Southland region had the quickest house sales in the whole country in July.

Properties across Southland District, Invercargill City and Gore District were on the market on average for just 33 days.

That's a day less than they took to sell this time last year.

Figures published by the Real Estate Institute of New Zealand show that's the lowest median days-to-sell in New Zealand. Southland is one of only two regions where homes took fewer than 40 days to sell, the other being Canterbury, at 35.

However, the number of homes that actually sold was down. There were 120 sales across the region last month, compared to 158 in July 2021. It's slightly up on June 2022, when 106 sales were agreed.

The median price was up though, bucking the national trend.

"The median price in Southland [region] increased annually by 0.4% to $421,500," REINZ CEO Jen Baird says.

"Reports suggest many buyers fear overpaying; they are acting with less urgency and waiting for prices to decrease — adding to an annual decrease in sales counts of 24.1%.

"However, properties spent one day less on the market than this time last year, down from 34 days in July 2021 to 33 days this year.

"Agents say banks are slow to move, impacting first home buyers’ ability to secure finance quickly."

The median house price in Southland District was $415,000 in July, up 15.3% on last July's $360k.

For Invercargill City, it was $429k, up 0.5% on $427k last July. And the Gore District, the median July price was $390k, up 1.3% on $385k last July.

Nationally, the annual median property price fell for the first time in more than a decade, as the housing market slowdown continues.

Median prices for residential property decreased 1.8% annually, from $825,000 in July 2021 to $810,000 in July 2022. However, excluding Auckland, they rose 4.5%, from $688,999 to $720,000.

"We saw a significant upswing in prices since the initial Covid-19 lockdown in early 2020, reaching a peak in November 2021," Baird says.

"While the median property price is showing an annual decrease, affordability remains an obstacle for many — which is now being driven by rising interest rates, inflation and tighter lending criteria.

"In more affordable regions, we have continued to see significant growth compared to larger markets such as Auckland and Wellington. Buyer demand remains intact in Canterbury, and specifically Christchurch, reflected in the region's strong performance over the past months."

The other major centre, Wellington, hasn't fared so well though, with houses on the market for 61 days, on average.

"Real estate markets are cyclical, after a period of strong upward movement, it is slowing. However, prices tend to decrease more slowly than they increase and after a period of stability, the market tends to regain momentum and median prices start their climb. We are in the easing part of the market cycle," Baird says.