The auction rooms are starting to crank back up, with Auckland's largest real estate agency taking 22 properties to auction last week.
Of the 22 properties auctioned by Barfoot & Thompson, nine were sold under the hammer or by 5pm the following day, giving a clearance rate of 41%.
Results varied widely between auctions, with just one of the seven properties offered at the Manukau auction selling by 5pm the following day, continuing a trend that was evident toward the end of last year.
Better results were achieved at the auctions in Barfoot's Shortland St rooms in the CBD, where most of the properties offered were from central and west Auckland suburbs (see table below).
The prices achieved on the individual properties that sold and the details of those that didn't sell, are available on our Auctions/Sales Results page.
| Results of Barfoot & Thompson Auctions, Week Ending 27 January 2017 | |||
| Venue | Auctioned | Sold* | Not sold |
| 25 January, Manukau Sports Bowl | 7 | 1 | 6 |
| 25 January, Shortland St, CBD | 9 | 5 | 4 |
| 27 January, Shortland ST, CBD | 6 | 3 | 3 |
| Total | 22 | 9 | 13 |
| *Sold means sold under the hammer at auction or by 5pm the following day. | |||
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27 Comments
Yeah cos that's worked well for the last 40 years.....not. Yes it has peaked a couple of months ago but don't expect a crash. If you bought a house as little as 2 years ago your still up 20% on the North Shore so playing the waiting game has been futile. Expect the players to simply "Hold" and unless the economy tanks and you can afford to continue to pay the mortgage your still a winner long term.
Something I believe its been discussed already...
But, until early 2016 Auction clearance rates were close to 99% on the Auction day
Nowadays we are seeing clearance rate up to Next Day 5pm with negotiation closing happening.
And not even reaching 40%
But if we compare APPLES with APPLES, Clearance Rates are around 20% TODAY Compared to 99% 1 year ago.
Truth been told
Yes I agree that the auction results are not good. Not just are they low in results but they're exceeding low in volume. So properties going to auction at t moment are the ones they think they might be able to sell other wise they would be withdrawn or go for sales as Negotiation or priced.
Also look at what they've sold for most are way under the million mark so that indicates Kiwi buyers not wealthy Foreign Buyers which is what are missing and why prices are dropping.
If someone wants $1m offer them $500k. People need to make brutal offers to match the desperation. People have been paying too much now is the time to shop around. It'd be dumb to make market offers.
If you look at trademe there are a lot of people cutting their price expectations (but still asking too much).
I tend to prefer the term 'Cheeky Offer' rather than brutal offer. But yes Sellers need to be more realistic, this will start to dawn on them over the next few months as their property sits unsold on the market. My advice to FTB's is you need to play the waiting game to get a more affordable and realistic price.
....and...let's clarify what 'Sold the next day" means! Does it just mean 'under contract' or actually 'sold under auction conditions' ie: unconditionally?
Experience tells me that to get a property sold under auction conditions it either has to be (1) Sold PRIOR to auction ( the auction is cancelled as the buyer doen't want to take the risk of open outcry, and has to adhere to the terms as though the auction went ahead) or (2) Under th hammer. All other 'after hammer' deals can and should be subject to a range of conditions that can be negotiated by the buyer, just the same as any sale.
If the 'sold the next day, = after-auction conditions, then 'subject to finance' or 'builders reprot' or whatever, can see the 'sale' fall over.
"Sold at Auction" = Done Deal. Anything else may or maynot be a sale, and if it falls over it will quietly emerege as a re-listing and I doubt those stats quoted above will reflect a revision!
These stories are not well reported. Auction numbers should be the numbers under the hammer. Too many dreamer prices out there still, but times are a changing. Just visit the auctions or check TradeMe.....interest rates are making everyone think twice (myself included) the market is changing for sure and the data being provided on here isnt the whole story.
Coffin Homes - this is the future - Auckland isn't there yet
"Coffin" homes become increasingly popular in Hong Kong as property prices skyrocket
https://www.domain.com.au/news/coffin-homes-become-increasingly-popular…
Didn't attend these auctions, but did attend Barfoots Auction this week. Two sold under the hammer (both with two bidders each). There were ten lots available. Low volumes, so hard to tell what it going on - packed room but no one bidding. Having said that...some unrealistic vendors out there. Opening the bidding at $1 million for a non descript 3 bedroom in New Windsor is still the height of crazy...
Nothing is for sure with the property market at the moment, however, purchasing now while a lot of people are under the imprecision that the house prices will fall significantly puts you in advantage of a good deal and you wont have to worry about the interest rate spike compared to a few percent of house fall, could mean you may not be able to afford at all if you wait. A few thousand dollars less is not worth the gamble.
"A few thousand dollars less is not worth the gamble." Quite right, and that works on both sides of the equation. Getting in before a rise is always satisfying - spending those extra few thousand dollar, but the one that's the real killer - the one that hurts the most ( financially and mentally!) is failing to get out in time for the sake of a few thousand dollars. Human nature will tell all of us "I'll sell when it goes back up" and waiting and waiting and waiting. That may work, but if it doesn't selling when the pain is most extreme ( "How much further can it fall?!" is a constant question) is the worst lesson most of us will ever learn.
When a super-cycle turns - and it's never noticable until it's way too late - it isn't for a year or two, or even a decade or two ( ask the Japanese about that!) it's for 70 years or more.
Auction houses will have lots of interested parties in attendance watching closely to trying to pick the trend early. Either to jump in before the next surge, or to identify the fall early so they can convert capital gains before the stampede towards the exit (super cycle greed decision indeed).
A lot of headwinds building for the specuvestor. Election Year (focus on immigration and investor tax), Winston promising both of these, Chinese capital controls, interest rates rising, Vancouver tax impact, clear anti globalization sentiment (Brexit and Trump).
What we need to weigh up is what is the biggest head wind? Judging by the most major change; absent foreign buyers and that the Capital Controls in place; these are likely to last for quite a while possibly even years. And then evaluate how much the market is going to fall by with the current climate?
Most were sold during post-auction negotiations. See this lovely Mt Eden villa on 5 Atanga Ave ;-)
https://web.facebook.com/premiumhomesales/photos/a.423945307635042.1132…
I sense the type of buyer has changed. There are still plenty of buyers in the market however the mix has changed. The amount of rampant buying at any price Chinese buyers has subsided due to exchange controls and the leveraged investment property mob have been frozen out of the market by banks. That leaves the more "normal" types of buyer. I.e. Those looking for a home to LIVE in. There are quite a few affluent people(western immigrants) looking to buy but are being selective about what price they pay.
I don't subscribe to the imminent property price crash but I think property prices in many areas have peaked.
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