The agency has released its latest statistics, showing sales and prices dropping or remaining stagnant outside the biggest cities.

In the provincial South Island, sales were down 7.1% in October on the same month in 2013 and prices were up only 1%.

Harcourts chief executive Hayden Duncan said restrictions had not had a large effect on the market in Auckland and Christchurch.

He said first-home buyers outside these two cities have been most affected.

“In Auckland and Christchurch there has been a clear recovery from the winter lull that is traditional in real estate, with written sales up and average prices continuing to increase. The provinces, by contrast, are continuing to struggle, with the South Island in particular failing to thrive. The Auckland and Christchurch markets are driven by low supply and high demand. LVR restrictions have not had an effect on prices, which continue to rise, because demand is growing and construction is not keeping up with it. Instead our provincial markets, which were never overheated, have been badly affected and average Kiwis trying to break into the property market have been prevented from doing so,” Duncan said.

Harcourts’ northern region’s listings were down 6.9% in October compared to 2013, sales were stagnant while the average price was up 4%. In Wellington the average price was down 7% and listings up 9.5%. Christchurch’s listings were down 14.7% and prices up 1%.