Home values in many of the country's regional areas were boosted over January.
Dunedin and Queenstown Lakes were among the leading gainers, while Auckland house values eased.
However, t Auckland's red hot market - still up almost 20% on a year ago - is expected to take off again due to increasing migration flows.
The West Coast accounted for three of the four South Island areas where values decreased.
With the loss of hundreds of West Coast mining jobs during the past two years, hundreds of houses are now reported to be on the market there.
The West Coast district of Buller was down 4.8%, Grey was down 6%, and Westland was down down 2.4%, while in the Hurunui district, north of Christchurch,
values had fallen 2.4% since November, according to Quotable Value (QV) data released by QV national spokeswoman Andrea Rush.
"In the South Island, Queenstown Lakes district saw values increase the most, up 5.2% over the past three months, followed by the nearby Clutha district, where values rose 4.2% over the same period,'' Ms Rush said in a statement yesterday.
Dunedin home values continuing to show steady increases, up by 2.8% over the past three months and 6.1% year on year.
QV's Dunedin registered valuer, Duncan Jack, said, in comparison with the last few years, the housing market was buoyant with a lot of buyers around, but listings were "a bit light'' with agents seeking new stock.
"Low interest rates are definitely helping people with mortgage affordability. First home buyers are always a big component in Dunedin and that section of the market remains strong,'' he said.
He reiterated out-of-town buyers, both owner occupiers and investors, were becoming active in Dunedin, possibly looking to capitalise on attractive rental yields relative to some other main centres.
Ms Rush said the value decreases in parts of Auckland could be in part due to the impact of the holiday period and the housing market may pick up this month and next, usually the usually busiest months of the year.
There was likely to be a continuation of the softening in the market seen following the introduction of new IRD rules and the Reserve Bank to curb investor activity in the Auckland, and restrictions on the outflow of capital from China late last year.
"[However] it's possible the easing in values in Auckland may be short-lived.
"The underlying factors driving house prices up remain: record high net migration, record low interest rates and a lack of housing supply,'' Ms Rush said.
In the North Island, the overflow effect of Auckland's recent price hikes was evident and values in surrounding regions had increased significantly during recent months, she said.
In the South Island, Queenstown Lakes district's quarterly values increased the most, up 5.2%, followed by the Clutha district, where values rose 4.2% over the same period, she said.
