House price growth has eased for the third month in a row suggesting efforts to cool the market may be working.
Quotable Value's rolling three-month average House Price Index to the end of July rose 4.3 percent over the month earlier, which was down from 6.6 percent growth in the month earlier.
The national average value was $952,078 last month, representing a year-on-year increase of more than 26 percent, little changed from growth seen in June.
Recent efforts to cool the market included tax measures, along with the reintroduction of bank lending restrictions for owner occupiers and investors.
Further measures were expected, including debt-to-income restrictions.
"Three-monthly value growth has more than halved since April when it was rocketing along at 8.9 percent," QV general manager David Nagel said.
All 16 major regions have shown a drop in growth, with Palmerston North and Christchurch recording the strongest gains.
While none of the regions saw a drop in their average value, Marlborough's growth had flattened out.
"The fundamentals of the property market are still strong, so we're unlikely to see a wholesale reduction of values anytime soon, but we may begin to see quarterly value growth taper off in some localities altogether, and even some small reductions as we come to the end of the current growth cycle," Nagel said.
"But while interest rates are still low and listings remain in short supply, it's more likely we'll likely see a continued slowing in the rate of price increases over the coming months as the property market continues to absorb the recent changes."