However he said the "key market indicators are all really positive", including low interest rates, the spinoff from net migration, and great business confidence.
Bayleys Havelock North sales manager Daniel Moffitt said the market was still extremely positive, and they were receiving multiple offers on most properties.
The average house price could reach $400,000 if it continued the way it was going, said Mr Moffitt.
There was still lots of interest coming from outside the region.
"With industries like pipfruit, businesses are attracting people and tourism is positive, more people are moving here and creating that demand."
Leaders managing director Elanor MacDonald said the number of houses for sale under $500,000 had dropped again, and they were seeing significant interest in new properties coming to the market. "Purchasers do their homework and know exactly what a good property looks like," she said.
QV home value Hawke's Bay registered valuer Bevan Pickett said: "There is still a clear lack of listings available making it slim pickings for buyers, and meaning there is a lot of competition for those properties on the market, making it a sellers' market currently.
"In terms of value growth most price brackets are seeing significant increases in value, however the entry level and investment sector of the market is seeing the highest rate of growth."
The latest monthly QV House Price Index shows nationwide residential property values for April have increased 12 per cent over the past year.
When adjusted for inflation, values are now 16.9 per cent above the previous market peak of late 2007.
