Auckland's largest real estate agency says the runaway market is showing unmistakable signs of slowing down.
Barfoot and Thompson figures for July show the average sale price was down 4.5 percent on June, and 2 percent below the average price for the previous two months.
Chief executive Wendy Alexander says: "The winter months, school holidays and a slowing in the number of new listings all contributed to the slow-down in July, but buyer determination to pay whatever is necessary to achieve a property was tempered."
In July Barfoot and Thompson sold 1034 properties - down 11.5 percent on June and 25.5 percent on the same time last year.
In its initial analysis, ASB says sales appear to have "fallen off a cliff" in July.
However the bank urges caution with the figures, as July 2015 was an incredibly strong month when buyers and sellers leapt into the market to get ahead of loan-to-value ratio (LVR) restrictions being imposed.
In its commentary the bank says the next few months will be an interesting time in the Auckland, and wider, housing market.
"With the impending additional investor LVR restrictions due in September, we will be watching to see whether activity picks up again ahead of this. On the whole though, listings remain low, population growth remains strong and interest rates are near or at historical lows. "