Quotable Value says house values remain relatively stable across the country, but vary considerably between cities.
Its latest figures show values have fallen two percent in the year to March, compared with the previous 12 months.
Values recovered slightly in Auckland and Wellington, offsetting declines in provincial and rural areas.
But QV says these first signs of a possible recovery in values were short lived, as both Auckland and Wellington slid back again in March.
The average sale price fell by 2.5% to about $401,000 compared with the previous month.
The agency says its index cannot yet be used to measure property values in Christchurch, due to delays in the sales process following the earthquake.
Quotable Value expects house values to improve by the end of this year, with the Auckland market leading the way.
Research director Jonno Ingerson says house prices in Auckland and Wellington should remain stable for the next few months, before picking up.
