Sales were achieved on 40% of the properties auctioned between July 14 and July 20

..... and this is only half the story as the houses going to auction nowadays are hand selected by the agencies as the most desirable. If the same selection of houses were going to auction that were going two years ago the sales achieved would not even reach 20%. The tipping point has been reached. I am sure glad I don't have a portfolio!

Bottom of the year. Last winter also in Auckland were unseasonal sales jump. They were front running OBB. Hence sales drop month on month will be worse til October. Except in Sept which last year was abysmal making it hard to plumb this year!

One needs to ask why numbers continue to slide.
Clearly we have shifted from a sellers market to a buyers market and this compounded by the winter season.
In a sellers market, auction is clearly the best option in the hope that competing buyers will push the price beyond possible expectations.
In a buyers market, auctions are clearly a less preferable sales method as there is considerable expense in this form of marketing with a lack of competition resulting in no sale or a price less than expectation and setting a lower benchmark for any further negotiation. It is generally going to be only sellers either under pressure to sell with a relatively unique property, or those under a time pressure to do so.
Personally, I aren't reading too much into falling auction numbers. After a near decade of a buoyant market, I see it as having returned to a pre-GFC state with current levels of sales, days to sell etc including seasonal fluctuations being fairly consistent with that.
The best indicator of the future of the market will be the spring period. At the moment the market is holding up fairly well as could be expected for the winter season and I expect the summer spring to be a little more active.
I am not a drowning man clutching at straws, rather one who sees the market - especially in Auckland - as finally returning to a normality two to three years after the market peak. I don't see any evidence of a serious correction, but rather for the next few years it being a flattish market with some minor falls or rises. Here I include Auckland as there are currently continuing drivers there - historically high levels of immigration, falling interest rates, a housing shortage, and high levels of employment. However, either a sudden change (which seems unlikely) in any of these factors, or as is normal, an event such as a signifcant downturn in the local economy or some external event would change the situation. While the outlook is for a global economic slow down, this would have to be servere as I think that the local economy is able to withstand the full effects of much of the slowdown. In comparison, Australia with its dependency of raw materials such as iron ore would be more seriously affected.

Sell is achieved only when the vendor as they say " Is ready to meet the market".

A free standing - 4 bedroom / 858 sqmt house listed in sunnyhill was sold within a week. Has the market changed ?

https://www.oneroof.co.nz/estimate/11-trust-place-sunnyhills-auckland-m…

Someone will argue that the market has changed as the house was sold within a week of its listing but the reality is that the vendor was a serious seller with realistic expectation and took the best offer of Low to Mid 900. CV of $1075000 and even if it went for $950000 is a fall and though this sell will not be highlighted by RE Agent like, earlier they use to do when a house worth $950000 use to go for $1.2 Million or 1.1Million as will be highlighted to market/ lift the price of other properties in that street/area and were succesfull also.

Similarly now it will be the other way round and this is not one off but many similar houses.

And am taking about good area with good school zone and is in demand by Asian population (if I use the true Ch.. word, may be termed as racist). Will not be surprised if the house has still been purchased by one of them.

Domino effect is inevetiable and also housing market runs on sentiments supported by speculators/money laundering and with Foreign Buyer Ban and money Laundering Act - very hard in near future for the market to jump up. Besides ecenomy cycle will also be in play but luckily the interest rates are very low which is slightly supporting the market as a result speed of the fall may be slow but unavoidable.

In the first round, Auckland house price of million dollar Plus house have definitely fallen by 10% to 15% and may be will have another round of similar fall ( After stabilizing for a while and in this stage, the units/low value houses start to fall, which has started - Good 3 Bedroom Unit with internal garage in halfmoon bay area, having a CV of High 800s which ideally would have fetch Early to mid 800s is asking High 700s and may go for near mid 700s) .

Glide slope is keeping some momentum but engines are off. How long relative altitude will be maintained is anyones guess. Banks are about to have to have more of their money on the line. I wonder which Bank, market share be damned, will choose to eject its higher risk customers first. Picking the first Bank to eject its wobbly specuvestors will be in a better position than its competitors as the rest play catchup, just like Margin Call.

What will be the event that shows how naked our debt emperors are? Hard Brexit, Douche Bank collapse, Aussie bank equity requirement, or Debt to income rule for borrowers as requested by the RBNZ.

Reckon another vote for Labour is required just to see financial sanity arrive.