Listing numbers shot up in January and investors disappeared from the market almost completely, Todd said, citing increasing interest rates, tax-deductibility changes and lending tightening as factors all working to squeeze demand.
"We've got all of these factors that seem to have stabilised the marketplace.
"There is no sign of price reductions of places happening at this point, but we're not seeing crazy offerings."
Todd said there were occasions last year where people might offer up to $100,000 over the asking price.
That picture had now distinctly changed and Whanganui mortgage adviser Aaron Stampa said putting in an offer below the asking price was now a good starting point.
"Anecdotally I've heard of multiple properties in the last week be accepted under asking price," he said.
"The property market is very good for first home buyers at the moment.
"[It is] swinging to a buyer's market rather than a seller's market."
However, the challenge for first home buyers was making sure they could get funding, and tightening of lending rules that started in December were still making that difficult, Stampa said.
Buyers who had tightened their belts and could show discipline to lenders were getting approval and buying houses, he said.
Like Todd, he said his investor inquiries had "dropped to zero", largely because yields had been dashed by the Government's changes around tax deductibility and demands for rental properties to meet the healthy homes standards.
Todd said once immigration started to get back to its normal flow and banks opened up their lending, with rules expected to relax from June, she expected prices would rise again.
Property lawyer Rob Moore agreed investors had been scared from the market and said there appeared to be a bit of an investor sell-off - with listings high.
"Six to seven months ago, you couldn't buy a property [in Whanganui] for under $450,000. Now I'm seeing contracts for $350,000 or $320,000."
"I'm seeing first home buyers getting some really good deals at the bottom end."
Moore said the Government's changes to try to dampen the housing market - taking away landlords' ability to write off interest and requiring higher standards for rental properties - were achieving the goal.
"Investors are now looking at having to spend a significant amount of money to get properties up to standard and also face a diminished return.
"A lot of them they're like 'this is hitting my back pocket'. A lot are dropping out of property ... and finding other investments."
Moore said couples who had bought a house last year and were separating were in the hardest position because they had to sell and may have to borrow to discharge their mortgage if their property's value had gone down.
Bayleys sales manager Michael Bourne said investor activity had quietened down and the fear of missing out (FOMO) mentality was gone.
"At the moment, the market in general is still performing well, not at the peaks that it was at last year."
New home buyer activity was slower as well because of the changes to lending that came into force in December, Bourne said.
He said the market was more balanced now and there was more of an even playing field between people selling and people trying to buy.
"Purchasers have got more choice at the moment. I wouldn't disagree with that."
Higher-end properties were still getting good offers and in demand, Bourne said.
Todd and Moore also said medium to higher-value properties in Whanganui were still doing well in the market.
Landlords Link new business manager Tracey Onishenko said she believed investor interest in Whanganui was still strong.
"Since last week there's been way more investors phoning me."
In February Onishenko said she took about 40 calls from prospective landlords, often wanting appraisals before they could get finance to purchase a house.
They were mostly all Aucklanders looking for a cheaper place to buy, she said.
"There are a lot of people adding to their portfolio - $600,000, for them that's nothing."
Many of those investors in places like Auckland were buying houses here without physically seeing the property, she said.
Average values up
OneRoof and Valocity figures showed Whanganui average house values had gone up 5.8 per cent since January to be $617,000.
For Rangitīkei that figure was 3.5 per cent ($563,000), Ruapehu was up 10 per cent ($450,000) and South Taranaki 11.1 per cent ($522,000).
Average values in Castlecliff were up the most of the Whanganui suburbs since January - up 12.1 per cent to $481,000, while Whanganui East had the lowest growth - up 2.4 per cent to $520,000.
But OneRoof's month to month report showed the four regions it looks at in the central North Island had "little to no value growth" over March.
Ruapehu had the second biggest growth in the country for March - up 3.21 per cent to the $450,000 figure.
