The number of houses sold in January fell to the lowest monthly level since 1992.
Real Estate Institute figures released on Friday show 3,706 houses were sold in January, down from 5,186 in January 2008.
The national median house price fell to $325,000 from $340,000 in January last year.
Real Estate Institute president Mike Elford says the lowest turnover before last year was in January 1992 when 4,427 houses were sold, and this year's figure is well below that.
Mr Elford says houses are also taking longer to sell and falling interest rates have yet to revitalise the market.