Farm sales continue to lag behind normal volumes in a frustrating market, says the Real Estate Institute of New Zealand.
There were 267 farms sold in the three months to April, similar to the 266 sold last year but fewer than the 786 sold during the same period in 2008.
Institute president Peter McDonald said there was a lot of interest in properties but it had not resulted in many sales.
"I guess from an agent's point of view it's a frustrating market," McDonald said.
"It's constrained and there's been a year of frustrations with some very good farms on the market and some good, strong, traditional New Zealand farming families looking to buy."
But a very small percentage of them actually ended up going into sales.
The median price for dairy farms was $3.6 million, compared with $3.2 million last year and $3.9 million in the period to April 2008.
Dairy company Fonterra last month increased its milk price forecast for this season by 40c to $6.10 a kg of milksolids - the second-highest level on record and up from $4.72 last season - and told farmers to budget for a similar milk price for next season.
The farmer co-operative also re-affirmed a profit forecast of 40c to 50c a share, with a target dividend of 20c to 30c a share.
McDonald said: "The outlook looks very good and people should be looking to grow, and things like that.
"But it's just been the same case right through the year that the contracts are being put together.
"However, the deals fall through because the finance clauses are not fulfilled."
