An increase in buyers wanting expensive homes is causing median sale prices in Tauranga, Mount Maunganui and Papamoa to rise.

Real Estate Institute of New Zealand statistics released this week show the median house price in Mount Maunganui and Papamoa has jumped $40,000 in the last year.

House prices in Mount Maunganui and Papamoa are on the rise.

Tauranga median house prices also rose, though not to the same extent, increasing $17,500 – from $330,000 in August 2012 to $347,500 in August 2013.

The Mount Maunganui and Papamoa median rose from $390,000 to $430,000 in the same time.

Bayleys Tauranga real estate agent Dickie Burman says the city's property market is remaining relatively steady, and attributes the rise in median house prices to a higher demand for expensive homes.

'The sales volumes are stable, they haven't changed much.”

Sale volume rose slightly (2.7 per cent) in the last 12 months, REINZ statistics show. A total of 114 Tauranga homes were purchased last month, up from 111 in August 2012. Mount Maunganui/Papamoa saw a slightly bigger increase, from 75 purchases in August 2012 to 81 last month.

A rise in first home buyers purchasing homes in the region is contributing to this slight rise, says Dickie, and he predicts these volumes will continue to increase, or at least remain steady, as more houses are put on the market during summer.

'In the warmer months, you generally see an increase in listings.”

The rise in sale volumes follows a national pattern, with an 8.5 per cent increase across New Zealand in the last year.

REINZ Chief Executive Helen O'Sullivan says the August national sales are also coming mostly from first home buyers.

'Agents from around the country are reporting strong activity from first home buyers moving to secure properties ahead of the Reserve Bank's LVR changes.”

Across the wider Bay of Plenty/Waikato region, days to sell improved by three days in August compared to July, moving from 55 days in July to 52 days in August.

Compared to August 2012 the number of days to sell eased by two days. The average number of days to sell during August over the past 10 years has been 48 days.

REINZ regional director Philip Searle says first home buyers across the region are acting with more urgency ahead of the LVR restrictions 'with an increase reported in the number of investors in the market attracted by lower prices and better returns”.

'Listings remain a problem across the region, and although listings are expected to pick up in Spring, stock levels are expected to keep falling."