Property sales numbers dropped 5% in August compared to the same time last year, only the second drop in the past 28 months.
But housing market data firm Cotality, formerly Corelogic, said it was likely the fall was a "blip" rather than the start of another downturn in sales.
"It's still a reminder that caution permeates the market at present. It will be interesting to see if sales volumes can continue to outweigh new listings flows as we move further into spring."
It said values dropped 0.2% in August, the fifth consecutive monthly fall.
Cotality chief property economist Kelvin Davidson said it was a reminder of the caution in the market, but was creating opportunities for buyers.
"We're seeing a clear shift in market composition, with first-home buyers in their strongest position in two decades."
First-home buyers were responsible for 27.5% of purchases over July and August.
Investors were also active, making up 24.6% of the market.
"To have a slight drop in August [in sales] is a little bit out of sync with what's been happening lately," Davidson said.
"I suspect it's probably more likely to be a one-off rather than the start of a new trend... activity has been rising but it's not booming. There's still a cautious attitude and there is still a fair bit of stock sitting on the market. So that's restraining house prices alongside things like the weak labour market, buyers still know they have the pricing power. "
He said buyers weren't rushing to push up prices but vendors were not having to capitulate, either.
"There's this sort of there's a bit of balance I suppose, and and how the market's really tracking sideways, both in terms of sales and house prices, so that that's been in play for a while, I guess the thing is, what might look painful for some people is an opportunity for others.
"There's finance available, interest rates are down. There's supply there. People are seeing opportunities and taking them."
The window of flat house prices and sluggish sales may not last forever, he said.
"If you look at things like housing affordability has normalised to some extent, interest rates are down and the impact of those lower mortgage rates is now actually starting to pass through to households.
"I think as they reprice from previously higher fixed rates on to current market rates, you do have a still relatively high supply of listings, but they are starting to come down as sales lift a little bit.
"And then it's taking a while, but the projections at the moment are that the unemployment rate will start to edge down next year. So some of those things have been holding the market back do seem to be turning or are set to turn. So I think you know getting to the first half of next year, things might look a little bit different."
He said while any change in the market was taking some time, there were reasons to think 2026 would be a bit brighter.
New Zealand's housing market was now worth a combined $1.65 trillion.
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