Average house prices in Tauranga are approaching the $700,000 mark, according to the latest QV House Price Index statistics.

Tauranga home values increased 3.2 per cent year on year or $21,528 from an average value of $672,197 in December 2016 to $693,725 in December 2017.

After dipping in November, values in the city had begun rising again by December and values rose one per cent in the final quarter of the year.

Meanwhile, the Western Bay of Plenty market has seen sustained growth throughout 2017 and rose 9.1 per cent in the year to December or $52,185 from an average value of $571,520 in December 2016 to $623,705 in December 2017.

Values rose 1.4 per cent over the past three months.

Nationally, it was a disparate year for residential property values with a general trend of slowing in the rate of growth due to LVR speed limits, stricter retail bank lending criteria and uncertainty ahead of the election, along with periods of rapid value increases in some areas and decreasing values in others.

Overall the nationwide average shows residential property values increased 6.6 per cent or $41,660 during 2017 from $627,905 in December 2016 to $669,565 in December 2017.

The average national value increased 3.6 per cent over the final three months of 2017.