Residential property auction activity took a surprising tumble at the latest auctions with the number of properties auctioned, and the number selling under the hammer, both declining.
Interest.co.nz monitored 291 residential auctions around the country over the week of February 3-9.
Of those, 102 properties sold under the hammer giving an overall sales rate of 35%.
Those numbers were both down on the previous week (27 January - 2 February) when 315 properties were auctioned and 131 sold under the hammer, giving an overall sales rate of 42%.
The first week of February is an important one on the real estate calendar because it is the first week of the main summer selling season, which lasts at least until the end of March.
Significantly, the sales rate of 35% was slightly less than the sales rate for the equivalent week of last year (4-10 February 2023), when 37% of the properties offered sold under the hammer.
And the auctions at the beginning of last year marked the start of a sustained property slump.
The latest rather weak auction results come after two other sets of data which may suggest a fairly soft start to the summer selling season.
Firstly, Realestate.co.nz has reported high levels of stock for sale at the end of January, while Auckland's largest real estate agency, Barfoot & Thompson, has reported a slow start to the year.
The Real Estate Institute of NZ's January sales data is due out next Wednesday. That should give us a few more clues about how summer real estate trade is shaping up this year.
The table below shows the latest auction results in each district, and details of the individual properties offered at all of the auctions monitored, including the prices of those that sold, are available on our Residential Auction Results page.
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42 Comments
The Central suburbs in AKL have the highest CVs
Utter nonsense, IT GUY. You display sheer ignorance in making such a sweeping generalisation......
In fact, a good chunk of central Auckland has some of the lowest CVs across the entire Auckland region. It's over-represented by a large volume of small apartments which are often leaky and structurally suspect - with noisy plumbing and inhabitants - as well as dysfunctional body corporates. Ugly too. Values are destined to fall, in my view.
You've been hanging around here for long enough, IT GUY, so you should know better. Misleading/deceptive generalisations are unhelpful to robust dialogue.
TTP
Percentage of RV is not a great indicator as RVs are updated in differing areas all the time. I usually just look at the Auckland % RV data. Central suburbs and Manukau both had RVs last updated in 2021. To have 90 properties in these two areas sell and only somewhere between 11-15% of them achieve their 2021 RV suggests we are correcting back to precovid times. Not long til the REINZ HPI comes out, then we will really see.
Demand is being sucked out of the economy at an increasing rate. Mostly due to renewal of mortgages at higher rates. Notice how many cars on sale at roadsides in Rodney since mid Jan.
Rates we are now told will likely not fall til 2025
Deluded ideas that prices and or sales will rise before Sept at earliest. Market had its blow off top driven by silly rates and mortgage holidays. Now the doldrums I am afraid. A 40% rise in prices in 2 years has to be compensated for by below average market for 3 years minimum. Look at 2014-15 and then witness what happened 2017-20
But but but.......the likely debt monkey, needle pushing suspects, TA, AC, SQUIŔEL rooster and TTP were all working in unison over the last few months attempting to suck in a new set of gullible housing Ponzi backers.........its all failing for them spectacularly now!
The radio waves and websites have been blaring their self serving, debt enslavement, yet failed messaging.
More egg dripping from their clown car driver faces is comming in 2024/2025/2026, as home prices retreat yet another 20% in many areas, to start, as they continue to move towards reasonable affordability.
2024 sales prices have been a shocker already, as many homes are selling at significant losses.
This will continues as the cost of borrowed debt nooses are set to stay tightly elevated, likely higher and suffocating.
True. The sales rate or the ever increasing housing stock are not affected by the holiday, though. Nor is the perspective of 'higher for longer'. Neither the insane price to income ratios, which have been at unsustainable levels well before 2015 (not a typo), but somehow we all pretend to have forgotten about that
China will certainly weigh in on the year ahead...Not sure National / Act / NZF will be the musketeers many had hoped for ... problem I see with restructuring and cutting fat is it initially comes at a high cost and the returns tend to be far off .... Havent got a clue as to why you would drop the Auckland fuel tax other than maybe to replace it with tolling....but you would need to implement the latter swiftly...all in all...Does anybody actually know what they are doing.....lol .... Should we be spending millions pondering the Treaty again ? Isnt the lead up week to Waitangi day every year sufficient for that? Much bigger problems floating in the pool of despair from where I sit....lol Uncertainty, possibly more than many NZers have felt in a very long time ... and without sound policy and direction....it will grind on . I dont think flipping houses to each other is gonna cut it ...this time round... Im thinking instead of building anything at all in Auckland the money would be better spent developing and attracting investment in the winterless North (the final frontier...lol) .... Aucklands 'full up mate'....throwing money into Auckland is full of complexities ... elsewhere less invasive on population and cheaper labour pool available..bonus is untapped potential including tourism... social ills should melt with large scale development....never mind carry on throwing money into the Auckland bucket that leaks like a sieve... My 10 cents ... lol
Over coffee this am I was discussing NZ with Mrs IT Guy, it seems to us all we do here is agriculture, forectry, fishing, building houses ...... we just make so little here now.
We have tourism though thats dependant on foreign economies... and thats looking sad, anyway its a low $$ game and most get paid minimal while working for offshore owners. We seem to be ok at selling delayed Aussie entry visas. You just need to work here at $28 an hour for the qualifying period.
Having so little productive income house prices must fall as they can no longer be afforded by the next generation, my own kids want to goto Aussie ASAP so they will not be buyers.
We dont even hire New Zealanders to work in the tourism industry, they're all immigrants, mostly those on working holiday visas or brought in under the Accredited Employer scheme to work for low wages because the unemployed dont want to clean hotel rooms or wait tables.
Tom Rawson, director and branch manager of Ray White Manukau, said falls would be a good thing because the 2021 rateable values were set very high.
“I think people have been seeing the rateable value at the moment as the top end of what the property could be worth rather than what it is worth.”
RVs that were too high can be a problem, he said, because they put potential buyers off from even looking at properties that might otherwise be within their reach.
There you have it, falls are a good thing..... Spruikers have no shame, so another 20% will be a great thing, by then FHBers will be more active thus more commissions will occur.......
Speaking of CVs. Why’s no one talking about this article?
Many AKL suburbs about to be adjusted -10% or more down from their 2021 highs.
This is not going to bode well.
‘Reality check’: The suburbs at risk of falling RVs‘
https://www.oneroof.co.nz/news/reality-check-the-suburbs-at-risk-of-fal…
Who would have thought that Pt England, home of so many 501s could fall in price? that shooting would not have helped....... Maybe it could be renamed Glen Innes Heights?
WGTN gets proper F%4ked...
Not the the article clearly states falling CVs will probably not reduce your rates bill....... who could have guessed
Real terms. $ losses plus inflation losses.
I laugh when supposedly knowledgeable economic types (property market skimming spruikers) say property is the best inflation hedge!
It has been totally awful over the last 3 years just as it was over the 1970s/80s
We are already down 20 to 30% given the real losses, where property has been the worst inflation hedge among most asset classes.
Coatesville has done ok, around here in wainui/waitoki , good horse properties are selling above CV, life is short people with money still paying for lifestyle, shitboxes in the city, not so much. central city suburbs been smacked hard though so what people thought was safe has not been, perhaps WFH helped as well....
smaller 1H properties are not selling people want lifestle with options
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