The average house price in Tauranga increased by $41,000 in March, according to the latest figures from the Real Estate Institute of New Zealand.

In March 2013, the average house price in Tauranga sat around $347,000 but that figure jumped to $388,000 in March 2014.

The average price is also up compared to February, 2014, when it was sitting around $377,000.

The Mount Maunganui and Papamoa area also experienced a rise, with average house prices sitting around $450,000 in March 2014, an increase from $425,000 in March, 2013.

REINZ regional director Phillip Searle says the median price across the Bay of Plenty increased $24,000 compared to March 2013 to sit $1000 below the new high recorded in February.

'Prices increased the most in Tauranga, Hamilton and Waikato regions. 'The median price trend remains steady, while the days to sell continue to improve.”

Phillip says the number of first home is lower than March last year, indicating he LVR restrictions are having an effect, even during the busiest month of the year for real estate agents.

'Although some vendors are looking for higher prices the market is not as willing to support the price increase.”