Mr Power said last year's loan-to-value (LVR) restrictions had some impact on the investor market, but not to the same extent as the higher-priced centres.
He said the average sale prices in Taupo, Napier and New Plymouth were slightly above Rotorua's, yet the statistics showed Rotorua to be slightly ahead on the increase over the 2007 previous peak compared to those areas.
"So it could be said that the gap is closing."
Speaking generally about the market, First National principal Ann Crossley said the end of January would be a good "temperature gage" of the market.
She said there had been a slight slowing effect before Christmas but she believed that would pick up following the holiday period.
She said they were still seeing the impacts of last year's restrictions requiring 40 per cent deposits on investment properties.
"We certainly have a noticeable increase in stock level on the back of investment properties that aren't selling."
However, Mrs Crossley said she expected the next few months to continue to be strong in the Rotorua market.
"I can't see any change in all the drivers like population growth, job security and interest rates..."
Professionals McDowell Real Estate Rotorua owner Steve Lovegrove said the feeling was upbeat about 2017.
Mr Lovegrove said December was quite a strong month in terms of listings and sales, and while buyer demand had softened slightly, he had expected that.
"Over the last four or five days there has been a noticeable increase in buyer inquiry activity.
"Already the office is as busy as it ever was and we've only been back for two days officially. There were more inquiries over the Christmas break than we've had."
Mr Lovegrove said while there were still more buyers than there were sellers in the market, his company was starting to see more balance between the two.
Rotorua average house values, December 2016
Average value $375,187
27.1 per cent higher than a year ago
Risen 5.9 per cent over the past three months
Values now sit 27.8 per cent above the 2007 market peak
