The median house price in the Gore district dropped a whopping 24% in August from July, the latest REINZ figures show.
The median price in August was $190,000, compared with $250,000 in July.
The median price in August 2016 was $165,000.
Gore house sales also dropped 25% from August last year, falling from 24 to 18.
The median house price in the Southland district fell 11.8% to $225,000 in August, from July’s $255,000, returning it to the August 2016 level.
However, the median house price in the Southland region as a whole, which includes Invercargill, rose 7.5% to $250,000 in August, compared with $232,500 in July, driven by the Invercargill market.
The median house price in the Southland region was $205,000 in August 2016.
“The Southland region experienced the biggest increase in price (22%) across the whole country [compared with August 2016], driven in part by the biggest decrease in sales volume across New Zealand,” Ms Norwell said.
“However, the market remains stable and we expect a steady increase in activity over the coming months,” she said.
No region in New Zealand experienced an increase in the number of properties sold during August compared with August last year.
Overall, the number of properties sold across New Zealand fell 20% in August from August 2016, a reduction of 1472 properties.
Southland was among regions experiencing big reductions in sales year on year with a drop of 37.3%.
“Again we’ve seen the number of properties sold across the country drop significantly,” she said.
Despite the monthly fall in the Gore district, Gore Mayor Tracy Hicks remained firm in his belief in the need for the new subdivision the council is developing in East Gore.
To gain a clearer picture, the trends for several years needed to be taken into consideration, he said.
Prices would always fluctuate, but the value for people coming to live in the district from other parts of New Zealand was exceptional, Mr Hicks said.
The proof more housing was needed in the district was underscored by the difficulty people were experiencing securing rentals, he said.
“The rental market really illustrates that you really can’t get a rental for love nor money,” Mr Hicks said.
There were also fewer houses on the market, resulting in less choice for buyers, he said.