"This has been particularly evident in the past month. Buyers are being more cautious than ever but, because of the lack of choice, if a well-presented property comes on to the market they are prepared to pay an exceptional price.
"This is the FOMO [fear of missing out] factor," he said.
"People accept that if they do not want to miss out on the home they will have to reveal the entirety of their budget. It's about buyers putting their best foot forward to secure what they want."
Lovegrove said it was an interesting time within the market and, heading toward winter, the lack of stock could be exacerbated.
"If this is the case, it will continue to push the supply and demand which, in turn, will put pressure on prices."
He said the 7 per cent year-on-year increase was not unexpected and should be considered a "good result".
"That's more than Waikato or the Bay of Plenty."
While not wanting to pick what the winter and spring markets would look like, Lovegrove said the market had tracked "slow and steady" during the first four months of the year and he expected that to continue for the remainder.
"Sellers can be confident properties will continue to sell in a timely manner."
Ray White principal Anita Martelli said the market continued to experience "good growth" and that there was no sign of that changing in the near future.
"There is obviously a bit of pressure on buyers as stock numbers remain low," Martelli said.
"While new stock is coming on [the market], existing stock is still selling quickly."
She said multiple offers continued to be made for most properties.
"I can't see this changing. Interest rates are still competitive and Rotorua is still a desirable location."
LJ Hooker principal Malcolm Forsyth said looking at the 2.2 per cent increase in value over the past three months as opposed to year-on-year figures, there had been "a bit of slowing" down within the marketplace.
"To be fair that was expected," he said. "But that can be contributed to the lack of stock. We have people saying they want to make a move, they're ready to make a move, and they know their home will sell but who are not confident they will be able to find anything else to buy."
Forsyth said Rotorua had seen some real growth but it was not something that would continue forever.
"I expect a bit of levelling out but not necessarily a drop.
"There has been a cooling in Auckland and that is trickling down into the Waikato. It will happen here, possibly toward the end of the year."
He said new subdivisions had opened and interest was high, but "until there are more properties available, the shortfall will continue to drive the market".
"Going a few years back I recall homes were selling for $280 to $290,000 and people were saying they couldn't go any higher than that," Forsyth said.
"I think people are asking the same question now."
Simon Anderson, chief executive of Realty Group which operates Eves and Bayleys, said Rotorua had experienced incredible growth over the past two years.
"It had to start cooling at some stage and that's what is happening now," Anderson said.
"However, the lack of stock still being experienced in Rotorua means the market remains good for sellers."
He said the current market was now what would be considered "normal and sustainable" as opposed to the "frantic" market of 18 months ago.
