There was a bumper crop of residential properties brought to auction by Barfoot & Thompson last week but the sales rate only just made it past the half way mark by the barest of margins.
The agency offered 356 properties at auction last week (20-26 November) up strongly from 259 the previous week.
Of those, 179 were sold under the hammer, up from 141 the previous week.
However that means the sales rate only just scraped past the half way mark at 50.3%, with just two more properties selling under the hammer than were passed in.
The sales rates dipped below 50% at the auctions for properties in Northland, the North Shore, Waitakere and Manukau but were above 50% everywhere else (see the table below for the district-by-district results).
Barfoot's overall auction sales rate has been in a steady decline for five consecutive weeks, as shown in the figures below:
- 16-22 October 68%
- 23-29 October 67%
- 30 October - 5 November 62%
- 6-12 November 59%
- 13-19 November 54%
- 20-26 November 50%
That could suggest that the exceptionally buoyant market conditions apparent for the last few months are starting to settle down, and vendors will need to take care in making sure their price expectations are realistic.
With almost half the properties being offered at auction now being passed in, agents with good negotiation skills will be proving their worth as they attempt to close the gap between the price vendors are hoping to achieve and what buyers are prepared to pay, during post auction negotiations.
Details of all of the properties offered at the auctions monitored by interest.co.nz and the results achieved are available on our Residential Auction Results page.
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44 Comments
Let’s hope this is just the start
Listings also through the roof in every Auckland suburb I watch....
Alot of crap coming to the market with 'development potential'... Got to wonder how many developers are out there to buy all these tear down homes with land? No doubt, vendors are asking for a premium too as there's just 'so much potential'.
Its the land and the zoning. House will be demolished so of no real concern unless its chocka of asbestos etc. All the speculators think this makes it gold plated. In some case it does.
I'm now getting daily real-estate spam about listings having gone to "by negotiation" or "fixed price". The asking prices however are still firmly in clown territory.
I have a feeling that like in the tale of Icarus, Auckland house prices have flown far too close to the sun. It is a very long way down when your fake wings melt.
I hope you're right. We've been trying to buy (950k budget, 250k cash + 700k loan), we watch pretty much all the auctions of the places we're interested in.
Constantly see property being passed in at 1 mil then change to 'by negotiation'.
Contact them and ask how much they want, all come back with 1 mil + price.
I would have thought if no one is willing to pay at 1mil then price should adjust down not up but apparently not so.
Auctions are only good in a hot market. There is a very narrow window of marketing, usually 4 weeks tops, sometimes even less to find a buyer that likes it and actually wants to pay the asking price. Its like Trade-Me, unless its a bargain you have to be patient and wait for the right buyer.
Thing is people don’t have to sell, they will hold it if they not getting the price they want. Holding long term, easy to sell hard to buy back. Many are happy to hold even if they are chipping in cash every week.
It's actually the other way around. People never must buy. They can always rent as an alternative.
But quite often sellers must sell.
Death. Debt. Divorce.
There are plenty of times when buyers 'must' buy... like now when the govt and rbnz is about to make home lending harder to get. I'm sure you think it means houses will drop in price.... dream on brock you need a berocca brock
Most people have learned the difference between a want and a need by age 5. You'll eventually get there too, champ.
It is true that I subscribe to reality instead of the "it is impossible for house prices to fall" myth.
Whether that happens next week, next month or next year is up for debate. But it will happen.
HW2.. so you reckon house prices won’t fall over the next 24 months? I’ll take that bet.
I think it’s good fortune that fhb are getting rebuffed by the banks. They’ll be able to enter at a much lower price point in a couple of years.
We're completely priced out of having even just a small townhouse in Auckland. And we're on a combined income of 160k with a decent deposit.
Logic would say as credit is harder to get, price will have to adjust accordingly. But logic hasn't prevailed for years now so I can only hope you win that bet.
House prices are furkin nuts at the moment and not logical. Many of the commenters on interest go wrong because they try to use logic and bias instead of instinct. Keep working on it, dont fall for someone's overpriced mansion, look for the house that suits you even if it is not your forever home.
Lol, you should never use your instinct to make investment decisions. If you do, you will fail pretty badly. You might be lucky for one or two times. But that's about it. I reckon if you want to try your instinct, go to a casino.
But if he cant afford it, at that combined income, somethings got to give. Must be the same for a lot of people.
Better off renting anyway, we have a great place renting. I'm shipping stuff around the world from my lounge, selling on online market places around the world, moving into a new area this week. Build up my asset base while renting. In ten years, hopefully have over 100 products selling with 30% ish profit margin. Piece of cake to continue to grow, even when I'm old, only do it for fun, as I will have plenty. Do it while cruising the world travelling surfing. Property sounds like hard work, plus you need all that money for deposit, when I can buy income generating assets.
Plenty of ways to skin a cat, just need to look and take a risk. But its not as risky as buying a house at the moment.
You better get your one-eye checked in case something happens to it... as for me I will continue to keep both eyes open
I would definitely be holding off right now if I was a FHB.
Quite likely that prices will fall at least 5-10% over the coming year, also don't be fooled by the rising mortgage rate narrative - harder economic times are ahead in 2022/2023, yes the OCR will rise a bit more but it's quite likely it will be cut again in the next 18 months.
