For Wellington, Lower Hutt suffered the biggest tumble in prices compared to its neighbours, with the average property value dropping $30,000 to just over $1 million, leaving the city teetering on the edge of slipping below.
Upper Hutt is also at risk of dropping below $1 million after experiencing a drop of 1.4 per cent or $14,000 to an average price of $1.012 million.
The slides in Porirua and Kapiti Coast were less than 1 per cent.
Values fell in 47 suburbs across the region.
Of the 21 Lower Hutt suburbs that recorded 20 or more sales in the last year, only Stokes Valley saw value growth over the quarter. The biggest fallers were Normandale and Waterloo, down $61,000 and $60,000 respectively. In Upper Hutt, values fell in 10 suburbs.
Meanwhile in the capital, value growth was a sluggish 2.1 per cent, down from almost 5 per cent in the three months ending March.
Two of the city's biggest housing markets, Karori and Johnsonville, suffered value drops, but more than half a dozen suburbs around the city enjoyed value growth of more than 5 per cent over the quarter.
Nationwide, the figures from the report show the brakes are firmly on, with only a 0.5 per cent increase in the national average over the quarter, bringing the average house price in New Zealand to $1.094 million.
Growth in the regions was 1-2 per cent, a far cry from the 5-10 per cent growth in some places towards the end of last year.
"While the change will no doubt be a concern to those who bought at market peak, the outlook for Auckland, and the rest of the country, isn't as dire as it looked during the GFC," said James Wilson, head of valuations at OneRoof's data partner, Valocity.
"Yes, interest rates are on the rise but back in 2008 the Official Cash Rate was just over 8 per cent, opposed to 1.5 per cent now. The worst of Omicron wave seems to have passed and many of the Covid restrictions are being lifted. The Government has also promised to ease the harsh credit rules that have pushed many first-home buyers out of the market," Wilson said.
Of the country's 72 territorial authorities, 17 registered zero or negative growth over the quarter, with Lower Hutt suffering the steepest drop, at 2.9 per cent.
OneRoof editor Owen Vaughan said the slowdown would be a jolt for many.
"At the end of 2021 the quarterly growth figure for New Zealand was running at almost 7 per cent. In Auckland, it was 7.6 per cent. That's quite a shift and one that will have wrong-footed a lot of sellers, especially now there's more stock on the market and less urgency among buyers.
"However, property values in every region are ahead of where they were six months ago. Those who bought before 2020 and are considering selling will still feel the effects of the boom."
