The Tauranga housing market continues to rise, with home values in Tauranga City up by 27 per cent year on year and 5.9 per cent over the past three months.

The average value in the city is now $651,725.

Western Bay of Plenty home values have risen a considerable 33 per cent over the past year and 10.5 per cent over the past three months alone.

The average value in the district is now $596,782.

Registered valuer David Hulme says the housing market appears to have improved after a slow period leading into spring, when there was an extended period of bad weather and the announcement of new LVR restrictions.

'However the frenzy that was witnessed earlier in the year has subsided to more normal levels of activity and demand with properties going to a two to three way multi-offer scenarios as opposed to a six to seven offers,” he says.

'There are still a limited number of properties listed for sale on the market and there hasn't been the usual strong spring surge in listings and this is also fuelling demand.

"It appears there is also is an increasing number of retirees from Auckland moving to the Bay of Plenty, effectively downsizing and freeing up equity for retirement.”

He adds recent figures show rents have risen about 30 per cent in the last two years.