Winter is starting to bite into the number of homes being auctioned, with Barfoot & Thompson marketing 139 homes for sale by auction last week and achieving sales on 45 of them, giving an overall sales clearance rate of 32%.
The highest sales rate was at the Shortland St auction on 29 May where 10 properties were offered from a mix of suburbs ranging from St Heliers to Massey and sales were achieved on five, giving a 50% sales rate (see chart below).
At the Manukau auction where properties from throughout south and east Auckland were offered the sales rate was 31% and at the North Shore auction it was 38%.
But at the Pukekohe auction none of the 10 properties offered was sold and all were passed in for sale by negotiation.
Details of the individual properties offered and the prices achieved on those that sold are available on our Residential Auction Results page.
| Date | Venue | Sold | Not sold | Total | % Sold |
| 29 May | Shortland St, CBD. | 5 | 5 | 10 | 50% |
| 29 May | Manukau | 11 | 24 | 35 | 31% |
| 30 May | Mortgagee/High Court | 0 | 1 | 1 | 0 |
| 30 May | Whangarei | 0 | 1 | 1 | 0 |
| 30 May | Shortland St, CBD. | 13 | 24 | 37 | 35% |
| 30 May | Pukekohe | 0 | 10 | 10 | 0 |
| 31 May | North Shore | 10 | 16 | 26 | 38% |
| 31 May | Shortland St, CBD. | 5 | 9 | 14 | 36% |
| 31 May | On site | 0 | 1 | 1 | 0 |
| 1 June | Shortland St, CBD. | 1 | 3 | 4 | 25% |
| Total | All venues | 45 | 94 | 139 | 32% |
33 Comments
Now we're blaming Winter, it's nothing to do with tightening credit availability, oversupply of property and concerns across the Tasman with a collapse in full swing. It's winter, that's all... and next week if the results are also bad it's because we're nearer a full moon,,, week after, football world cup stopped people going to the Auctions....or are Barfoot Agents struggling to align expectations with reality?
look i'm just another herbivoure that grazes our lush lands and follows the flock....but I can't understand why vendors accept the AKL real estate industry's push to auction properties. Understandable in an up market but a flat to declining market with clearance ratios such as these it just seems we're being suckered in. Can anyone clarify if they've recently had the "go to auction" pitch from an RE?
How the news is potrayed. Manipulated.
Headline could also be :
68% house went unsold in current Auction.
( Or if concerned about winter which must have come as a surprise to expert though this event happens each year :)
68% house went unsold in current Auction : Is winter the only reason
Somebody might have to do the DGZ treatment to the passed in auctions, see how many are listed with asking prices now and how far above/below CV they are asking.
I just checked three, one doesn't have an asking price,
7/66 Larchwood, listed now at $907, CV is $940k.
63 Wellpark, asking $969k, CV $1.14m.
Don't have time to check the rest, darn work expecting me to do work things at work.
ouch
14 Mcilroy Ave, hillborough, asking $1,095k, CV 1,575k. 30% under CV, for 1247m2 section, surely thats a candidate for subdividing/developing?
Gave it a quick poke, rather fruitless exercise. ended up with 18 properties with asking prices that I could be confident of matching the correct CV with. Avoided inner city apartments, no-one gives a damn about those. Includes the three mentioned above
Combined CVs = 18.705 million
Combined asking prices = 17.864m giving average asking price of 96% of CV.
6 asking above CV, 12 asking below CV.
Asking prices ranged from 134% of CV (4 Eversleigh, Belmont, CV 1.675, Asking 2.25m) down to 70% of CV (14 McIlroy)
Cheapest was 1/185 swanson road, brick and tile 2 beddy unit, crosslease, asking $595k (100k above cv)
Most expensive asking was Eversleigh.
Highest CV 1/41 Seaview ave Northcote, CV $2.25m, asking $1.795m( $455k below CV), Crosslease.
Other interesting tidbits:
16 Memorial Park Lane, Hobsonville Village, new build, Mike Greer homes asking $895k, previous buyer failed to settle.
122 Albany Heights road, CV $1.925m, by negotiation, but ad states selling below CV.
Make of that what you will
We had to level out or settle down for a bit, didn't we? The problem with a two-stroke economy is that it tends to be all or nothing. Perhaps we could try working harder & smarter to make money in future. NZ banks have over a quarter of their loan books in residential houses. In USA it's less than 10%. In the UK it's 17%. And if there happens to be any problems on the farm as well, blimey, we could be in for another 7.1. The last one cost us nearly $20B.
Auction clearance rates in Auckland have risen a bit over the last month or so - as confirmed by the most recent reports on this website........
Of course, this might not be sustained but given the onset of winter it is of undoubted significance - and certainly shouldn't be ignored.
TTP
Hi tothepoint,
You say
"Auction clearance rates in Auckland have risen a bit over the last month or so - as confirmed by the most recent reports on this website........"
Well this is the most recent of said articles and it shows a clearance rate of 32%. So you think this is a significant rise from what exactly?
MTP
Hi Mrs The Point,
The auction clearance rates reported here over the last 3 weeks are up - including one that hit 50 per cent.
This result is hardly surprising: sales volumes (overall) in Auckland also rose through the month of May.
Time you stopped brooding - and got a handle on what's actually happening.
TTP
Hi custard,
I don't know if anyone has suggested "ignoring" auction clearance results. They still have some (albeit diminished) relevance.
Clearly the market has changed and I'm on record as saying that, "paying too much attention to auction clearance would be unwise".
For example, there are now relatively more sales "by negotiation" notably among higher priced properties - and these need to be considered in any rigorous analysis of what's happening.
TTP
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.