Principal agent at LJ Hooker Rotorua, Malcolm Forsyth, said the drop was understandable being December and "the Christmas side of things".
"Other things take precedent at this time."
He said he was surprised as the activity for LJ Hooker Rotorua had not diminished over the Christmas period, but was wary of looking at only one month's data rather than over a period of time.
"January is looking strong with a continued strong market. We've had good inquiries of people coming onto the market, that's what we need. We're really looking forward to 2017."
Anita Martelli, co-owner and principal at Ray White Rotorua, said she wasn't surprised at the drop as November was a record month for Ray White.
"It was super busy, a very good month."
She said Christmas and December being a shorter trading period as solicitors closed could also account for the drop in the volume of houses sold.
Looking forward to 2017 Mrs Martelli said there was lots happening.
"What's really great is people from out of Rotorua are saying they want to move here, it's a positive for the city."
Mrs Martelli helped sell Lidi Schiefelbusch and Darren Hamilton's Ngongotaha home in December "after 23 very happy years". said Ms Schiefelbusch.
"We love Rotorua but we're ready for a change. There is no negative reason [to sell], we just wanted a change from lake to ocean. We had great neighbours and it's a great neighbourhood."
Ms Schiefelbusch said they would be moving to Ohope but they would "always be coming back" to Rotorua to see family and investment properties they owned.
"We had a clear plan what we wanted to do; sell by Christmas so we can spend our last Christmas and holiday with friends and family in the house . . . it was on a deadline sale."
The house was on the market for three weeks with three open homes each week, Ms Schiefelbusch said.
"It was the [outcome] we hoped for, we were prepared to work hard as well as the agents worked hard. We believe a consolidated effort meant everything was put in the right way."
Steve Lovegrove, co-owner and principal of McDowell Real Estate, said while there had been a drop in the volume of sales the overall value of property in Rotorua was not going down.
"Year on year the values are increasing, I don't think for a minute it is reflective as house values are not falling, it's the type of properties selling."
Mr Lovegrove said the effect of the loan-to-value ratio rule change could have affected the house price drop in December.
"The change meant in November investors were taken out of the marketplace with a shift to higher value properties, the mum and dad properties, selling rather than the lower value properties, such as first home buyers.
"There is a positive vibe out there. We've had strong numbers come through our open homes. I think this year will be consistent."
With it being election year Mr Lovegrove said he thought it might create some resistance to the marketplace with people being a bit more conscious.
Rotorua house sales in December
- Median house price was $295,000, dropping 10 per cent
- 110 houses sold in December compared with 136 in November
- The volume of houses sold was down 19 per cent.