New Zealand house prices plummeted by 2.3 percent in May from April, partly driven by caution from buyers amid high interest and council rates, Trade Me says.
In the year to May, prices rose by 0.9 percent - showing the pace of annual growth "appears to be slowing", Trade Me's property price index showed on Wednesday.
"Seeing prices dip slightly isn't completely unexpected heading into winter. Year on year prices continue to show a small increase of 0.9 per cent, maintaining an overall upward trend for the fourth month in a row," Trade Me spokesperson Casey Wylde said.
Due to the nature of the market and supply outgrowing demand, properties were spending more time on sale as buyers felt they were "able to take more time to make a decision", Wylde said.
Last week, realestate.co.nz said its measure of house prices fell on both a monthly and yearly basis (0.8 and 1.6 percent respectively).
New Zealand's housing market had been relatively flat as the official cash rate stood still at 5.5 percent; with expectations the Reserve Bank would not start to cut interest rates until early next year.
Among New Zealand's main centres, Auckland's average asking price was $1.06 million in May - down 2.3 percent from the previous month, the Trade Me property price index showed.
The price of a five-plus bedroom home in Auckland City was in freefall - down 9.9 percent from a year ago.
That wasn't surprising given "they're among the most expensive properties in the country", Wylde said.
In Hawke's Bay, prices were down 3.7 percent month-on-month to $728,250.
Gisborne, meanwhile, was the only region where average prices rose - up 5.2 percent from April to $653,750.
The ongoing recovery from Cyclone Gabrielle was flowing through to Gisborne's housing market, Wylde said.
"Following the devastation caused by Cyclone Gabrielle in the region last year, supply as well as property prices took a significant hit. We're now seeing the Gisborne market recover."
Overall, New Zealand's housing market was "increasingly dynamic", Wylde said.
"Housing supply has fluctuated over recent years but, overall, has been on an upward trend. Especially now, following the consent boom in 2022, we're starting to see a lot of those projects reaching completion and entering the market, largely concentrated in the main cities where the most need for new housing has been."
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