Activity continues to pick up in Barfoot & Thompson's auction rooms, in spite of the challenges presented by severe weather over the last couple of weeks.
The real estate agency, which is the largest in the Auckland market, auctioned 82 residential properties over the week from 11-17 February.
That's up from 68 properties the previous week and 27 the week before that.
Barfoot's latest Orders of Sale suggest their auction numbers will be even higher in the coming week, with February and March traditionally being the busiest months of the year for auction activity.
The agency's auction sales rate has also been steadily improving, with 26 of the 82 properties offered at the latest auctions selling under the hammer, giving an overall sales rate of 32%, up from 26% the previous week and 19% the week before that.
However prices remain soft.
Of the 26 properties that sold at the latest auctions, just three (12%) sold for more than their rating valuations while 23 (88%) sold for less than their rating valuations.
That was weaker than the previous week (4-10 February) when exactly a third of the properties that sold fetched more than their rating valuations and two thirds sold for less.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the prices of those that sold, are available on our Residential Auction Results page.
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64 Comments
Two weeks in a row. Not yet a trend though it certainly feels like things have changed. Its not to say it can't flip back if int rates get super ugly
What's wrong HW2? Have you given up on talking up rising rents as a leading indicator that a full blown recovery is imminent?
Green shoots? Here's one, term deposit rates are still on the rise for the patient savers. Prices are still trending down and the "wise" investor of yesteryear has fled the scene of their own creation.
The man wants pain via demand destruction. There's a lot of confidence to be vaporised yet.
Its not what I ever wanted to see.
I was replying to HW2.
The man being the authorities. Any investment or purchase involves a level of confidence, and the reserve banks are aiming to give that a good kicking.
"I get knocked down, but I get up again
You are never gonna keep me down
He drinks a Whiskey drink, he drinks a Vodka drink
He drinks a Lager drink, he drinks a Cider drink
He sings the songs that remind him of the good times
He sings the songs that remind him of the better times
(Oh Danny Boy, Danny Boy, Danny Boy)
I get knocked down, but I get up again...."
Good post Pa1nter. I see that Fhb have more confidence than investors... for now. I expect that will change, the ducks are lining up
"Fhb have more confidence than investors" - Naivety?
The full effect of fixed rate interest mortgage rollovers is yet to be felt. Regretfully, for a growing number, equity is vanishing along with viable sustainable financial solutions. As an aside, if the majority can still exit at a profit, the selling option remains attractive. Its going to get a lot worse. Its hard to see interest rate relief with persistent inflation.
A combination of whisky's, vodkas and hot showers first thing every morning is not the best solution :)
7:47 7:52 7:56
Any more revisions poppy
Edit: yes 7:57
Heaps, what about you? Have you been drinking again? Geeez, you do post some crap 😂
"Fhb have more confidence than investors" - Naivety?
Stands to reason. A FHB is more likely not to have gone through a period of economic downturn before.
Good old houseworks..... great to see your Chumbawamba approach to property investment - getting knocked down by reality but pretending it's all good with a drink in hand. Cheers to your delusion and keep it coming our little interest.co.nz spruiking friend.
Walked into that one 🤙
Am not saying anything much has changed for the better in terms of sales and prices.
I think you have to admit that there are cues out there, that anyone who is planning to buy should take seriously. Don't wait for more people to think the same way.
Its going to be a very interesting 6 months.
Sure is. House prices and car prices are going to continue to drop for at least 6 months.
I've heard 8000 cars were written off due to storm damage, that a big increase in demand right there, don't expect car prices to fall in the short term.
Time to sell the 4 year old hybrid less than 90k mileage. Already bought something cheaper as a run about.
mortgage brokers promoting 4.99% fixed 1 year
To be refixed at 8-10% next year, good luck with that.
Why not 27-53% ? Or any figure that fits what you would like the interest rates to be at ?
Really? That's very low! Do you know which bank this is through?
Its still a great time to buy. While others are still waking up and getting ready, the motorway is free and easy. But you know that within the next wee while it will be jumping
"Jump in the shower
And the blood starts pumpin'
Out on the streets, the traffic starts jumpin'
For folks like me on the job from 9 to 5"
Prices will bottom out this year, rising by the end of the year, good time to buy.....
Everything hinges on how long the reserve banks will keep things high for.
Good luck guessing that.
Might get a dead cat bounce but that’s about it.
They will hit the floor and the market will be stagnant for a long time. No need to rush or gamble where the bottom is.
As Warren Buffet would say, ignore the chatter and focus on the fundamentals.
A couple of weeks ago there was an article on this site that we are at record unaffordable levels. Nothing in the short term is going to change that. Interest rates are not going to rapidly go down, salaries are not going to rapidly go up. There is not going to be surge in competition.
The upside for taking gamble now with desperate seller, is still relatively small. Sure might be 20% or 30% below peak. But how much above the new equilibrium will it be (if at all)
Nothing in the short term is going to change that. Interest rates are not going to rapidly go down, salaries are not going to rapidly go up.
So you think the Fair pay agreement framework isn't going to kick wage inflation into an even higher gear? So far we have hospo, bus drivers and supermarket workers in the queue. Expect more once the first successful group gets a big bump.
As for rates.. They've dropped overnight before, its only a penstroke from Adrian away from happening again.
You can’t get blood out is a stone. Same payroll. Employers will just lay off staff.
Can't lay off staff when you don't have enough to get the work done as it is, noticed all the bus cancellations lately? not enough drivers, and they are contracted to deliver a certain number of runs, so firing staff is not an option. Wellington bus is having to bring in 100 overseas drivers and train them up. Jump on seek and do a search for "new world", supermarkets are already short staffed, ditto for hospo, plenty of places with hiring now signs.
