The number of residential property sales last month was the lowest for a July month in a decade, according to the Real Estate Institute of New Zealand (REINZ).
The largest median price fall was in the Central Otago Lakes district, which was down 4.9%, while the biggest rise was in Southland, which was up more than 10.5% on the previous year.
Nationwide, sales slipped from 4575 in June to 4411 last month, the lowest July total in 10 years, but higher than the record low of only 3666 sales last January.
Nationwide, prices also fell, by 1.2%, in July from June.
In the three months to July, the index showed housing prices down by 1.1%.
The national median price for July was $349,000, down from $352,500 in June, but 2.6% up on the $340,000 in July 2008 and 2009.
Prices in all South Island areas, apart from Christchurch, were down 2.7% from July 2009.
In Christchurch, prices were up 7.4% on a year earlier, Auckland was up 1.7% and Wellington up 1.1%.
In Otago, the median price increased from $227,500 in June to $245,000 last month, a 9.9% increase on the July 2009 median of $223,000.
Across the region, 196 dwellings sold last month, up on the 182 sales in June but fewer than the 229 in July 2009.
The median price in Dunedin city edged up, from $241,250 in May and $243,000 in June to $259,000 last month, which was also an increase on the July 2009 median of $230,000.
At 151, sales were up on the 139 dwellings sold in June, but down on the 179 in July 2009.
In North Otago, the median sale price recovered from $190,000 in June to $211,000 in July, which was also up on the median of $207,500 a year ago.
At 26, sales were down on the 29 in June and the 37 in July last year.
Across the Central Otago Lakes district, the median price eased back further from $415,000 in June to $390,800 in July, 4.9% down on the median value of $411,000 a year ago.
Central Otago Lakes house sales also decreased, to 48 last month, from 85 in June and was down on the 84 sold in July last year.
The median price for a house in Central Otago decreased to $333,500 last month from $349,500 in June but is up on the July 2009 median of $327,000.
Sales of 24 properties are down on the 42 sold in June and the 49 in July 2009.
From $500,000 in June, the Queenstown median price dropped to $436,000 last month nearly; $100,000 down on the July median last year of $530,000.
Sales were also down at 24 properties sold, compared with 43 in June and 35 in July last year.
The number of sales in South Otago increased to 15, from just 10 in June and in July 2009.
The median price rose from $173,500 in June to $227,000 last month, significantly up on the July 2009 median of $142,500.
"We are seeing a similar pattern to last month, with sales volumes down but prices remaining stable in contradiction of predictions of a falling market," REINZ spokesman Peter Thompson said.
"Good sales are still being made and properties priced right are attracting a lot of attention and are selling."
The total value of residential sales, including sections, in July declined to $1.83 billion, a further decrease on the June total of $1.96 billion.
"House prices held up surprisingly well over the first half of 2010, given the weakness in demand during this time. Given the weakened fundamentals for housing demand, including slowing population growth, rising interest rates and change in tax policy, we expect house prices will come under pressure over the second half of the year, falling around 3% over the next year," ASB economist Jane Turner said.
"The lift in median days to sell to 45 days, compared to the historical average of 38 days, also points to further weakness in house prices over the next year. It is increasingly clear the market has shifted in favour of buyers."
The REINZ Housing Price Index increased by 1.8 % compared with 12 months earlier.
The national median number of days to sell was 45 for July, the same as in June, but more than the 37 days of July 2009 and better than the 58 days in July 2008.
The breakdown of the values of the properties sold was: 134 for $1 million plus, 462 for $600,000-$999,999, 1084 for $400,000-$599,999 and 2731 under $400,000. nigel.benson@odt.co.nz
