Rotorua property values are on the rise, with a 4 per cent increase in the past three months.
The average value of a residential property in the district is now $283,391.
The latest monthly QV House Price Index shows that nationwide residential property values up to the end of September increased 12.6 per cent over the past year, which is the fastest rate since October 2007.
Rotorua's house values were up 2.3 per cent over the past 12 months.
Values nationally are now 30.9 per cent higher than in 2007 but Rotorua, while experiencing an increase, is lagging, with values still 3.5 per cent down on 2007.
"Everyone's busy and saying it's been a long time coming," said Mike James, a registered valuer at Telfer Young.
"I'm busier than ever.
"We get asked by purchasers, vendors and banks. We are seeing an increase in residential property values and lifestyle properties often selling for at least asking price or above in some instances."
He said he had been a valuer for nine years and had experienced the last peak, plateau and drop.
This latest increase was coupled with a reduction in available properties and the number of properties being listed, according to www.realestate.co.nz
"Essentially it comes down to supply and demand. Demand is being fuelled by more people moving to and moving back to Rotorua to live. People have now saved enough deposit to be able to purchase, with investors purchasing and first-time investors entering the market," Mr James said.
"The rental market is also tight which is seeing room for rent increases. Purchasers are getting desperate to purchase and we are seeing many properties selling for more than asking price and above both vendor and agent expectations due to the motivation of purchasers to get a property."
He said there had also been an increase in land sales with some sections that had been sitting on the market for years now selling.
"Mortgage rates are very low, making borrowing money to purchase cheaper than it has been for a long time.
"All these factors are contributing to increasing sale values. With more people being forced out of Auckland, and now Tauranga, due to values being too high we could see the market remaining like this for some time."
The QV figures showed nationwide sales volumes had been tracking at between 36 per cent and 43 per cent higher over the past three months for the same period last year.
Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys Real Estate, said it was significant that Rotorua was part of the increase in value.
"Throughout the greater Bay of Plenty it's a very promising picture," he said.
"I think that people are beginning to realise there is really good value for money in Rotorua and when you have enough people acting on that, sales volume and prices are going to go up."
Also this week, listings website www.realestate.co.nz reported inventory was down on previous years, reaching its lowest level since it started keeping records in 2007.
This year, in data released to the Rotorua Daily Post, there had been an average of 134 properties listed on the website each month.