to four bedroom family homes in top demand.
Greg Purcell, franchise owner of Ray White Realty in Mount Maunganui and Papamoa, said one of the biggest trends in the past six months was plenty of multi-offers on some houses.
But other houses are still failing to attract buyer interest.
A recent auction of a Campbell Rd home attracted seven potential buyers and four bidders, something which "wouldn't have happened" two to three years ago.
Mr Purcell expected a continuation of last year's real estate market - healthy but unpredictable.
A busy start to the year had tailed off, and prices will increase only if demand starts to outstrip supply.
Half of all houses that changed hands in January were sold for under $320,000, down from $360,000 the year before.
LJ Hooker Franchise owner Neville Falconer believed prices were now as low as they would go.
