House prices in Tauranga remain relatively flat with values currently 0.6 per cent above the same time last year.

Figures released by QV.co.nz, show house prices have seen a slight rise of 0.9 per cent in the last three months.

House values remain flat as other cities mark an increase in current prices.

'In previous years we have seen the market slow leading up to December and this is looking to be the case this year as well with things seemingly just ticking over,” says valuer Richard Allen.

The average house price in the Western Bay of Plenty is $409,189, compared the average house price in Tauranga which is $432,679.

The latest monthly property value index shows that nationwide residential values for September have increased 8.4 per cent in the last year, and 2.6 per cent in the last three months.

House prices are now 9.2 per cent above the previous market peak of late 2007.

When adjusted for inflation the nationwide annual increase drops a little to 7.7 per cent and values remain below the 2007 peak by 4.9 per cent.

'The LVR caps just applied by the Reserve Bank are intended to help slow down the rapid increase in values by limiting loans to people with a low deposit,” says QV.co.nz research director Jonno Ingerson.

'This will take some time to fully impact the market as the main banks had a large number of pre-approved loan applications in the pipeline. This is likely to cause a short term flurry in activity as people rush to secure a property before their pre-approval expires.”

He says while the LVR caps may have an impact on first home buyers with limited deposits, it is likely to have little impact on other buyers.

'What remains to be seen is whether the overall activity and price levels in the market are affected, particularly in areas with more affordable properties.”