The figures were released on Thursday as part of the Domain regional state of the market report.

The Domain report noted that the fall was in contrast to a year of robust market activity, with median prices increasing by 7.3 per cent.

Median house rents grew 1.2 per cent over the quarter and 3.7 per cent over the year, now sitting at $425 per week, Domain chief economist, Dr Andrew Wilson.

"The slight fall in the Port Macquarie market this quarter, follows a year of healthy growth,” he said.

“The region has long been a favourite spot for retirees, which suggests market activity will stabilise shortly.”

By comparison, house prices in Coffs Harbour tracked upwards over the June quarter, increasing 7.3 per cent to $486,500, with an annual growth of 12.5 per cent. The median weekly house rent remained steady in Coffs Harbour, over the June quarter and the year, at $400.

Dr Wilson said that coastal regions were high in demand, with buyer and seller activity continuing to flourish.

In the Great Lakes the housing market declined by 5.6 per cent over the June quarter, to a median house price of $485,000. Despite the quarterly drop, house prices in the area rose significantly by 9.9 per cent year-on-year.

Median house rents increased 2.7 per cent over the June quarter to $380 per week – up 5.6 per cent year-on-year.

The Richmond Valley recorded a significant 16.5 per cent drop in median house prices – to $265,500 – despite year on year growth of 4.7.

Newcastle experienced the greatest growth over the June quarter – 9.7 per cent – reaching $620,000 median house price. The quarterly increase is in line with annual growth of 23.5 per cent in the region.

Byron Bay’s median house price increased by 7.1 per cent, reaching a median of $910,000. Byron Bay had the strongest annual performance in regional NSW, with a remarkable 29.2 per cent year-on-year growth.