Average house price still up on last year

Media release – February 14, 2008

Average house price still up on this time last year says real estate company Homesell

Average house prices are still up on this time last year, New Zealand longest-running private sale real estate company, Homesell said today.

Homesell director Kirsty Gillespie said while the market is in a downturn from a few months ago the prices are still strong compared with 12 months ago.

``However, as fewer properties are being sold, it is likely price reductions will follow as those desperate to sell want to settle for less,’’ she said.

``Our business has increased against the declining market as people who may have just used Trade Me are seeking other marketing tools such as colour property paper, street sign, brochures, open home signs and flags. They know they now need to raise their profile rather than just use the internet only.’’

By selling privately people have far more room to negotiate with their buyers than by using an agent, Gillespie said.

A slowdown in the real estate market has served to increase Homesell’s activity and business, she said.

More people will market their homes privately this year as they seek to keep a high return for their sale or some leverage room so that they can price their homes slightly more competitively than an agent to achieve a quicker sale.

Homesell, with its head office in Canterbury, is the longest running private real estate company in New Zealand and they have marketed over 7000 homes around New Zealand since 2002. Their biggest market areas are Auckland, Christchurch, Hamilton and Tauranga but have franchises throughout the country.

They arrange for homeowners to sell without having to pay a real estate commission. Their upfront fee of one average less than $2000 - well under 1 percent of property sale price on average - is for advertising homes in a free property paper, street sign, open home signs and website. They say some owners have saved WELL over $30,000 by not having to go through real estate agents.

Photo: Homesell directors Kirsty Gillespie and Ali Clarke (see photolink) : http://www.homesell.co.nz/aboutus.php

ENDS

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