The property market is now being underpinned by a high supply of homes as sales activity plummets and house prices drop.
According to the Real Estate Institute's (REINZ) latest report, the number of properties sold fell 35.2 percent annually to 4860 but the total number of houses for sale nationally increased by 70.8 percent to 27,050.
The national median house price for New Zealand excluding Auckland was $755,000 - 2.4 percent lower than a month ago.
Auckland's median residential property price dropped 2.5 percent in April to $1.17 million.
The report said the house price index only rose by 6.3 percent in the 12 months to April - compared with an annual increase of 9 percent in the year to March.
REINZ chief executive Jen Baird said the market was now seeing weakened demand but prices remained high.
"We're seeing a slowdown in activity, there is more stock staying on the market for longer and while annual price growth is more moderate, the month-on-month trend shows a fall in median prices," Baird said.
"Falling attendance at open homes and auction rooms and a decrease in buyer enquiries were reported across New Zealand - exacerbated by a spate of public holidays through April.
"Affordability, uncertainty and changing financial conditions remain primary concerns. Tighter lending criteria, LVRs (loan to value restrictions) and increasing interest rates coupled with inflation continue to create challenges for some buyers - particularly first home buyers and investors."
No regions, with the exception of Marlborough at $764,000, reported a new record median price in April.
"There is a lot more property on the market and combined with a less positive financial and economic outlook, we are seeing demand dissipate - alleviating upward pressure and moderating price growth," Baird said.
"Otago, Manawatu/Whanganui and Gisborne all saw annual percentage decreases in median prices while West Coast and Canterbury saw annual increases of 31.6 percent and 20.8 percent respectively.
"However, looking at the month-on-month figures, it's clear the median property price is falling."