House values in Tauranga City have accelerated by 4.1 per cent over the past three months and 7.3 per cent year on year.
For the first time they have ticked over levels seen in the previous peak and are now 0.8 per cent higher than they were in 2007.
Values in the Western Bay of Plenty have also risen by 3.9 per cent over the past three months, 4.8 per cent year on year but they remain 3.3% below the previous peak of 2007.
QV homevalue Tauranga Registered Valuer David Hume said there had been significant demand and increasing property values across Tauranga and the Western Bay of Plenty over the past three months.
"Homes in Tauranga and Papamoa are now selling much more quickly than they have for several years and value levels are now considered to be at or above the 2007 peak."
"There is very strong demand from out of town buyers with approximately 60 per cent of all people at open homes now from Auckland."
"This has created a degree of panic for local buyers not wanting to get priced out of the market with the $300,000 to $500,000 range is seeing the biggest demand, also fuelled by historically low interest rates."
"A much higher proportion of properties are being sold at auction as real estate agents are struggling to correctly price properties."
"There has also been a sharp increase in sales in the $1 million plus range, as lower value benchmarks increase. Real estate agents reporting a 100 per cent increase in sales in this price bracket in comparison to 2014."
"In the Western Bay of Plenty, the market is strengthening, sales volumes are up across the board and buyers are coming from far and wide."
"There's been a significant increase in demand for property in Omokoroa in the last two months and the market there is frantically busy and there is a shortage of listings."
"The recovery of the Kiwifruit industry has also exposed a real lack of rental accommodation in Te Puke which has resulted in increasing demand from investors looking to purchase rental properties for good rental returns."
"Paengaroa has seen values of vacant section in new residential subdivisions increase by 50 per cent in the last 12 months."
"There is also strong demand in the $600,000 to $750,000 range in Te Puna with a significant increase in demand over the past two months which has resulted in a rise in home values there."
