The institute said it was the fifth-slowest July on record.
The picture was mixed around the country, though. Otago’s house price index hit an all-time high and Canterbury had the fourth-busiest July since the institute’s records began.
Real Estate Institute of New Zealand chief executive Lizzy Ryley said the Official Cash Rate increase, cost-of-living pressure, global uncertainty and the approaching election were all factors.
New Zealand’s prices are still down 17% from the peak, while Auckland’s are down 25% and Wellington’s are down just over 29%.
Compared with last year, Auckland’s prices are down 1.7% and Wellington’s 4.4% but Canterbury’s are up 4% and Otago’s almost 5%.
Real Estate Institute of New Zealand chief corporate affairs officer Trey Sarten said the drop in activity was noticeable.
“It’s interesting because it’s a bit of an infinite loop because the buyers having more time and choice leads to longer time on market, so the inventory starts to build up and the vendors are not blinking on price and so there is a bit of a stand-off of who’s going to blink first.
“I think generally there is uncertainty across the board, and so whether it’s with New Zealand as a country or globally with events around the world happening, whether that’s political or natural events, there is uncertainty that is preventing people from making a decision, so buyers are continuing to be cautious and sellers are holding out for that right offer to come along.”
He said the steadiness in the market was likely to continue while uncertainty was high.
“But it’s certainly not one national story as regions continue to operate on different speeds.”