GISBORNE’S housing market is finally showing signs of a rebound, with the number of houses listed rising by 41.4 percent during April and up by 28.1 percent on the same time last year.

In May, 42 houses and four sections were sold in Gisborne — up from 29 houses in April.

The median sale price rose by $20,000 from $220,260 but, with relatively small volumes compared to large centres, median sales prices can be unreliable.

Some of this might be related to banks easing their tight reins on lending of the past couple of years, during which it was almost impossible to get a loan without at least 20 percent deposit, and an above- average income and savings track record.

Banks have started to lend on 5 percent deposits again for some customers, with signs of increased competition for borrowers.

The fact that banks were “freeing up their purse strings” was certainly making a difference, said Real Estate Institute Gisborne spokesman Philip Searle.

He believes it is also because people are starting to regain confidence in the market after holding back for the past couple of years.

Median days on the market had reduced to 39 in May, compared with an average of 50.6 over the past 12 months, which was usually an indication that market prices had stabilised.

“Sellers and buyers have a closer expectation of what properties are worth in today’s market,” said Mr Searle.

“When sellers expect too much, and buyers expect to pay too little, properties tend to sit around until the market settles.”

The average three-monthly median sale price over the past 12 months was $235,375, showing that over the past year the median had moved back only 3.6 percent. This probably indicated the market had found its level.

Sales over the past few months had averaged 30.5 house sales per month, so the lift in May was a welcome sign and the industry hoped it would continue.

“Gisborne traditionally saw 50 to 60 sales a month, so we still have a way to go,” he said.

The past three years had been particularly tough for most working in real estate and a significant number had moved on to other work, Mr Searle said.

Another long-serving agent says the number of sales agents used to be in the mid-60s and is now believed to be in the 40s, meaning that in a good month, each agent could get an average of one sale.

The Real Estate Agents Authority says there has been a 28 percent reduction in people selling real estate in the Gisborne-Hawke’s Bay region.

But Mr Searle says anecdotally, agents are reporting more market activity, with more buyers visiting open homes, more offers being made, and more contracts becoming unconditional, which reflects reports from around the country.

“Considering that we are coming up to the middle of winter, this is a good sign as usually activity drops off somewhat at this time of the year,” he said.