Real estate sales figures issued yesterday show not only are fewer houses selling, but for the first time significant price drops in Wellington, Manawatu, Wanganui and Auckland, reports the Dominion Post.

Reinz national president Murray Cleland said it now took nearly two months to sell a property on average and 3000 fewer homes were sold last month (4305) than the same time last year (7474). The market was consistent with other economic indicators.

"There isn't a lot of confidence in the residential property market at present."

Meanwhile, some desperate vendors are offering "free" cars and overseas holidays as buying incentives. A brand new car worth about $20,000 is being offered with a $345,000 three-bedroom Carterton townhouse, while another Wairarapa seller is offering a free landscaping package. Others have tried to lure buyers with holidays to Australia.

Though the incentives encouraged buyers to come forward, Property Brokers Wairarapa manager Paul Joblin was doubtful the tactic would work. "My attitude to it is simply that if a car is worth $20,000 then the house is being discounted by $20,000 and does the buyer really want the burden of another vehicle?"

Another approach has been taken by real estate company Professionals, whose Lower Hutt branch has set up a website - www.desperate.co.nz in an attempt to get vendors' properties seen in the crowded market.