The sales rate was above 50% for the second week in a row at Barfoot & Thompson's auctions last week, although the number of properties being auctioned remains low.
Barfoots marketed 80 residential properties for sale by auction in the week of 12-18 August and achieved sales on 43 of them, giving an overall sales rate of 54%, almost unchanged from the 55% sales rate achieved the previous week when just 65 properties were marketed for auction.
Of the 43 properties that sold last week, 35 sold under the hammer, five were sold prior to their auction and three were in negotiations sold immediately after their auctions.
The higher level of sales evident over the last couple of weeks appears to be reasonably uniform, with the sales rate dipping below 50% at just three of the auctions, and they were all minor affairs with three or less properties on offer.
At the big auctions where at least 10 properties were offered the sales rates ranged from 50% at the Manukau auction to 63% at the North Shore auction.
The higher sales rates of the last two weeks have coincided with moves by the Reserve Bank to cut interest rates, although that may be coincidence.
And while it's too early to say that the latest results indicate the start of the usual spring lift in sales, the market is certainly starting to look a bit more interesting.
The table below summarises the full results achieved at Barfoot's auctions last week, and details of the individual properties offered are available on our Residential Auction Results page.
The comment stream on this story is now closed.
| Barfoot & Thompson Auction Results 12-18 August 2019 | |||||||||
| Date | Venue | Sold | Sold Post | Sold Prior | Not Sold | Postponed | Withdrawn | Total | % Sold |
| 12-18 August | On-site | 2 | 1 | 2 | 1 | 6 | 50% | ||
| 13 August | Manukau | 7 | 2 | 8 | 1 | 18 | 50% | ||
| 13 August | Shortland St | 1 | 1 | 2 | 4 | 50% | |||
| 14 August | Mortgagee/Court | 2 | 1 | 3 | 67% | ||||
| 14 August | Shortland St | 10 | 1 | 9 | 20 | 55% | |||
| 14 August | Pukekohe | 1 | 2 | 3 | 33% | ||||
| 15 August | North Shore | 8 | 2 | 5 | 1 | 16 | 63% | ||
| 15 August | Kerikeri | 1 | 1 | 0 | |||||
| 15 August | Shortland St | 3 | 1 | 2 | 6 | 67% | |||
| 16 August | Shortland St | 1 | 1 | 1 | 3 | 33% | |||
| Total | All venues | 35 | 3 | 5 | 32 | 1 | 4 | 80 | 54% |
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67 Comments
shouldnt it read, a few houses are still going to auction.
the numbers are so low its not even worth reporting now
Maybe.. Greg, do you have the volume of properties put up at the Barfoots Auction for the corresponding week in 2018 and 2017?
I think there is also an element of the older very average places now no longer going to auction.
The change was sudden rather than gradual so its unlikely a progressive change causing it.
2nd dead cat bounce maybe?
CoreLogic lifted their estimation on my home to 97% of CV as at 18/8/19. The feline looks like it's still alive.
A friend of ours sold at auction recently, under hammer and for good price so they are happy with the auction process.
Hi HeavyG,
Forgive me - but I don't see any dead cat......
I see a cat that's waking up and having a good old stretch after a longish nap.
TTP
I think HeavyG is joking. A dead cat bounce after a 3% decline is a very funny visual that creates in my head the image of it bouncing higher than the point from which it fell. You can imagine property prices been up 10% and some perma bears would be saying 'dead cat bounce' :-) Comic genius imo. He made a similar joke a day or two ago that I also liked.
Sorry Glitzy - but the less-appealing, less-saleable properties diminished from the auction rooms LONG AGO; not just over the past few weeks.......
You'll have to search for better excuses, my friend.
TTP
Exactly. Those that go to auction will be ones that the agent is very confident of selling at auction. So that will typically push the sales rates higher.
The level of denial is incredible, auction numbers are up a bit, you don't need to come up with crazy reasons because it's not what you expect
"The level of denial is incredible"
The irony.
Auction numbers are up a bit but sold prices are...... Pick one: up, down, flat, side way, sky high, down the loo, shxt.
No denial at all. I said the other day that things look a little more buoyant.
But, as others have said above, it's a bit hard to make big judgements on such a low number.
Auctions are a minor part of the overall market, after all.
I'm reserving judgement.
Agents must be eating into their cash reserves, literally.
Some missing perspective.
Same week last year:
95 auctions with 37 sales (vs 80 auctions and 43 sales this year)
https://www.interest.co.nz/property/95419/auction-numbers-were-low-sale…
Some quotes from that piece last year:
"Limited winter fare"
"Auction numbers were low"
"Properties offered for sale remained at their winter lows"
This year far fewer auctions even compared to this time last year.
[Edited: 2019 sales increased from 35 to 43 based on info below]
So much as suspected, slightly higher clearance rate on lower volumes. Certainly not a market taking off as the spruikers will no doubt try to imply.
Hi Pragmatist,
The market may not be "taking off" but neither is it keeling over and dying - like the DGM have been fantasising about for the last 3 years or so......
TTP
Quite right.
BTW, how do you define DGM? People who predict a crash?
That would mean I'm not a DGM right, predicting a drop from peak of 5-10% (a moderate correction, not a crash)
Hi Fritz,
The acronym "DGM" (Doom and Gloom Merchant) is a descriptor that's in such common usage here, I think most contributors here will understand what it means - and how/why/when it is appropriately used......
Those who don't can consult a dictionary/thesaurus.
