The Rotorua property market may be showing signs of coming out of hibernation with average asking prices increasing by nearly $50,000 in the past 12 months.
Latest figures for the region from property website Realestate.co.nz showed the average asking price up from $295,315 in December 2012 to $344,889 in December 2013.
However, the average dropped from $353,293 in the final two months of 2013.
Professionals McDowell Real Estate director Phil Hereford said the upward trend in asking prices in 12 months reflected an improving local economy.
"I'm not sure if the increase is indicative of an increase in true value of the property but it does show an upward swing which indicates an improvement overall in the economy," he said.
New house listings in Rotorua dropped slightly from 120 in December 2012 down to 109 in December 2013 - there were 202 in November 2013.
Mr Hereford said the 50 per cent decrease in listings between November and December showed the public refocused priorities in the lead up to Christmas and New Year.
Both December and January were traditionally treated as "light months" with two to three weeks taken up with holidays, he said.
"Traditionally clients refocus away from property before Christmas through to New Year," he said.
The drop of about $10,000 in asking prices between December and November 2013 was "too minor to measure", he said.
Nationally, average asking prices tapered off in December as new listings fell to record lows - possibly causing a housing shortage in the coming year, Realestate.co.nz marketing manager Paul McKenzie said.
The number of new property listings was 6 per cent down in December 2013 compared to December 2012 with only 8010 new properties - the lowest number of new listings on record since 2006, he said. Asking prices were trending upward with a 7 per cent increase in the 12 months to December 2013. Mr McKenzie said price averages should increase during 2014.
Taranaki and Canterbury were the top regional performers with record high asking prices while listings in Coromandel were up 16.6 per cent as average prices tumbled 12.8 per cent.
New listings dropped in 13 regions last year compared to 2012. A total of 131,474 new properties came on the market in 2013, down 0.4 per cent from 2012.