Buyers "have the upper hand" as a glut of houses for sale contributes to stagnating prices.

House values continue to fall, with some main centres seeing an increase in the rate of decline.

The latest QV House Price Index shows home values fell by a national average of 0.2 percent over the three months to the end of May, which was down slightly from the 0.1 percent quarterly growth reported in April.

The average house value was sitting at $923,713, which was 3.9 percent up on the year earlier, though 13 percent down from the peak in late 2021.

Auckland led the market down with a 1.4 percent drop in quarterly values for the fourth month in a row.