There was a jump in the number of properties on offer at Barfoot & Thompson's latest auctions but the sales rate was almost unchanged.
Auckland's biggest real estate agency auctioned 105 residential properties in the week from 29 October to 4 November, up from 80 the previous week.
Of those, 28 were sold under the hammer, up from 22 the previous week.
That left the overall sales rate almost unchanged at 27% compared to 28% the previous week.
Barfoot's Orders of Sale for the coming week indicate the number of properties on offer will be about the same as the week just gone, suggesting the lift in auction activity is being sustained.
Perhaps it is the start of the much anticipated, but so far much delayed, seasonal lift in activity that usually occurs in spring but has been late arriving this year.
Realistically there are now only six weeks left before the market starts going into hibernation for the Christmas/New Year break, so the next few weeks trading will be critical to how things shape up this summer.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the prices achieved on the properties that sold, are available on our Residential Auction Results page.
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78 Comments
Realization that if have to sell, earlier the better.
Many who were in denial or hoping that like past, this slow down in NZ will not last have come to face hard reality.
Going to Auction also is good for listing agent as it saves them from breaking the bad news to vendor - no buyer so reduce your expectation
Some people are getting good results at the auctions. Some pass in and get more by negotiation a short time later. Others take a gamble and take a hit.
From 28% success rate if one assumes that 'some'....it will overall be 10% or 15%, and same applies to 'some' which are sold after Auction.....still....MANY are left.....
Agree, till now only froth has been wiped and it is further fall from here on that will be painful.
Zachary is trying to recreate the froth, let him keep blowing, till he runs out of breath
Good luck with your sale Carinz
East Akld REA
for each seller there is a buyer. People's life circumstances change, upsize, downsize, relocating. Houses are primarily homes.
Zero sale's in Franklin... Not much of a lift there.
Under the weight of bloating inventory, the desperation quietly builds....
Desperation!
Pain!
Just the thought of all that suffering makes a trouser tent.
Pa1ter, so you swapped out that filthy trench coat?
Just grow up, stop the school yard bullying
Pot calling kettle black? Anyway HW2, don't take it personally as i interpreted the comment as more banter than bullying. Perhaps you've taken it personally because you are in fact Pa1nter? Its reads as a tad sordid, something that you would post in the first place - just saying.
Where's the report button
ok, while your doing that, I'll watch Jacinda's Cost of Living package and imagine the implications on inflation and interest rates going forward...
No worries at all, for various reason. Dont stay up too late, you have work tomorrow
Not really seeing much desperation.
Zach,...the key word here is "quietly"
Who wants to openly broadcast that they've missed the November 2021 lifeboat? November 2022 seems a lot different don't you think? As time ticks by, society will learn who the biggest fools really were.
Many entered this ponzi with unrealistic expectations. These expectations were installed by parents to their children. People like yourself in fact. To many holding this toxic pill, selling at the top is not only exhilarating, its a birthright and is non negotiable. Now its time to swallow.
Humans are resilient. It wont be as bad as you think. The loss of just paper gains for many.
Americans are humans too. When it turns to custard, they return the keys. Its easy for you to say "it won't be as bad as you think" Like me, you've got considerable equity. Many recent buyers have either already lost or will soon lose theirs. Its not so easy for NZ's to walk away from their commitments of choice. There is an entire generation out there that did not have any expectation of rising interest rates let alone falling house prices. If they did, we would not be in this position today.
Its a pyramid built by greed.
Edit
"Pedersen says one client, whose mortgages were on interest only, is now facing a $50,000 increase in annual payments on $1 million of mortgages thanks to the CCCFA changes pushing him onto P&I. That’s even before moving from an interest rate in the low 2% range to 6%-plus."
Should be able to pick up some deeply depressed slumlord's mouldy rot box in a gang infested area for a bargain bin price sometime next year.
(there, surely a comment that fits the current acceptable parameters or will it be regarded as spruiking? maybe)
Zach, you're now coming across as a frustrated Spruiker. Rest assured though, you've got a long way to go before you sound like a Property Broker. Due to your vested interests, I think zero deposit mortgages with an interest rate of 2.9% is your only panacea......
