The average New Zealand dwelling value dropped 0.4% in the June quarter to stand at $906,443 as of 30 June, according to QV data.
Average values are now down 14.8% from the 2022 market peak. Values declined in 12 of the 20 biggest urban areas, remained unchanged in two, and increased in six.
Gisborne recorded the largest decline at 4.2%, followed by Whanganui at 1.8%, and Rotorua and Hastings both at 1.2%. Auckland values slipped 0.7% and Wellington City declined 1.0%.
Greymouth posted the largest increase at 2.2%, while Invercargill rose 1.5% and both Tauranga and Christchurch increased 0.9%.
QV spokesperson Simon Petersen said subdued economic performance and excess inventory on the market are putting downward pressure on prices, with North Island centres and the top of the South Island particularly affected. He said Canterbury and Southland were benefiting from local economic resilience, comparative affordability and supply-demand equilibrium that is underpinning values.
"Broader political and economic uncertainty is weighing heavily on buyer confidence, while cost of living pressures remain a significant challenge for many households," Petersen said. "As a result, many prospective purchasers are choosing to sit on the sidelines."