Tauranga property values have risen again over the past month after three previous months of slight declines.

Current values are 0.7 per cent higher than three months ago, a modest 1.7 per cent higher than the same time last year, and 10.6 per cent below the previous market peak.

Property values are improving across the country.

Nationwide residential property values have risen again in May according to the latest QV index. This is after values had remained relatively steady for a couple of months.

As a result, values are up 1.0 per cent over the past three months, 3.9 per cent up over the past year, and are now 2.0 per cent below the previous market peak of late-2007.

Jonno Ingerson, QV.co.nz research director says houses in most of the main cities and towns have increased in value over the past month, with Auckland leading the way.

This more widespread increase in values is in contrast to two or three months ago when values in many areas appeared to be flattening off.

'Sales activity has remained relatively strong for the past couple of months, with no evidence yet of the usual decline in sales seen over winter. The relatively low number of new listings and sales over the past few years are leading to an increase in pent-up demand. There are now buyers who have been looking for a house for some time and either cannot find something that meets their needs, or are being out-bid by other keen buyers,” says Jonno.

'First home buyers and investors remain active in many parts of the country, attracted into the market by low interest rates and perceived affordability.

"Despite this increase in activity many buyers remain very cautious, wary that economic conditions in New Zealand could worsen if the situation in Europe doesn't improve."