Dramatised depiction of Retired-Poppy haranguing the specuvestors:
Feeling haranguing? Watch this then.......
Your upbeat genre
Yup, I keep it for the very best of them. That's an hour Zack will never get back😭 He's been throwing his toys for hours. He's complaining that his property marketing comments are being deleted. Then he says he's "confused"
Deluded is a more appropriate word
Phew, just finished listening. Appropriate music for someone who posted a comment supportive of the price crash narrative, got sucker punched by admin, then set upon by R-P and his doom-gremlins, Christchurch schoolkid style, while he was down...
Honestly Zach, interest.co felt they had just cause to delete your comments then offer you the services of their Marketing Department. Despite finding out the hard way there's no free lunch for you here, your ego will survive.
How much did you get to drink before you summoned the effort to post this? You know you're down, just stay there, else you may be trampled by the falling prices...
I don't remember. Must have blacked out.
But surely as R-P says just light hearted banter. That whole thread was obviously meant to be humorous.
You'll see it when you take out your blinkers
As the market becomes flooded with properties with fewer buyers, the only option is to reduce your property price further so you can sell.
The buyers are certainly out there. Just at much-much lower prices. Probably another 25-30% to go before there's real support.
For TA to state that FOMO has evaporated, speaks volumes..
How does that speak volumes LOL
Eventually, in desperation to restore some credibility he may be forced to admit FOMO has been replaced by FONGO. He's already tried to stand in front of this slump and got bowled. Much like yourself, pa1nter and of course Two Face Tim.
He's been saying FOMOs been gone for ages, everyone has... there's no way you could say otherwise.
Yes and FONGO has replaced it. He has also said that buyers have a fear of overpaying. Knowing that, what do you think the sellers are starting to feel? Warm fuzzies?
Many sellers are celebrating once sold, they've just cashed in massive capital gains with little effort over the years they've owned...
yes, and the way you still talk the market up to be something its not, it's obvious you're not one of them! 😆
#latetotheparty
Makes zero sense... If I had sold for a good price and locked in some juicy capital gains I'd think the market was great...
Now you're just being deliberately obtuse.
The great TA called 'green shoots' on the 17th August 2022 in his racily titled article "Tony Alexander: Watch out - FOMO will return to the housing market in early 2023"
"Perhaps it is the start of the much anticipated, but so far much delayed, seasonal lift in activity that usually occurs in spring but has been late arriving this year."
Really?!?!? Six more properties sold than last week, how many for sale in Auckland?
I'm not really sure what's going on with comment censorship on this website. I made a comment that I thought was careful, reasonable and not detailing anything specific that had no hyperlinks that is now gone. It was replied to with some silly and unhelpful comments for sure.
We do not allow the comment stream to be used for marketing purposes Zach. Your comments were directing readers to particular properties that were listed for sale or to the same agency's website. We want to keep the comment stream free from marketing material so will delete those types of comments. If you are wanting to promote particular properties that are for sale or a particular agency you could talk to our marketing people about an ad campaign. I'm sure they'd be pleased to help.
That is understandable however previous comments had links only to properties that had been sold. Today's comment had no links but did mention the company that is the subject of this article so I would have thought that was okay. I was being really careful! I am not doing any marketing and have nothing to sell, just taking an active interest in real time property sales and commenting on outcomes as I have done for the last five years or so.
That's good to know Zach. But please keep what I have said above in mind when making any comments in the future.
I find that strange. He was linking to a property to make an observation, nothing to do with promotion or marketing. Those sorts of anecdotes can be interesting or even enlightening.
I actually thought the censorship was due to highlighting instances of losses which could be insensitive. I was hunting 'dead canaries' rather than marketing.
Didn't see the comment but definitely interested in examples of what's selling and what's not...
There's still some reasonable sale prices being achieved... you wouldn't think that looking through the comments section.
I love a good old anecdote too.
😂 tsk tsk tsk.
That's the thing though, the problem appeared to be linking to actual results, so trying not to be anecdotal.
Bizarrely, my observations were providing support for the 'crash' narrative. It's all very confusing. It suggests reporting on any sales whatsoever is verboten.
