House price growth has decreased for a second month running but is still well up on 2020 - and it remains unlikely that values will reduce anytime soon.
New data from Quotable Value (QV) shows the average value spiked 6.6 percent in the three months to June, compared with an 8.8 percent increase in the three months to May.
QV general manager David Nagel says the slight reduction is promising.
"It's too early to say the market has turned, but this will be encouraging news for Government officials and regulators concerned about the financial risks of an overheated property market.
"This easing comes after a range of Government policy announcements earlier this year to dampen activity by property investors and speculators, while there's also plenty of chatter about interest rates rising later next year."
Every centre monitored except Rotorua had slower quarterly growth in the three months to June, the data showed.
"House prices have risen by an average 0.8 percent across the Auckland region in June - its lowest rate of monthly value growth since July 2020 and well down from the 3 percent and 2.3 percent growth we reported back in April and May respectively," QV said.
Growth also continued in Tauranga, with average prices now topping $1.04 million.
But QV property consultant Derek Turnwald said real estate agents continue to report a decline in investor interest.
He said first-home buyer interest has also declined, likely due to speculation the Official Cash Rate will go up next year.
"Despite all this, properties are still selling strongly, usually in multi-offer situations."
Nagel said with interest rates still at record lows, it's unlikely values will drop anytime soon.
"We'll likely see a continued slowing in the rate of price increases over the coming months as the property market absorbs the recent changes and winter really sets in."