FOR IMMEDIATE RELEASE

Vendor expectations push house asking prices back to 2007 peak

AUCKLAND - 1 April 2009 – The national median asking price for listed homes in March 2009 was $399,000, matching the pre-recession peak of October 2007. The data was released today by New Zealand’s leading property listing site Realestate.co.nz, in its monthly survey, NZ Property Report.

The largest regional increases in median asking prices occurred in Gisborne (prices up 21.5% on March 2008), Northland (up 13.2%), Nelson (up 12.7%) and Central Otago/Lakes (up 10.8%).

Auckland and Central Otago/Lakes remain the most expensive parts of the country, with median asking prices of $509,000 and $575,000 respectively. Coromandel saw the biggest drop in median asking price, down 12% on March 2008, while Southland had New Zealand’s lowest median asking price of $215,000.

According to Realestate.co.nz CEO, Alistair Helm, ``The current state of flux in the property market may be setting unattainable price expectations in the minds of vendors as to the worth of their properties. Contributing factors include recent media speculation that the market may be turning the corner, along with the lower interest rates that have been available through much of the first quarter.’’

``The relative shortage of new listings in what is an inherently competitive market, forces agents to secure new property listings by agreeing to list at what may turn out to be unrealistically high asking prices set by the vendor. It remains to be seen whether the market meets these expectations.’’

In the month of March 13,284 new listing for residential property came onto the market up 12% on February, the numbers however were well down on the same month last year (-17%). Total listings for the 1st Quarter 2009 were also down 14,000 or 28% on 1st Quarter 2008.

The full NZ Property Report is available on the Unconditional blog at: www.realestate.co.nz/blog.

ENDS