The Tauranga property market appears to have stable values, although they are low.

This is the reading from QV's Residential Price Index for January, which shows property values are down 2.2 per cent over the past year in Tauranga. The prices are down, however, over 13 per cent compared with values in 2007.

QV Valuations Shayne Donovan-Grammer says there is no sign of an upward trend.

'Over the last couple of months values have continued to soften,” says Shayne.

'At this stage there are no indicators that suggest the market will improve in the coming months.

'Whilst there is a lack of activity, it is not uncommon for this time of year.

'Speculative property, namely apartments and sections which were developed during the economic heights a few years ago, are in oversupply and therefore are experiencing the worst during the current downturn.

'There has been a noticeable migration of both buyers and tenants to locate near well regarded schooling leading into the new school year.

'As the city grows it will become more of a factor in buyers' decision making in coming years.”

QV's Residential Price Index is calculated using sales data from the three months leading up to the month being reported.

It is not the same as the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets.

The average sales price for Tauranga in November was $400,041.