"We have seen unprecedented growth in house prices over the past 12 months," Forsyth said. "There has been a huge move upward so a 9.8 per cent increase reflects that."
He said through December, January and into February there had been sound inquiries which correlated with the quarterly increase.
"We've certainly felt prices have been maintained, if not increased, so to have that conformed by the latest figures is great."
Forsyth said a close eye was always kept on the Auckland real estate market as changes in the city usually took about nine to 12 months to filter through to Rotorua.
"It sounds like the Official Cash Rate (OCR) will be staying low for the foreseeable future which, coupled with good confidence and good opportunity in Rotorua, means everything is right for a continuation of the past three months."
Rotorua First National principal Ann Crossley also said she didn't expect to see much of a change in the local market.
"We have recently done some numbers," Crossley said. "Last week we prepared 25 property offers and four of those were multiple offers. In one case there were five offers on one property and four on another – one was a first home-buyer sale and the second was an investment."
She said the numbers suggested there was still a stock shortage in Rotorua. "And while a shortage remains, the pressure will continue."
Crossley said the latest quarterly figures included December which was often a slow month. "However December just gone resulted in a lot of activity at the top end of the market which would have made a difference to the average price.
"I don't see things changing much. I think it will be a bit gentler as opposed to the crazy good we've been experiencing." Bayleys Waikato, Bay of Plenty chief executive Simon Anderson said, unlike Auckland which appeared to be taking a breath, Rotorua continued to be a "very positive story".
"We're still not seeing the numbers of transactions we once were but we are seeing a number of high-value transactions," Anderson said.
"There is still a lot of interest in the Rotorua market and we are starting to see first time home buyers and investors come back into the mix.
"Rotorua has really grown some legs. In turn there are better jobs, better incomes and better homes."
