It is not a buyers' market yet, according to one of the big real estate firms, which sees current house market conditions as calm and balanced for buyers and sellers.
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Century 21 New Zealand owner Tim Kearins said house prices were forecast to weaken, but any savings for buyers were likely be offset by rising interest rates in the long run.
Recent sales data from the Real Estate Institute indicates median house prices rose 8.8 percent in April over the year earlier to $875,000, from $804,362 in April 2021.
"It's easy to compare now to some unbelievable prices achieved during 2020 and 2021," Kearins said, adding most property prices were well ahead of where they were in 2019.
"Without doubt the froth is coming off, but most vendors are still enjoying substantial gains," he said.
"In fact, plenty are still selling for 40 percent more than what the owners paid three or four years ago."
He said one reason for the recent market downturn was the introduction of the Credit Contract & Consumer Finance Act (CCCFA) in December, which had made it impossible for some buyers to qualify for a loan.
However, he said those conditions were expected to ease soon as the CCCFA was currently under review with a view to making it easier for buyers to qualify for a loan.
And while interest rates were on their way up, he said there were still relatively low compared with historic averages.
"Interest rates have been rising but they're still miles off where they have been in previous decades," he said.
"Historically, they've tended to be around 6 or 7 percent on average for Kiwi borrowers."
He said a 71 percent increase in the number of houses available for sale last month did not necessarily indicate vendors were prepared to accept a lower price.
"April saw a stand-off with many vendors refusing to budge while buyers kept their hands in their pockets," he said.
"However, we're starting to see more Kiwis meet the market, with some very satisfactory outcomes being achieved for both parties."