There was certainly plenty of activity in the auction rooms last week which had their busiest week of the year so far.
Interest.co.nz monitored the auctions of 619 residential properties around the country last week, up from 491 the previous week.
The number of properties that sold under the hammer also took a jump to 212, up from 154 the previous week.
The overall sales rate, which is the per cent of properties auctioned that sell under the hammer, also rose last week but only marginally, rising from 31% to 34%.
So far this year the sales rate has tended to remain a few points either side of 33%, meaning roughly a third of the properties being auctioned are typically selling under the hammer.
Looking at the auction results on an annual basis, interest.co.nz monitored 1851 residential property auctions over the four weeks of 3 February to 1 March this year.
Of those, 636 were sold under the hammer, giving an overall sales rate of 34%.
Comparing that to the equivalent week of last year (4 February to 3 March), when the market was heading into a prolonged slump, just 976 properties were auctioned and 362 were sold under the hammer.
So the market this year is twice as busy as it was a year ago, but the sales rate has declined slightly, from 37% last year to 34% this year.
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41 Comments
Not sure about those figures to be honest is that like Barfoot only ? I got an e-mail from Ray White where I am and they claimed 50% of their properties were selling at auction not 30%. The sample size is now so low its worthless, there are now 1200 properties for sale here, clearly auction is not the way to go and far more properties are being sold by other methods.
There have been recent examples, especially in the last month, where two or more bidders got seriously carried away and paid - IMO - way over what the property is worth.
Sure, this happens all the time. But for any stats to be meaningful (IMO) such outliers need to be removed / adjusted. When I adjust the sales value to something more realistic, the 'percentage selling above rating valuations' look less flash. While comparing to the RE site's valuations (Homes, PV, Onewoof, etc.), it is even less flash.
My take remains - the market is moving sideways with a slight tilt towards lower in real terms. Winter? I have no firm view but I don't believe a small OCR cut will change this one bit. Rentier friendly government action might tho.
I was following auctions for Central Auckland this week on this page because there were so many on the market it could give some decent data. When I looked at properties at a more normal price range based on the results on. I was looking specifically at anything with a CV between 750k-1.5mil.
In that more "normal" price range for the area, not one sold above CV (out of 15). On average prices sold for were 17% down on CV. Given auctions are probably the best chance vendors have of getting a reasonable price, I think says a bit about where the market is at right now in the city at least.
Let's just look at the FACTS.....as they happen.
So on that note, regarding the Auckland region:
34% sold out of 497 - so 169 properties sold
Of those 169 properties, 31% broke even or made over the rating valuation CV – thats 51 properties out of 497 (or just under 10%)
While that wouldn’t include cost of the sale - RE fees/conveyancing etc, so there could be a loss there, reducing that just under 10% figure.
So for all you property bulls out there, with the CURRENT economic climate and the higher interest rates, give me just 3 reasons why sales (in volume and value) could go up from here ?
Yep, that's how it works around here .....don't let the facts get in the way of a spruiker's opinion - pathetic.
You stick with your property and the current "warped", "inflated" system - and I'll stick with my BTC.
I trust the people in Crypto, way more than I would trust anyone in Credit Suisse.
I recommend FHB's read ...'The Great Housing Hijack" Cameron. K. Murray ....
"The reality is that, underneath this charade, every current home and every possible future housing development project is owned by someone—the landlord investor, the speculating land banker or the housing developer—and every economic gain for them is exactly ,equal to an extra cost for a new buyer or tenant. This `owning' side of the market is driven by their desire for investment incentives so as to maximise their economic gains from the property they own; they are not interested in minimising the prices paid by renters and first-home buyers."
"To avoid the truth that 'affordable housing' means less money for landlords and speculators of housing development sites, the property owners as a group work hard to portray their interests as, strangely enough, identical to the interests of the renter. There is a relentless and well-funded propaganda machine that makes sure that no one realises that, if there is a successful change to make housing prices or rents cheaper, they will lose billions. These groups will never propose such policy changes. They have hijacked the housing debate."
Now rates are at a normal levels the average wage families have no chance of buying a home and still be able to buy essentials. The ones who did manage to purchase when rates we low will spend the coming years paying way more than they can afford, many will be in huge financial difficulties and unable to sell because prices have dropped 20% from highs. Eventually prices will drop and more people will be in negative equity this will be why the housing market is being flooded with people desperate to sell before next phase of crash gets in to full speed.
I am not sure if article is good or bad news, I hope the properties sell or keep their tenants, as mentioned on a previous post I rented out my house in Te Atatu and it took less than 48 hours this weekend. Majority of viewers mentioned their landlords are selling. There is good tenants and interest tax deductibility is at 80% soon. House prices flattened. In danger of being called a spruiker I just bought again and cash flow is getting better. Did Warren B. not say buy when everyone is selling or sell when everyone is buying.
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