The volume of houses sold last month dropped 10 per cent from a year earlier as the number of properties on the market continued to shrink, according to the Real Estate Institute of New Zealand.

There were 7299 sales in July, 10 per cent lower than the same month a year earlier, and down a seasonally adjusted 3.6 per cent in the month. Inventory shrank by a third, though steady demand meant prices continued to rise in the month, with the median sale price of…