The number of houses sold in July hit a six-year high for the month but prices have eased, latest figures from the Real Estate Institute show.
The figures show sales rose 15% to 6777 in July, compared with the same period a year ago. It is the highest level for six years, due to more properties being listed for sale.
But the average price fell 2% to $385,000 - 4% below the peak recorded in March, but more than 6% up for the year.
The institute said it is the most active winter the housing market has experienced for six or seven years, which it attributes to first-time buyers trying to secure houses before proposed low deposit restrictions come into force.
Real Estate Institute chief executive Helen O'Sullivan said on Monday there had been an increased number of listings and that had led to more sales but lower prices.
July was often quiet, but buyer frustration and a milder winter had combined to boost results.
"Buyers that are in the marketplace now have been looking for some time and they've stayed in the market over winter," Ms O'Sullivan said. "It would appear some vendors have come into the market to meet that (demand)."
Economists say Auckland and, to a lesser extent, Christchurch continue to drive the housing market, but elsewhere demand is subdued.
Deutsche Bank chief economist Darren Gibbs said the rate of house price inflation was slowing.
"That's a lower rate of growth than we've seen over much of this year. If you look at the last three months annualised, house price inflation is running at about 5%. As recently as April it was running at about 12%, so certainly some signs that price inflation is moderating."
