A correction in the housing market is beginning to bite across New Zealand

The QV House Price Index shows the national average home value has dropped below one million dollars for the first time since September last year.

The average value is now sitting at about 990-thousand.

QV Operations Manager Paul McCorry says the reduction in annual growth across the country is staggering.

He says the 30-percent national growth they were reporting at the end of last year is now down to just four-percent.