"The problem is when you get down into South Wairarapa where you've got lesser numbers of properties selling, it only takes one to throw those averages out.
"In Masterton in general the RV is pretty close to where they're selling."
Mr Morison said it was a good time to buy in Masterton with attractive interest rates and cheap properties available.
"It's attractive for first-home buyers, that's for sure."
About 30 houses a month had been selling in Masterton consistently for the past 12 months, Mr Morison said.
"There's been no great highs and lows. First-time home buyers seem to be taking opportunities the rental investors were - but they've been pretty fussy.
"I don't think values are going to drop down too much more."
Sixty-five of the 118 towns and suburbs north of Turangi declined in the last quarter, with Hamilton providing the only encouragement. The soft regional market reflects weak demand from buyers and inflated prices in some areas, combined with "urban drift" to the main centres.
Auckland has been described as a "sellers' market" with sale volumes over winter back at peak 2007 levels.
ASB chief economist Nick Tuffley said the housing market was seeing gradual improvement. "A lot of the improvement has been in terms of sales turnover increasing and prices increasing out of Canterbury and Auckland.
"There's a degree of stabilisation in the wider market but what we've seen in those two regions is a lot more heat coming through."
That "heat" was driven by supply shortages and surging demand, Mr Tuffley said.
"Starting with Auckland ... building activity has been relatively moderate but the population has continued to gradually grow."
Mr Tuffley said mortgage raters were likely to remain low if the debt situation in Europe did not cause more jitters.
There was limited scope for interest rates to fall any further, however a rise was not expected until the middle of next year.
- APNZ
BY THE NUMBERS
- $230,000 - median sale price in Masterton for the second quarter of 2012
- $205,000 - median sale price in Masterton for the first quarter of 2012
- $225,000 - median sale price in Carterton for the second quarter of 2012
- $225,000 - median sale price in Carterton for the first quarter of 2012
- $280,000 - median sale price in Martinborough for the second quarter of 2012
- $311,750 - median sale price in Martinborough for the first quarter of 2012
- $326,944 - average value of properties in Greytown, Wairarapa's most expensive town
- $152,833 - average value of properties in Pahiatua, Wairarapa's most affordable town
