Increasing levels of interest in the Mount Maunganui and Papamoa housing market are behind a 17.2 per cent increase in house sales in the last 12 months.

Real Estate Institute of New Zealand figures for May show sales in the Mount Maunganui/Papamoa area are up from 87 in May 2013 to 102 last month.

102 properties were sold in Mount Maunganui/Papamoa last month.

Last month's also registered a slight increase on the month before, up three from 99 sold in April.

The average house price is also up 2.4 per cent on April, rising from $450,000 to $461,000 – a six per cent increase on the $435,000 last May.

Realty Services Group chief executive Ross Stanway says not only is the Mount and Papamoa showing positive signs, but interest is rising in the wider BOP areas of Te Puke, Maketu and the Kaimai Ranges.

'Tauranga, or the other side of the bridge, is a different picture in that the median has decreased slightly and volumes have decreased,” says Ross.

In Tauranga the average sale price of $355,000 last month is down from $360,064 in April and $363,000 in May 2013.

Sales volumes are also down - 15.2 per cent on last May, from 151 to 128, but ahead of the 114 recorded in April.

He says it is interesting to see fewer properties on the market than in previous months, as home owners seem hesitant to sell despite a significant number of buyers about.

'It doesn't mean that it's a sellers' market, it's not. But certainly there are buyers out there, but they are pretty fussy.”

Ross warns the recent official cash rate increase may also pose as a warning for property sellers.

The Reserve Bank last week raised the official cash rate by 25 basis points to 3.25 per cent, the third rise this year, with more signalled to come.

'I think that people thinking of selling their properties should take heed of that because every time there is an interest rate increase it cuts another level of buyers out of the market it's just a fact.”

REINZ regional director Philip Searle notes Waikato/Bay of Plenty agents are reporting little change in the low proportion of first home buyers, while investors appear to be more active where good returns can be secure.

'Listings remain tight across the region and attendances at open homes are reported as patchy,” says Philip.

Nationwide there were 6572 houses sold, an increase of 15.9 per cent on April, but down 14.8 per cent compared to May 2013.

The national average price is $430,000, an increase of $38,000 compared to May 2013, but a fall of $2250 from April 2014.