Quotable Value is warning flattening or falling house prices mean we are now in a buyer's market and some vendors may have unrealistic expectations about what their property is worth.
"The data very much confirms what we're seeing, with values continuing to moderate or drop after a sustained period of growth," QV general manager David Nagel said.
"Interestingly, we're observing challenges around managing seller expectations on sales prices," he said.
"After a sustained period of national value growth, sellers can sometimes have an inflated - even unrealistic - view of the value of their property.
"This is resulting in slower than usual average times to sell properties across some areas.
"In this sense, it's a buyer's market," Nagel said.
QV's House Price Index shows that the national average value of a home was $675,680 in the three months to the end of June, down 0.3% compared to the previous three months.
In the Auckland region the average value was down 0.2% over the same period, while it dropped 0.9% in Tauranga and 0.8% in the Wellington region where the biggest fall of 1.3% occurred in Wellington City.
In Christchurch average values were almost unchanged, up just 0.1% over the three months to the end of June compared to the previous three months. But they were down 0.3% compared to where they were 12 months ago.
The biggest fall in average property values over three months to June occurred in Opotiki where it was down 15.2% compared to the first quarter of the year, and down 3.8% compared to 12 months earlier.
The biggest increase was in Ruapehu District where the average property value was up 5.8% in the second quarter of the year compared to the first quarter (see the table below for the full regional and district figures).
'We've returned to normal market conditions'
QV Auckland senior consultant James Steele said value growth in the region had flattened.
"We've returned to normal market conditions with prices stabilising," he said.
More properties were being sold by negotiation rather than auction, mainly due to lower demand, he said.
"With less demand, sellers are adjusting expectations and are more open to negotiation in order to get their property sold.
"We're seeing some developments struggling with off the plan sales, although finished entry level stock within these developments remains in demand," Steele said.
In Wellington QV senior consultant Paul McCorry said value growth was continuing to moderate.
"Sales activity is subdued, with low listing numbers, particularly in established inner city suburbs," he said.
"Demand remains high from first home buyers, with many taking advantage of less competition at open homes and auctions through winter.
"This is particularly evident in more affordable areas such as Hutt City and Porirua," he said.
In Christchurch sales activity was slowing while property values were flat overall, according to QV Christchurch property consultant Hamish Collins.
There was growing interest for new builds in and around the city centre, but an oversupply of land and developments in fringe districts and on the outskirts of the city, he said.
These included areas such as Halswell, Wigram, Preston and the Selwyn and Waimakariri districts.
"We are seeing some developers offering new builds or recently constructed properties at discounts as a way to free up cash for their next project," Collins said.
"This is having a flow on effect on the overall value of new builds or existing properties in these areas," he said.
QV House Price Index - June 2018
|Total New Zealand nationwide||675,680||5.7%||-0.3%|
|Auckland - Rodney||957,145||0.1%||0.8%|
|Rodney - Hibiscus Coast||934,930||0.7%||1.6%|
|Rodney - North||979,832||-0.5%||0.0%|
|Auckland - North Shore||1,224,965||1.8%||-0.9%|
|North Shore - Coastal||1,399,222||1.6%||-1.6%|
|North Shore - Onewa||972,081||1.6%||0.1%|
|North Shore - North Harbour||1,213,442||1.9%||-0.4%|
|Auckland - Waitakere||826,625||0.4%||0.2%|
|Auckland - City||1,243,037||1.2%||-0.1%|
|Auckland City - Central||1,083,584||1.0%||-1.1%|
|Auckland_City - East||1,564,605||1.9%||-0.1%|
|Auckland City - South||1,105,723||0.2%||0.7%|
|Auckland City - Islands||1,175,112||6.9%||1.5%|
|Auckland - Manukau||903,686||0.3%||0.1%|
|Manukau - East||1,155,930||-1.2%||-0.3%|
|Manukau - Central||699,672||2.3%||0.1%|
|Manukau - North West||782,457||1.4%||0.5%|
|Auckland - Papakura||702,677||3.7%||-0.1%|
|Auckland - Franklin||662,417||-0.7%||-1.9%|
|Hamilton - North East||707,077||4.0%||1.1%|
|Hamilton - Central & North West||513,254||3.0%||-0.5%|
|Hamilton - South East||507,314||3.2%||1.1%|
|Hamilton - South West||487,384||1.0%||-2.3%|
|Central Hawkes Bay||319,700||13.7%||-2.5%|
|Wellington - Central & South||756,859||3.6%||-1.3%|
|Wellington - East||810,297||3.2%||-1.2%|
|Wellington - North||685,190||6.4%||-0.9%|
|Wellington - West||868,905||3.0%||-2.1%|
|Christchurch - East||372,273||0.0%||0.3%|
|Christchurch - Hills||669,350||0.7%||0.1%|
|Christchurch - Central & North||583,746||-0.5%||0.4%|
|Christchurch - Southwest||471,922||-0.8%||-0.4%|
|Christchurch - Banks Peninsula||516,466||1.7%||1.8%|
|Dunedin - Central & North||426,882||9.8%||3.4%|
|Dunedin - Peninsular & Coastal||380,445||9.8%||3.7%|
|Dunedin - South||389,289||9.4%||3.7%|
|Dunedin - Taieri||422,578||8.3%||1.6%|
|Main Urban Areas||790,027||5.1%||-0.5%|