A slight rise in the number of Western Bay of Plenty properties sold last month has a real estate manager warning that while things 'are on the up” buyers are remaining cautious.

The Real Estate Institute of New Zealand's property market report figures also show median house prices, except for Tauranga, are up year-on-year.

Buyers remain cautious in the Tauranga property market.

But REINZ district coordinator for Western Bay and Tauranga, Bayleys Tauranga manager Dickie Burman says there is definitely no boom.

'Obviously Tauranga is still steady, with Mount Maunganui being a stronger market with the numbers over there recently, coming off some lows as well – but I wouldn't say it is a boom in the market,” says Dickie.

'I don't think that is the case – there has been some increased activity but let's take one month at a time because there is still a little bit of nervousness out there.”

REINZ data shows the number of properties sold last month in the Western Bay was 83 – down from 100 in March, but up on last April's 64.

This was also the case for Mount Manganui and Papamoa with 95 properties sold last month, down on 123 in March, but up on last April's 73. In Tauranga 136 properties were sold last month, down on 163 in March, but up on April 2012 with 97.

Heading into the traditionally slower house sale months during winter, Dickie says there will be continued interest from buyers right through this year.

'I think we're playing a bit of catch up.

'If you're looking at April compared to March the numbers are down but they're up on April last year – I think you'll find there is obviously more people back in the market buying, which is a combination of people getting more confident coming out of the market down turn, interest rates being down which helps people borrowing [money for a mortgage] and good choice of property on the market,” says Dickie.

Latest REINZ figures show median house prices shot up last month from $337,500 in April 2012 to $345,000 in March 2013 to $380,000 last month in the Western Bay. Prices in Mount Maunganui and Papamoa rose from $380,000 to $425,000 to $440,000 respectively.

But while Tauranga's median increased from $343,000 in April 2012 to $347,000 in March, it slipped to $327,500 last month.

Dickie says while there is a lot of activity in the median price range – thanks to some good quality family homes providing a strong market – people are still being cautious.

'The numbers of houses sold show activity in play and that can be a combination of increased activity by buyers or sellers' prices being adjusted to a more palatable level.”

According to REINZ, sales by auction in Waikato/Bay of Plenty accounted for 7.2 per cent of the national total. This is down from 8.3 per cent in March and 11.1 per cent in April 2012.

'Percentage-wise auctions might be down but it's a growing part way of how real estate is being transacted, its lot more transparent and gives vendors opportunity to get an unconditional sale so days on market are lower – if it sells. In this market, it's hard to gauge what properties are worth ... and they don't always sell on auction day,” says Dickie.

'I think we're still seeing a ‘steady as we go' pattern – prices aren't running away and if you seasonally adjust the data for February to April is always a better time for sales, it's a more buoyant period because people's places look best in summer and early autumn and spring when sales improve again.”

Dickie believes Aucklanders are among a steady stream 'people from all over the place” who come to buy homes in the Bay.

'We're certainly not seeing [the boom] Auckland is seeing but there are people coming here – though they are still being cautious with their money.”

REINZ regional director Philip Searle says the Waikato/Bay of Plenty region is seeing solid growth in sales numbers, particularly around Hamilton and the Western Bay of Plenty, although price growth across the two provinces remains patchy.

First-home buyers and investors were more active in the market and a gradual improvement in the number of days to sell indicated an overall improvement in the market, he says.

'The trend in sales volumes has moved back to improving, while the trend in the number of days to sell has improved to trending sideways. The trend in the median price continues to improve slowly. Overall the trend for the region is now improving,” says Philip.