QV's residential price index for July shows that property values in Tauranga are 1.7 per cent lower than at the same time last year.

QV Valuations registered valuer Shayne Donovan-Grammer says values in recent months continue to be steady.

'There has been no significant change to the Tauranga market over the last month or two,” says Shayne.

'Feedback from real estate agents suggests there is a shortage of listings for central, tidy, lower to mid value properties.

'I am seeing an uplift in first-home buyer activity. They are encouraged by the continuation of low interest rates, a relaxing of credit criteria and the odd seller more than willing to compromise.

'Second-home buyers and investors are more reluctant to enter the market with many not having the appetite to take on more debt in what is a constrained market.”

Shayne says this is not necessarily the right approach.

'For the buyer who is willing to put in the leg work there are some good buys out there presently.”

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 July was $432,461.