Home values in Tauranga City have decreased by 0.6 per cent in the last three months, but remain 3.6 per cent higher than they were in September last year.

Despite this, prices remain 6.2 per cent below the peak of 2007.

House prices in the Tauranga have dropped, but those in the Western Bay of Plenty area have increased.

According to the latest QV statistics, values in the Western Bay of Plenty increased by 1.2 per cent in the last three months and are six per cent higher than they were this time last year.

QV Home Value registered valuer Mairi Macdonald says the Tauranga market is steady, with good levels of enquiry and interest in all levels of housing. However, sales volumes are down from past months.

Mairi says: 'Demand for vacant sections is good and has increased over the past six months.

'There are an increasing number of properties coming onto the market, however the number of listings is still down on this time last year which is creating more competition amongst buyers.

'In the Western Bay of Plenty things are quiet and there has not been much activity. In Te Puke and Katikati we are seeing demand for rental property from seasonal workers, especially as kiwifruit industry picked up after Psa issues.

'Omokoroa is stable and there is continued demand for well-presented property there, however sales volumes and values there have decreased slightly over the past few months.”

Nationally, residential property values for October increased 5.9 per cent in the last year and 1.1 per cent in the last three months, which is the slowest rate since October 2012.

This means they are now 16.9 per cent above the previous market peak of late 2007.

When adjusted for inflation the nationwide annual increase drops slightly to 4.8 per cent and values remain 0.2 per cent below the 2007 peak.

QV national spokesperson Andrea Rush says although residential property values have risen at the slowest rate nationally since 2012, they have increased in many centres around the country over the past three months.

She says: 'Home values have accelerated again in Auckland since July, at a rate not seen since last year. Christchurch has also continued to increase but at a slightly slower rate.

'Wellington has also seen values rise in parts of the city. However, home loan approval rates have not increased, listings are also lower than normal for spring and sales are around 12 per cent below what they were this time last year.”

'The LVR restrictions mean banks are targeting well established customers rather than new lenders. Recent research shows investors currently account for between 40 and 50 per cent of all property sales in New Zealand.”