The market is definitely a lot more sluggish than at the end of last year.

The market appeared at first sight to take some heed from the Reserve Bank's recent warnings, with a drop in sales, but January sales traditionally dip.

The fact that they don't charge commission based on a percentage scale does not, in our view, enable them to operate outside the act.

The rate of annual growth has been slowing as would be expected, with most of the rise in the market having occurred in 2004 and 2005, but now the price growth curve is flattening out and the market appears to have reached a comfortable plateau.

The flip side is that mortgage interest rates are now in decline, which will give the market a little more confidence as the year unfurls.

Sales are starting to get back up there after the holiday period and prices show no real sign of weakness.