The Real Estate Institute's (REINZ) residential market report shows the house price index, which measures the changing value of properties, fell 2.9% for the year ended July, compared with a 0.7% increase in June.
The seasonally adjusted national median price for July fell 1.6% from a year ago and is down 2.8% from June, to sit at $810,000.
The last time the national annual median price decreased was in July 2011.
Auckland's median price fell 2.7% (adjusted for seasonal variations) from June and 5.4% from a year ago, to be at $1.1 million.
REINZ chief executive Jen Baird said while the median price showed an annual decrease, affordability remained an obstacle for many, driven by rising interest rates, inflation, and tighter lending criteria.
"In more affordable regions, we have continued to see significant growth compared to larger markets such as Auckland and Wellington. Buyer demand remains intact in Canterbury, and specifically Christchurch, reflected in the region's strong performance over the past months.
"On the other hand, the Wellington market hasn't fared so well. According to local agents, the number of attendees at open homes has fallen."
National sales activity fell sharply, with the number of residential property sales down by more than a third from a year ago.
Homeowners were also taking longer to sell, with the national median number of days to sell a property at 47, which was 16 more than July 2021.
Baird said it was the highest number of days to sell nationally since February 2019, excluding April and May 2020, which were affected by the Covid-19 lockdown.
Seasonally adjusted annual median price changes for selected regions
- Auckland $1.1m down 5.4%
- Bay of Plenty $860,000 up 4.1%
- Canterbury $678,000 up 13.2%
- Otago $645,000 down 2.3%
- Waikato $788,550 up 7.9%
- Wellington $809,100 down 5.1%
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