Jen Baird, Real Estate Institute chief executive, said life was much tougher for vendors.
"More stock has lessened the urgency to buy. Buyers have more time to shop around and undertake due diligence and in the current market feel more confident to negotiate on price."
The number of homes for sale in August increased 108 per cent annually.
Auckland's median of $1.2m a year ago dropped 8.3 per cent annually to $1.1m and it now takes 48 days to sell a place in the city which is 16 days more than it took a year ago.
Baird said throughout New Zealand, life wasn't getting any easier for sellers.
"While affordability and access to finance remain an issue for many, these factors are compounded by rises in mortgage rates, recession fears and high inflation which are also curtailing activity.
"Vendors are increasingly realistic with their asking prices, however, demand remains dampened due to mortgage rates and continued affordability concerns."
The REINZ House Price Index for New Zealand, which measures the changing value of residential property nationwide, showed an annual decrease of 5.8 per cent from 3997 last August to 3767. The index is now down 12 per cent from its peak last November.
Unsold property volumes continue to swell. Listings rose 15.2 per cent nationally last month.
Agents in the Bay of Plenty have the greatest number of unsold residential properties on their books, up 62 per cent.
Marlborough sales are seeing properties for-sale dropping, down 37.5 per cent annually.
Baird said stock was staying on the market longer.
It now takes a median 49 days to sell a place nationally, up 18 days annually.
Auckland agents reported low open-home attendances but starting to pick up as the weather improved. Spring sales campaigns are starting which usually leads to more activity in the city, Baird said.
Franklin's median rose from July's $940,000 to $960,000 last month. Manukau's went from $1.02m to $1.04m, the North Shore's from $1.3m to $1.2m, Papakura's from $950,000 to $900,000, Rodney's from $1.2m to $1.1m, Waitakere from $1m to $970,000 and Auckland City from $1.2m to $1.1m.
Northland's residential median dropped from $725,000 in July to $642,000 last month.
The Waikato's median price stayed static for the last two months at $780,000. Hamilton's median fell from $790,000 to $785,000. Thames-Coromandel dropped from $1m to $955,000 in just a month.
Tauranga's median shot from $925,000 in July to $960,000 last month and overall, the Bay of Plenty's rose from $860,000 to $895,000. Rotorua's median went from $635,000 in July to $675,000 in August.
Gisborne region prices fell from a median $629,000 to $566,000 and just 38 properties were sold there last month.
Taranaki's median was $625,000 in July and rose to $637,000 last month after 154 sales. New Plymouth district went from $675,000 to $692,000 on the back of 112 sales, up from 111 in July.
Napier's median was $794,000 in July but hit $820,000 last month after 92 sales. The Hawke's Bay region recorded a $730,000 median in July but that was just $702,270 by August.
Manawatū/Whanganui's median dropped 6.6 per cent from $580,000 to $570,00 when 238 sales were recorded last month.
Wellington region prices fell from $809,000 to $780,000 after 515 sales in August and 509 in July.
Throughout the rest of New Zealand, Canterbury's median house price rose 4.8 per cent annually to reach $650,000 in August. But prices dropped to that figure from $675,000 in July.
Dunedin city prices stated static at $600,000 but the Queenstown-Lakes District's median rose from $1.20m to $1.25m after 332 sales in August, up on July's 292.
Gail Hudson, REINZ regional director for that area, said owner-occupiers were the most active group of buyers in the Queenstown-Lakes area. Visitor numbers had given that economy a boost and out-of-town buyers were becoming more visible.
"Spring is looking positive," Hudson said of the outlook for sales in the Queenstown-Lakes District this spring.
Earlier this month, the Herald reported how te Financial Times had asked if the New Zealand housing market is the canary in the coal mine - or in our case, the Kiwi down the pit.
A new video says economists globally are watching what happens to our residential values because we could be leading the way in terms of a massive adjustment in valuations.
The video was headlined "NZ house market: warning to the world?"
"As the year unfolds, houses in New Zealand are now in the minds of economists the world over," says the video which raises the spectre of us being ahead of many other countries to feel the sharp and painful effects of fast rises then quick falls.
The video from USB/FT Transact noted how our national house prices had risen by 43 per cent in two short years following the pandemic's outbreak. Our price-to-income ratio topped that of many other OECD nations, ahead of Canada, Australia, the United Kingdom, the United States and Japan.
