"The supply of properties is expressed as 'number of months' worth of stock', which is currently at its lowest point since 2008 and has dropped from about 10 months' worth in January to less than three months' worth of stock in September.
"The statistics from REINZ don't show an increase in prices yet, which is due to the method of data analysis, but we are seeing properties selling for significantly more than 12 months ago.
"We expect this trend to continue for some time as the interest rates remain low, and there appears to be more confidence in Rotorua and in the property market.
"The growth is driven by a number of buyers, including investors, first home buyers with KiwiSaver and people choosing Rotorua as a place to live. I believe Rotorua still has some catching up to do and I don't think we have seen the end of this increase in activity yet," Mr Oppers said.
Duncan Realty residential specialist Brendan Ryan said the company had seen a buoyant market for the past three months and hoped to see it continue.
"It has been quite a change from this time last year, when properties would sit on the market unsold. The way the market is going at the moment, sellers are seeing their properties go within two or three weeks, if not sooner.
"I am hoping this will not be a case of a positive few months then a backward slide. It would be nice for this upward trend to continue and Rotorua gets some steady growth."
Mr Ryan said one of the biggest factors he had noticed influencing the market was out-of-town buyers. "Lots of sales are going to people buying outside the city, especially from Auckland. It is amazing how much action is going on in the $200,000 to $400,000 market."
Professionals McDowell Real Estate sales manager Phil Hereford said the significant lift in sales activity had resulted in a corresponding drop in the number of properties for sale.
"The market has gone from sustaining 1000-plus properties for sale down to 550 to 580 on the market at present. This has occurred over a six-month period and in that time Rotorua has become very much a sellers' market."
Mr Hereford said many properties listed today could end up with a contract in place within a matter of days.
"Buyers are so often finding themselves in a competitive environment resulting in multi-offer situations, with two to four buyers trying to secure the same property," Mr Hereford said.
The consequence of this level of activity is the property owners are getting very strong outcomes with regard to price.
"The homeowners have been on the other side of the equation for a very long seven years and it is great to see them now being rewarded at this very buoyant time.
"Another satisfying aspect of this increased activity is that it is happening right across the board, from the lower to higher value homes, in all sectors - investors, first home buyers, speculators and people upgrading," he said.
Rotorua house sales
- June 2014: 57
- June 2015: 104
- Increase: 82 per cent
- July 2014: 72
- July 2015: 120
- Increase: 67 per cent
- August 2014: 71
- August 2015: 155
- Increase: 118 per cent