Precisely right, ZS is now trying all ways and methods of promoting 'his' properties
State facts and your comments will not be deleted
The opposite actually as ikmpaul found out too.
I wonder if we'll see some real desperation start to come into the market in December, particularly if the OCR jumps by a full percent later this month.
Or when the FLP ends
Oh, interesting point. I wasn't aware it ends on 6 December (I just looked it up).
But it's mainly for lending to productive entities like businesses right? ;-)
That's right, hence business lending has grown recently (true)
Maybe if it goes a full percentage point as that will certainly send a message to get your affairs in order before Feb 2023 but will it happen ? I have gone for 100bps a couple of times already and nada.
Looks like business as usual so far to me. Its going to take another couple of rounds of rate hikes, then a few months for that to have an effect to make a change. We may scrape on through to next year at this rate when the RBNZ only goes another 50bps on 23rd November then it all goes quite on the western front for months.
Interesting to read the UK CB CE saying that rates may not go quite as high as people (banks) think next year.
What I don't understand is how higher interest rates are going to help bring down the price of energy during a European winter. Energy prices have already quadrupled. Don't turn the heating on, you say. Yeah right.
I suppose the bloke selling log burners will be doing a brisk trade. And the lady selling woollen wear.
At some stage the agents and agencies are going to have to start telling the sellers the truth. If you want to sell, price is back to 2015 unless you have something special.
Otherwise they are going to more or less starve.
Currently back to 2019 prices if you want a quick sale. I've seen that but not anything like 2015 prices yet.
As of today, most houses in Manukau (CV between 1.1 million to 1.5 million) are having expectation of 1.150 million to 1.25 million ( Though many are not selling).
Next leg of fall will be meaningful.
Keep on dreaming mate, prices are now back to the last RV in July 2021.
Really, most houses are going much below July 2021 with few exceptions..
In the last two weeks in Auckland approximately 40% sold for above 2021 CV and 60% below. About half of those below CV were kind of in the ball park, within 100k. Seems not much different to normal times really. Of course auctions are not the whole market.
Selling for 2021 RV is a massive drop. Not long after these RVs were published properties were selling here ( Wellington region) for over 30% above the valuation. Checking through the auction results, there are a fair number of those selling well over RV that were sections that have been built on. These auction results represent very big real-time drops in prices.
At that time there was a peculiar COVID frothiness going on, particularly in Wellington. I seem to recall the consensus in Auckland was that the 2021 CVs were about right to a bit high. Sales certainly weren't fetching 30% above CV as a rule.
PS: I have now done a bit of analysis using interest.co's auction results and QV's property search website. I went back to June/July last year and checked 33 sales from the Auckland suburbs of Te Atatu South and Mount Wellington.
33 sales - 25 above CV (75%)
Of those that sold above CV there was 36.065M in sales with a CV of 33.190M - average of 8% above CV.
(Note small sample size and non expert analysis but you are right with a clear majority selling above RV around the time the new RVs were struck)
Correct, websites like Homes had over inflated prices and the second the new RV came out they all crashed overnight. Yes its trending downwards still but if you have no intention of selling and you know the cost of a new house just keeps on rising you are not really worried.
It occurs to me I should check what happened a bit later than June/July 2021. I quickly checked 12 properties in the Auckland suburb of Mt Wellington that sold in October 2021 and 10 out of 12 properties sold above CV with an average price above CV of 18%.
If this result is across all Auckland suburbs then it does look pretty bad or good depending on your perspective.
As per data you mentioned can conclude :
28% house selling, of which as per you 40% went at or above CV = 11.20% house going above CV and 16.80% of total sale went below CV and 72% houses were unsold.
You decide boom or doom.
More rate hikes coming, here and overseas. Long term average is 7-8%. Imagine for a moment if we overshoot and the speuvestors are refixing at over 8% in a year or two. Quite a difference from 2-3%.
I'll put the rent up speculand responds. Que tenant moving as there is a lot of new stock arriving. Then there is youthexit to Aussie, and no mass flood of immigrants.
Popcorn.
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