How is the property market in Gisborne, NZ right now?

I think the best way to describe the residential housing market in Gisborne NZ is to say that the recovery is fragile.While there are several houses selling each month in Gisborne City, the number of sales has not returned to the stronger levels we saw during 2006 and 2007. The monthly total sales during the peak were averaging over 65 sales, with some months recording above 80 sales.  Right now, the sales over the past 12 months have averaged out at  41 homes being sold per month. October hit 42 sales after a poor September, but I am predicting a similarly low number for November.

It seems odd, given the low interest rates being offered by nearly all lending institutions, together with the lower prices that more buyers are not making the most of this opportunity to secure some quality residential homes. In Gisborne the unemployment hasn’t risen dramatically, but I guess in light of the downturn that many businesses and industries are experiencing, the air of cautiousness to commit to higher mortgages is holding people back.