The Queenstown Lakes district suffered the largest fall of median house prices in the 12 months ended February, but Real Estate Institute spokesmen say the fall is nothing to be worried about.
"The median has been lower in previous months and is not an indication of any major change in the market," Adrian Snow, of Queenstown, said.
Institute figures released yesterday showed the district's median prices dropped 17.5% in the February year, to $425,000 in 2009 from $515,000 in 2008.
Central Otago Lakes still had the highest median in the country, ahead of Auckland at $421,500.
Breaking the figures out further showed the 36 Central Otago sales had a median price of $332,000, compared to $382,000 in January and $378,500 in February last year.
The 40 Queenstown sales had a median price of $508,000, down from $560,000 in January and $565,000 in February last year.
The only other double-digit fall in median prices was 10.44% in Southland.
Mr Snow said the small number of sales often caused major fluctuations in the median price and not too much should be read into the latest figures.
Prices remained under pressure so the median should be tracking down.
From mid-December to the end of January there was a lift in inquiries and purchasers were making "honest attempts" at buying property.
Inquiries had eased in February, but not significantly.
"Queenstown sales have been in a stable pattern for the last six to eight months, with about 40 residential dwelling sales a month. I expected it to be the same in February.
"Section sales are the saddest part of the market, with sections in Queenstown falling from 20 a month in 2007 to around five per month. That's the biggest change but it's not out of the ordinary in a recessive market."
Purchasers were finding in many cases it was cheaper to buy an existing property than build, as house prices fell, Mr Snow said.
Central Otago Lakes institute president Ross Rainsford, of Wanaka, said section sales had also fallen in Wanaka.
House sales in Wanaka had remained about 20 a month for several months, a level he described as "steady".
Inquiries had picked up in the past three weeks as interest rates had fallen.
Half of the sales made in Wanaka were to people from outside of the town, indicating people still wanted to live there, Mr Rainsford said.
In Otago, 265 houses were sold in February, up from the 194 sold in January but down on the 334 sold in February last year.
The median price was up at $223,000 from $210,000 in January.
Sales were up in North Otago, with 30 houses sold compared to 20 in January and 58 in February last year.
The median price was down at $189,500 from $205,000 in January.
The median price in Dunedin increased to $235,000 in February from $231,000 in January but was down on last February's $240,000.
House sales of 212 were up on the 152 sold in January.
In South Otago, 15 houses were sold in February with a median price of $135,000, compared to 17 sales in January with a median price of $120,000.
Eight houses sold in East Otago in February with a median price of $180,000, compared with five sales in January with a median of $145,000.
