The auction rooms at Auckland's largest real estate agency made a flying start to 2022, with interest.co.nz monitoring 60 properties that were offered at auction by Barfoot & Thompson over the five days from 17-21 January.
However results for the start of the year were patchy, with 25 of the 60 properties offered selling under the hammer and the remaining 35 being passed in, giving an overall sales rate of 42%.
Probably one of the biggest surprises of last week's results was that none of the eight central Auckland properties offered was sold under the hammer.
Traditionally Auckland's central suburbs have achieved some of the highest sales rates.
However properties in Manukau and the North Shore both had sales rate above 50%, but not by much (the table below shows the sales results by district).
However January may not be the best indicator of where the market is headed because it is usually just sparking back into life after the Christmas/New Year break.
The February/March period is usually the busiest time of year for the residential property market, so auction results over the next few weeks should provide a better indication of how the market may perform as the year progresses.
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44 Comments
This is a good sign.
There's still room for upward valuation.
Be quick!
You'd comment that no matter what the article says. Did you read it?
Yes I did.
Did you read it and not understand?
So .... asking prices up, listing numbers up, interest rates up, loan availability down, and sales completed down.
That last paragraph - should it read "auction results over the next few weeks, or months" rather than years?
When I take a look through the new build offerings from Mike Greed Dog Kennels, I am thrilled to see that Massey has now "achieved" $13,000 per square meter ($1200 per square foot) for entry level living space.
https://www.mikegreerhomes.co.nz/homes-for-sale/search/
Entry level Massey has knocked London off its perch and has Manhatten in it's sights.
There's still room for upward valuation. 🤡🤡🤡
Let's do this!
$4k to build, $4k for the land, $5k profit (per square meter).
$865,000 for 63 square metres in Massey. Wow.
Criminal negligence in successive governments to have let things get to this point.
A lot of people are still on holiday or just returned. That said the entry point of debt is now far below the sellers greed. It will take at least six months for speculators to get the message, and may require loan rollovers and interest only renewals to be declined. Agents will now suffer the GFC like "mexican standoff" where sellers stay greedy, and buys just cant get there. That means agents don't get paid, and more young relocate their taxpaying future to Aussie.
Popcorn - keep stacking the vulture fund...
Hi Averageman,
Those who waste their money on non-essentials like popcorn can hardly expect to get into a home of their own.
TTP
Spot the Smashed Avocado Warrior in the wild.
https://thespinoff.co.nz/society/20-01-2022/save-for-a-house-deposit-wi…
The market has peaked - that no longer deserves discussion.
The nature of the correction is the only subject worth speculating on and this article offers no new data that assists with that. Move on.... nothing to see.
A lot of bank managers and mortgage brokers are still on holiday too or seem to have a massive backlog of applications to work through. We have submitted details for a loan application (ANZ) over a week ago and haven't even had the initial chat yet even though it was apparently picked up on Saturday.
yeah you might be waiting awhile, mine took about 3 1/2 weeks before it finally got sorted back in early Decemeber. Lots of going back and fourth with questions
Interesting looking at the 8 Auckland Central properties - a mix of dumps, apartments and a couple of new builds on postage stamp sections. Not your usual Central fare. Quality properties in City fringe suburbs on 500 sqm + will always be desirable.
I went to an open home over the weekend, property probably in the 1.2-1.3 mil range - West Auckland. I couldn't believe how busy it was, so many FHBs with young children etc. I thought no one could get finance or are these all window shoppers?
could be a mixture, you would like to hope that before you start house hunting you have the finance sorted first. Until anyone applies for a personal loan/mortgage under these new changes, they have no idea how much these new changes are affecting their capacity and are going to be getting a huge wake up call.
Don't under-estimate how much Kiwis and the English love property!
It's in their blood through generations of upbringing since the Medieval Ages where the British lords and barons owned all the land and the serfs and slaves poor just worked the land and paid rents for the privilege of having somewhere to live.
Things never change and let's be honest, no one wants to be poor or a tenant.
Market is still strong it seems as vendors confidence is still high :
https://www.stuff.co.nz/life-style/homed/real-estate/127586614/trade-me…
Also success rate of 50% or more is not that bad though down from earlier as long as it does not fall below 40% as it is at this time when expectation changes.
Verdict : Boom intact
Stock Market : Has it bottomed out today or more pain still to come. Think, pain is more in anticipation of waiting for fed meeting than the actual meeting, when it happens, may get a bounce on that day.
Trademe property listings 24'500+
Looks like it will hit 25'000+ by the end of the week.
Abandon ship !
"Abandon ship !"
And live to regret it......
TTP
The CCCFA is definitely slowing buyers' ability to obtain finance
The only will that will get most younger folks in a home is the death of a rich relative.
That's funny !
That's shocking
The mortgage broker could get in trouble for suggesting the applicants lie to the bank like that. I think there are laws he's breaking.
There might be a good reason banks are so reluctant to lend at the moment. If a downturn is on the books, they want to make sure applicants take on as much risk as possible to prevent it biting them further down the line, and also to protect their profits. This is why banks are sticking so rigidly to the laws.
Even if not, if you lie to the bank to get a loan, you've got no recourse. The banks hands are clean, legally. No wonder she felt terrible doing it.
Where there's a will there's a relative
Party was over in November folks
Omicron will fear squash Auckland market in prime time you refer to.
Prices will start falling faster from April onwards.
Take a look at stock markets if you want an idea of what is going on in heads of richest 30% of pop.
Fear rules
Wasn't the mania over like a year ago Mike?
Contrarian forecasters (like Hugh Hendry etc) and myself , all have egg on our faces due to printing and massive fiscal debt.
But now that party is over and rates can no longer be cut.
No more sweeties for the insulin diabetic.
I think it could be a longer drawn out sales period instead of the normal summer selling season. People are taking longer to get finance so it could take a few more weeks for the vendor to sell unless they really needed to sell and accept whats in front of them
Mike made a great point.
As we roll through the "peak" summer "selling season", old mate Omicron is going to be ripping through the population. Much of the population is going to be too terrified to set foot beyond their front door.
Omicron is going to be ripping through the population. Much of the population is going to be too terrified
Be scared sheeple be "terrified" the great villain Omicron is going to be "ripping through the population" image of the reaper to follow
The grim reaper will only harvest ten or fifteen a day going by Australia's numbers.
That's precisely my point, and probably less than that
that's only the ones who believe in the PM and everything Jacinda says.
Those with boosters maybe more willing to get out and about. But many will go into a self imposed lockdown as has occurred overseas. Imo it should be far easier and more cost effective to keep it out and stamp it out than let it rip. Hong Kong and China don't want to live with it.
Not that I believe prices are dropping but if they do its all gravy. Pick up another few bargains along the way and in 3/4 years smile at the cap gains
You must really love low yield investing. Catching a falling knife covered in gravy
If you think short term as you clearly do then yea panic and run. Play the long game and be set up to ride the waves then yea ill catch that knife today.
New houses will keep some prices high due to inflation and the increasing cost of materials and lack of good builders
Just remember under existing law if you are buying and selling for capital gains then tax is applicable regardless of the BLT. Make sure you're not evading tax.
Tax is tax, happy to pay it. Still plenty of money to make.
DGM housing savant, Mike Kirk, has returned!!! That must mean two negative articles in a row. How many % will he be off this time around? By my calculations he is starting at a position of -70%.
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