The number of house sales has dropped in February, dragged down by a big fall in Auckland.

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The Real Estate Institute's house price index rose 3.2 percent in February, compared to the year before, with eight out of 12 regions fetching record prices.

The median house price rose 5.7 percent over the past year to $560,000.

However, sales fell 9.5 percent, with a 17.9 percent drop in Auckland - the lowest level of monthly sales since October 2010.

Institute chief executive Bindi Norwell said the drop in house sales reflects a raft of legislative changes to the housing market.

"At a time when sales volumes are normally strong, when we look across the country, 13 out of 16 regions actually saw an annual fall in the number of properties sold," she said.

"What we're hearing from salespeople around the country is that vendors and investors are taking a 'wait and see' approach to the housing market - much like you would normally see around election time."

"This is particularly true in relation to the recently announced Capital Gains Tax proposals from the Tax Working Group."