From The Timaru Herald

Timaru house prices are falling – but it's not the great real estate slump some observers have been predicting.

Commenting on February sales, real estate institute local president Warwick Jones said the unrealistic prices some owners were seeking, especially since new rating valuations came out in October, were affecting the market.

"Vendors expectations are just too high at the moment in a lot of cases.

"There are listings coming on (to the market) but there are more that haven't sold.

"It is only because prices have been off the planet on some properties. They have been totally unrealistic."

During February 74 Timaru homes sold for an average price of just under $204,000, while the median for the month was $178,500. Back in October the Timaru median price hit a high of $195,000.

The length of time homes were on the market before selling has also increased – from 19 days in November to 27 last month.

"I think that will start increasing as more property comes on the market."

Mr Jones doesn't believe going into winter is responsible for the slow up.

"For the last two or three years it hasn't made any difference at all what time of year you put your house on the market, the buyers were there.

"It is just hunch, an educated guess, there has been more of a levelling instead of prices escalating as they have.

"They are taking too long to sell because the pricing level is just too high.

"We are still getting very, very good inquiry levels, but buyers are being a little more selective. They are taking their time more, and not leaping in as quickly as they did.

"Sales are still being made, it is not too bad, but lower compared to two and a half, three years ago, when there were some pretty dizzying levels being reached."

Prices being paid in the rest of South Canterbury were still climbing with the February median hitting a new high of $189,500 on the 40 sales recorded, an average price of $196,926. The average price is almost $30,000 more than 12 months ago.

Nationally the median sale price for residential property fell $5000 to $295,000 in February.