KEY POINTS:
The national median house price dropped by at least $2500 in June, according to latest figures from the Real Estate Institute.
The drop follows an increase of $45,000 over the last year.
The national median price dropped from $350,000 in May to $347,500 in June, the figures show.
Real Estate Institute president Murray Cleland said the residential market had "cooled its heels".
Mr Cleland put the fall down to cold weather and high interest rates.
He said he believed Reserve Bank governor Allan Bollard would be happy with the figures but that they were unlikely to change the Official Cash Rate.
"We're in a period of wait and see," Mr Cleland said.
He said it was normal for a drop off to occur over the winter months.
The institute has tightened its reporting deadlines for collecting sales figures and Mr Cleland said this may have affected the number of sales by up to 8 per cent, or 600 sales.
But Mr Cleland it had not affected the median prices and there was no doubt the market was pulling back.
The institute's figures differ from those of Quotable Value, which put the national median price at $378,672 in June.
But Mr Cleland said the institute's figures were based on unconditional sales, whereas other figures were based on property settlements, effectively making them six weeks out of date.
There had been falls across seven of the 12 national regions surveyed, he said.
It is not known if the new figures are likely to have an impact on interest rates.
A Reserve Bank spokeswoman said the bank did not comment "mid cycle".
She said the next Official Cash Rate would be reviewed on July 26.
Regional breakdown
Auckland Region: $450,000 in May down to 445,000 in June.
Metropolitan Auckland: $451,000 in May to 450,000 in June.
North Shore: $535,000 in May to 539,000 in June.
Auckland City: 492,000 in May to 495,000 in June.
The Regions, from May to June:
Northland: From $330,000, down to $315,000.
Waikato and the Bay of Plenty: Up from 315,000, to $325,000.
Hawkes Bay: Down from $277,000, to $268,100
Manawatu and Wanganui: Up from 222,000, to $248,000
Taranaki: Down from $281,000, to $265,000
Wellington: From $385,000, to $375,000
Nelson and Marlborough: Up from $328,000 to $335,000
Christchurch steady at $330,000
Otago: Down from $240,000, to $230,000
Southland: Up from $177,000, to $177,750.