Personally, I would be looking at July/ August as a time to buy. Buy when prices fall back, go on to a floating rate, then await rates to lower again in late 2022 or 2023 as the NZ economy weakens.
Anyway, that's just my view, everyone has different circumstances and drivers.
We bought a smashing lakeside home in august last year for what I thought was underpriced. Was the time to buy.
I just hope people who listened your opinions that fixed their interest rate for 2 years won't regret after 2 years.
“They can always rent as an alternative.”
That’s the point.
They are hoping for some unwitting buyer to come along and pay their price. Sit tight, don’t buy high. Put in sensible lowball offers, with conditions that suit you. See what happens. Houses are like buses - there always another one coming along.
Tomyam try and get yourself in a position to bid at auction. Agents walk over hot coals to get deals done on the day. No one wants to be dealing with conditional buyers once a property is passed it. That's hard work. Agents want it clean. Just make sure you hold your ground, don't bid against yourself and be prepared to walk away. Mentally it's gruesome. However, it's the most transparent part of the process right now. Good luck. You deserve to be a home owner. Good salary, good deposit. How on earth did it get this hard?
Greed. Over cooked stimulus response and a Mainstream media frenzy.
Let me summarise. Agents just want to get paid, hence the push for auction at all costs. Mainly the vendors cost.
Yep many listings changing from Auction to By Negotiation. Some even coming straight on the market with asking prices. I'd hate to be someone that had just over committed on the next rung on the ladder and was panicking to get their existing property to market.
Will this be the high water mark for Auckland property? The one future pundits point to: https://www.trademe.co.nz/a/property/residential/sale/auckland/auckland…
North of $6m for a property on just over 400 sqm just seems so completely ridiculous to me... true evidence that as a country we have lost the plot
Especially when there is zero outdoor/indoor flow.
For that price I want perfection!
Subscribe to the 'Rob Report' of Remuera and be blown away... 8 mill+ for 500sqm land with house last month.
Dont bother unless you're seriously in that segment. Or you are a spy needing a hideaway
Gorgeous house, but that's simply insane.
Lowering Clearance rates aren't a surprise when one looks at the ANZ consumer confidence survey. People are getting a bit nervous all round, probably with good reason.
People are emotional creatures
Yes. Whatch what happens when the majority of mortgages on fixed rates come due next year. All of a sudden people arnt paying 2.something, but 4 or 5.something.
Talking to a mortgage broker today, she was saying banks are already tightening up even before the interest rate factor.
Not unexpected. The speculators will hold on for grim death to avoid tax on sale but that could get toxic very quickly if prices do in fact retreat as interest rates rise = less listings. Eventually those sipping champers stuck in a loop of "I'm so great's" about their paper gains will wake up to the fact that they are just a gains on paper. The real questions are who is going to bail out their debt balance if the speculators decide to sell. FHB'ers in most cases cannot get the required level of finance now, and long term investors know enough to wait a bit longer until the math of returns makes much more sense = less sales at today's prices. An on and on.
Its been a long time coming, they the popcorn moment looks to be just around the corner.
Unless Orr gets scared by Omicron and removes LVR restrictions effective tomorrow... Wouldn't even surprise me at this point.
The Orr administration has zero respect for the buying power of your salary or your savings.
All 30% off would do is take us back to 2019. Life wasn't too bad then Was it?
There's still room for upward valuation.
CWBW.....there always is ....until there is NOT ....did you know that people from overseas laugh at our property prices
“.did you know that people from overseas laugh at our property prices”
They laugh cause you can buy a stand along house on a section with great life style for such “reasonable” price. It is impossible to do so in many countries specially in the main cities.
We take things for granted here in NZ but there are many trying to move here…with cash.
Small Kev ......it's a great lifestyle if your under 12 and over 65 or absolutely totally "sports" focused all year round ......and for residential property investment the ROI is just crap and you are totally relying on capital gains ..... up until last year I was getting 15% gross returns in the USA ...... and yes, you will likely get your wish of people moving here to buy property for cash, especially as the NZD is tumbling now ......but they are going to find harder for those trips back to their homeland with covid, unless they have a private jet....what about for some of them, the high salaries needed to service a mortgage at these prices, when these roles just aren't here ....... anyway you are coming from your own "vested interest" perspective, as you obviously want things to stay "just as they are" ......sorry mate, the world has changed since covid .......I've moved on with my own home only and now in the Cryptocurrency space and earning way more than my salary .....so I wish you all the very best with those "capital gains" with inflation now increasing .....as the renters out there will not be able to afford the rents .......then this government will bring in "RTI" (rent to income) and start controlling rents .....the rest I can leave for your imagination .......what a clusterf**k this market is.....I'm just thankful that I am out of it ....and that is why I stick up for the "little guy" and the FHB's, as it now just reeks of absolute, pure greed .....while ruining that "great lifestyle" you mentioned.
Bravo crazy horse… it’s a pity the greedy don’t see themselves as greedy. I despair at how low we have sunk
Thanks tomjones_04 ......I thought I would of got a reply from Small Kev playing the DGM card, of which you can see be my post I am definitely not a "doom & gloomer" ....it's the greed that really gets me and the media et al "hype" of property in this country....there are just so many "vested interests" in the property game now and so many incomes are relying on it .....crazy for a small, export led economy that NZ is.
of course but can you find a chair when the music stops?
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