Hospo - Link ,
Bus drivers - Link,
But you can always put prices up to bring more money in to pay the staff you need to get teh job done.. what are people going to do, stop buying food?. Worst case, demand drops a little and you aren't so understaffed.
If low unemployment is driving more inflation, what makes you think RBNZ will drop interest rates?
Good on you, Kiwiland. We have woken up to unplayable infrastructure costs. We go house shopping. Now THATS confidence. Respect.
Only 1/3rd sold and 88% below rv (mostly well below the rv) and rate increase next week.. all pointing downwards for prices
To be fair, some of the new RVs are ridiculously high so not surprising sales are below those figures.
Still plenty of downward pressure though, I'm on the fence about a 0.5 or 0.75 increase. In saying that I think the sentiment going forward for rates will be for more increases to come and remain elevated for some time.
That reminds me, do I bother getting my pre-approval renewed of just wait till next year....
Hence I specifically stated well below RV.. knowing how ridiculous the rv's are
NZ housing market is sucking in a lot of cash with buyers hoping that they will make gains and sell it later. Russian roulette?
People are generally putting what ever spare they have in the housing. The money is not going into any other investments in this country and that's not a very good on over all progress of the country.
On other developed countries families are encouraged to save for kids studying too and that results in investment in universities and colleges. That helps innovation and in turn prosperity for country with more educated individuals and entrepreneurs.
In this country we just want to buy a bigger house at an inflated price in the hope of selling it at more inflated prices in future.
The future is whole villages in Europe being sold for $1 because no one wants to live there.
When we do not keep it worth the next generation to live in the country, they leave.
Other things are being invested in, it's just the average layperson isn't usually involved, at best they might invest in shares but that's at the end of a long tail. In light of people starting their own business (where 80% or so of people will fail), you can see why housings seen as more attractive.
As for Universities, while I do value an education, it's becoming very marginal for a lot of people and societies whether the amount of tertiary education being undertaken is paying that high a dividend.
This week, I ended up selling the house for which I rejected an offer 2 weeks ago. It was to the same buyer for just a few thousand dollars more (not much). In the end , I think a fair deal for both vendor and purchaser.
Wow.. what an achievement.. c'mon guys open the champagne bottle.
Thanks DGM, it's nice to see you write a positive post!
Whether they are positive or negative is your perception... the issue is that anything that refers to property prices dipping is categorized as negative by spruikers such as yourself
I called your post positive because you were able to rejoice in someone else's success and you used words like "achievement" and "champagne" rather than being bitter, complaining and jealous. "Positive" had nothing to do with the RE market.
Jealous? You're clearly smoking something that's clouding your thoughts
This is what it sounds like
When doves cry
Why do you revert back to being angry DGM? BTW, I don't smoke, not tobacco, neither weed.
You seem to mix factual statements with your emotional feelings...
Grow up kid
Congrats. Any plans, just yay or nay will do
Is this the house you added a million dollars worth to by cutting down trees? Sounds like you did some price cutting too to sell...
Haha, no it's not that house. For clarification, I said that cutting the trees added about $500k, to be all up (with buying very well and other improvements) about $ 1 Mill.
Nay.
Congrats Yvil.
Thanks Llama
I can see an immediate future where Spruikers get overly excited with "cues".
Tepid interest from FHB's will be swamped out by persistent selling and continued price deterioration. Until there is substantial and sustainable interest rate relief alongside current levels of employment, any "cues" will likely turn out to be nothing more than "dead cat bounces in demand"
The great question is whether it's a matter of time.
Or is it the end of times.
*queue foreboding music*
People are going to be looking for cues everywhere.
ha-ha-ha, yeah. We've been there, seen this before and emerged out the other side re-educated - (albeit for a short time)
"Short time".
In farming, we expect to lose 1 crop from 7. No income. Then the other 6 of varying yields and rates, and hopefully the average is enough to generate a surplus.
It's been so long in the wider economy that people expect guaranteed security. I guess we'll see how much resilience has been added to our lending practises since the last one.
Resilience added to (housing) lending practices is massive. From what was the norm during pre gfc days. Accordingly the 2017 to 19 downturn was merely a whimper.
If anything I worry about corporate lending like 3b to Ryman healthcare (and others lurking in the shadows) and whether shareholders will fully subscribe their cash call.
PS I'm so confused whether you are a vegetable grower or doing construction. How well did you survive the attack of the 'clones
I have a couple of hats rather than everything in one basket. No cyclone here (Sth Island), but the high rainfall and lack of sun over summer will make for an interesting harvest period, lots of fruit, but it's going to take longer to ripen.
Great post RP
Cues to buy and queues to sell
That's a good come back too !
32% of FA
Very poor result given vendors have finally been adjusting their expectations closer to where purchasers are at. Shows reductions are still too little too late.
Yes, that's what I thought. We're in peak buying season, you would expect an uptick especially with vendors having a better understanding of market realities than a year ago.
Quality (in design and/or price) will always sell, so 40% should be a minimum at this time.
The floods will bring inflation. Just when we were getting on top of demand and you could see that building companies would be starting to get squeezed, off we go again.
The fundamental problem for houses is they have inflated in price to beyond the ability for people to buy them at anything more than 3% interest rates, and those rates are not going to be anywhere close to that in the next 12 months unless there is a proper recession. Which doesn't really look very likely at all
Vendors are possibly more prepared to meet the market?
Especially those with clifftop properties? Or below a ridge? Or by a river?
Too soon?
No, because there will not be a market for those properties
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