Mortgage lending restrictions appear to be having an impact on house sales, with the number of cheaper homes changing hands falling by more than 14% in December compared to a year ago.
The Real Estate Institute said nearly 5700 homes were sold last month - an 18% drop from November.
Sales fell by just over 1% compared to a year ago but plummeted by more than 14% in the $400,000 or less category.
Institute chief executive Helen O'Sullivan said the Reserve Bank restrictions on banks lending to people with small deposits could be responsible but it may not last.
Overall, house prices retreated from a record high in December, falling 1% from November.
