QV's latest house value index shows property prices are continuing to cool

The average value decreased 2.2 percent nationally in the three month period to the end of May.

That puts them at the same level they were in November.

There was a 3.3 percent drop in Auckland, a 4.9 percent fall in Wellington and a 4.4 percent slump in Hamilton during that same period.

QV General Manager David Nagel says despite the fall, there shouldn't be alarm bells for owners.

He believes it's a correction and not a sign of a housing crash.