QV's Residential Price Index for November shows that property values in Tauranga have held over the past few months.

Unlike most other major centres, Tauranga did not see significant value gains in 2009. Values are now 0.9 per cent below where they were at the same time last year, and 11.4 per cent are below the market peak of late 2007.

QV Valuations valuer Shayne Donovan-Grammer says the Tauranga market is slow.

'It has been difficult for the Tauranga market to gain any traction this year and the spring/summer flurry of activity hasn't really eventuated so far,” says Shayne.

'Sellers have resisted dropping their prices, although realistically-priced and well-presented homes have tended to sell more readily.

'On a positive note, values have held better than predicted in 2010 and interest rates have remained steady.

'Tauranga, with its predicted population growth, is still one of best places in New Zealand to own property, but the market needs to be patient before it can expect another cycle of capital growth.

'Currently there are too many households with high debt levels, making it tough to either service mortgage repayments or sell, as debt is often higher than net property value.

'This is because of past lending ratios and a market that has come back 10 per cent or more since the peak.

'For a lot of would-be buyers, it will take time to get back into balance before activity can resume.”

The average sales price for Tauranga in November was $409,100.

About QV

QV's Residential Price Index is calculated using sales data from the three months leading up to the month being reported.

It is not the same as the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets.