The median house price for homes sold in Tauranga during May has increased by $7000 since the same month last year, according to figures released by the Real Estate Institute of New Zealand.

The figures show the median house price for residential buildings sold last month was $363,000 – an increase from the median house price of $356,000 in May 2012.

House prices in Mount Maunganui/Papamoa also increased from $410,500 in May last year, to $435,000 in May this year.

Bay of Plenty district forum leader Dickie Burman says the increase is a continuation of price growth throughout the region in recent months, but sales are still behind the 10 year average.

'It's been strong under the $500,000 range, even maybe under the $400,000 mark.

'If you look at total sales in the Waikato/BOP area we are still behind the 10 year average. In the region 10 years ago there were 1600 properties sold in the month of May, and we have just ticked over 1000 now.

'It's not as buoyant as it used to be, but it is still steadily increasing.”

Despite this, Dickie says there are signs of confidence returning in the market.

'There is more activity but that's probably more of a feel of what is happening around the country.

'As the market picks up around the country no doubt we will be dragged along with it.”