Supply shortages are likely to only get worse, according to the latest BNZ/REINZ survey.
The monthly survey of real estate agents revealed than 19% of agents said they were receiving fewer requests from would-be vendors for property appraisals.
But the ratio of sales to listings is at a record high.
A net 11% of agents reported they were seeing more people going through open homes, down from earlier in the year.
The number of agents reporting increasing auction clearance rates has also dropped.
BNZ chief economist Tony Alexander said that could be an indication that higher prices were causing people to back off. “Just as the fall in open home growth numbers in the past two months may have reflected buyer caution.”
The number of agents seeing more first-home buyers is roughly the same as in previous surveys. A net 28% of agents report that they are seeing more investors wanting to buy.
Alexander said: “This is a strong result though down from higher levels of interest being shown by investors between February and April.”