The October sales report showed 32 dwelling sales and 12 section sales, a total of 44 sales - 23% down on September's 57 sales and 27% down on October 2009's 60 sales.
Eight rural land sales and one rural home sale were also recorded in the separate rural statistics database, Mr Snow said.
"Despite realtors perceiving a period of easing in early 2010, opportunity for sales has slowed and bringing parties to agreement has become more difficult.
"Obviously, global recessionary effects remain as strong as they ever have been on real estate trading.
"Purchasers are predominantly coming from New Zealand, but expat Kiwis and Australians do feature in our purchaser demographics.
"This winter saw record numbers of Australians come to Queenstown, some of whom were purchasing real estate, but numbers of Australians actively looking were perhaps down on previous years, suggesting that recessionary effects are beginning to show for the Australians," Mr Snow said.
The dwelling median sale price was down 1% from September 2010 and 14% down on October 2009, with the median days to sell for October 2010 up 19% from September and up 84% from October 2009, which supported real estate agent statements sales were slowing and becoming more difficult.
However, recent announcements two of the main trading banks were expected to be clear of their bad debt liabilities in the next 12 months was positive, Mr Snow said.
"Purchaser interest in property remains good and at healthy levels, but purchasers who are in a position to buy today are taking plenty of time to research the market and being very conservative with the offers they are making.
"Also on the positive side of the confidence ledger, we are seeing reasonable numbers of section sales coming through the statistics.
"It does show that land is being purchased by residents or intending residents wanting to build in the immediate future, which is positive news for the local building industry."
Mr Snow said 12 section sales recorded for October was a "significant lift" from the lowest point of the market about two years ago, when section sales were one a month.
