June's property sales across the Bay are ahead of the same month last year but the wet winter season has cooled the market after it started heating up in May.
In Tauranga, there were 107 sales compared with 81 last year. In Mount Maunganui/Papamoa, there were 59 sales - five ahead of last June - and in the Western Bay district, 51 houses changed hands compared with 43 in June last year, according to latest New Zealand Real Estate Institute (REINZ) figures.
But June was behind May, which was the best May since 2007 for sales.
The median selling prices remained steady, $420,000 for Mount and Papamoa, down from $430,000, and $350,000 for the rest of the city, an increase from $330,000.
Western Bay district, including Katikati, Omokoroa, Te Puna and Te Puke, also had a fall in sales from 61 in May to 51 last month, even though the median rose to $400,000, from $365,000.
Once again, the market was ahead of last year with 43 sales in June 2010.
Real estate bosses are confident of a continuing improvement in the market.
Max Martin, Harcourts franchise owner, said: "You expect things to be a bit quieter at this time of the year but we are getting inquiries, particularly from Christchurch, and I think sales will pick up in the spring."
He went one step further: "I believe we have a positive 12 months ahead of us.
"I expect to see more people from Christchurch, once they have the money in their pockets [from earthquake claims].
"There's also a lot of money going into the Waikato. The dairy farmers have had a good season with production and prices, and even the sheep farmers are getting $200 a lamb.
"People always want to retire here and will continue to buy," Mr Martin said.
Ross Stanway, spokesman for Eves Realty and Bayleys, said he was not surprised the residential property market eased back in June after two strong months.
But the market was going through an interesting period as it was starting to turn in favour of the sellers, he said.
"We've seen a buyer's market but there's now more [potential] buyers about than the number of homes for sale. There are early signs of increased competition amongst buyers and I'd say the market is at an equilibrium point presently.
"I believe there is real pent-up buyer interest and it will be interesting to see how the market develops over the next two months," Mr Stanway said.
REINZ chief executive Helen O'Sullivan said the institute was getting strong indications from agents in many regions that the supply of properties was really tightening.
"Rather than an influx of buyers, we are seeing very low levels of listings as sellers continue to sit on their assets," she said.
That was backed up by the latest BNZ-REINZ market survey of real estate agents, which also indicated that the shortage of listings was now the main reason holding buyers back from buying a property.
A net 34.2 per cent of respondents cited a lack of suitable properties available for sale as the main reason holding buyers back, up from 22.4 per cent in the previous month's survey.
Auckland, Manawatu/Wanganui, Canterbury/Westland and Taranaki were all reporting shortages of properties for sale. Similar concerns had not yet arisen in Northland, Hawke's Bay, Otago and Southland.
The national median days to sell changed by one day from 45 in May to 44 days in June. In June 2010, it was 45.
Nationally, 5229 unconditional sales were recorded last month, up by 654 on June last year but down 534 on volume in May this year. The national median house price rose by $10,000 to $360,000 in June.