TTP
So it's people who predict s crash, right?
Have you ever thought the current level of crazy prices is 'doom and gloom' for the increasing number of people who can't get on the housing ladder?
Hi Fritz,
Indeed I have.......
I happen to be one of them - but I don’t come here wearing it on my sleeve.
I get on with life.
TTP
Did last year's sales of 37 include those sold prior and post auction?
That's what I'm not sure about.
I made that point last week when I pulled out pcp data.
Would be much appreciated if interest.co.nz clarified what the previous definition of 'sold' was.
I suspect, but not sure, that sold post & prior were excluded from data?
Yep, it does. The barfoots website shows 8 sold on the day of 15/8/2018,
https://www.barfoot.co.nz/Auction-Search?l=34%20Shortland%20St&s=15/08/…
https://www.barfoot.co.nz/Auction-Search?l=34%20Shortland%20St&s=15/08/…
but the results list 10 sales. So 2 others were either post or prior.
Thanks Pragmatist,
so same week last year:
95 auctions with 37 sales (vs 80 auctions and 43 sales this year)
Nice one
In that case the comparison is:
2019: 43 sales out of 80 processes (54%)
2018: 37 sales out of 95 processes (39%)
So a few more sales this year, but far lower volume.
With higher sales rate in 2019. It would be interesting to see the numbers sold above and below RV in the two years.
Yeah that's always the rub.
At what price.
I find the issue is looking through properties that have been recently renovated - takes time to go through and strike them out as invalid data points.
In most cases they stick out like a sore thumb anyway - then you can usually still find the listing online to confirm.
Data can be presented to suit individual interest.
An individual data point (1 week of sales volume) is pretty meaningless.
I'm just providing addiitonal data for perspective - people can draw their own conclusions and bring their own biases to its interpretation.
High alittle,
The DGM certainly have demonstrated that.
TTP
Yesterday two B&T real estate agents knocked on our door, they asked my partner if we or our neighbours are looking to buy or sell, and handed us this: https://imgur.com/8ieCTmq
Then they told us it's a great time to buy because prices have bottomed out. Note how that is a complete contradiction of what the quote on the pamphlet suggests.
They are indeed getting desperate.
There definitely has been a lot more activity at the open homes over the last couple of weekends. Even for stock that has been sitting around for some time.
Are you a real estate agent?
Ha, no, just keeping an eye on the market for the right time/place/price.
Up until the last two weekends I was lucky to see one other group at the open homes - now suddenly several. Maybe preparing for the spring rush by heading out to see all the current stock? Who knows. I guess we'll see if they sell or not.
Let the spring party begin ! ....happy daze are here again !
We've got it all with Awklund real estate ...unlimited demand, super low interest rates, lowest unemployment ever !!
Along with world class building standards, the envy of so many other cities around the world ....great insulation is one of our specialties, along with weather tight quality builds that can't be beaten !
C'mon y'all know that property doubles in the city of "sales" every 10 years !
You are onto a financial winner, along with securing a home of your own or a fantastic investment, in the worlds greatest city, choc full of so many amenities and exciting things to do !
What are y'all waiting for .....fill yer boots ! ....the only way is UP !
Value added there...
Great news HeavyG ! ....so what's your strategy "going forward" ?
I have sold one of my overseas property, to leverage back into this wonderful Auckland market, as per my very valid reasons above.
People always forget what a fantastic city Auckland is ! ...while this is proved by so many good folks from overseas, who would just love to live here and enjoy the fine ambiance this exciting city has to offer.
I feel so silly now for investing overseas, when the "pot of gold" was sitting right under my nose !
However, I have now learnt from actual experience, that this Auckland market just can't be beaten ....you, my good man (and TTP) have been "on point" all the way along !
Exciting times .... Happy "daze" are indeed here again !
Great news CH!
Either you can't read sarcasm, or I can't read sarcasm. Maybe both of us.
I'm just feeding the troll, 3 words from me gets a large amount of drivel from CH. Keeps him happy.
Is that drivel or dribble?
Probably a bit of both coming from CH's mouth. He's just living up to his pseudonym.
Auckland "pot of gold" is that the soft (slightly warm) variety?
"i'd buy that for a dollar!"
Hi Crazy Horse,
If you don't like/trust Auckland buildings, then buy well-located land.......... You'll do even better. (-:
TTP
Sales in Auckland, pcm are LOWER than in period 2008-11.
That is for last 7m.
Apartment sales are same pcm as they were in 2003-06.
AND bear in mind, large increase in stock in last decade.
So, lot fewer being sold, out of larger stock.
GREAT performance.
And given the fact that NZD has devaluated I doubt foreign investors, who had to convert their USD to buy, made any tangible profit on their investment. Great performance for everybody :)
All doom and gloom! Mike Kirk real estate agent what's your advice to homeowners and investors on how to survive as well as prosper in a falling property market?
Plainly you do not favour facts. Agents by the way are interested in sales and buyers not equity in a house or what investors can profit from
Pardon moi monsieur. I thought that you were telling us that the market is falling as well as sales turnover. So actually prices are not falling. Merci.
In a falling property market it is best to keep the cost of housing to 25% of net monthly income. While I normally recommend 33% and interest.co.nz considers 40% affordable those figure are too high in a falling market, especially if you are buying.
If you have unaffordable debt you need to get out immediately. If you have any money left over buy and old van and convert it to a camper. It's not homelessness if you are freedom camping instead.
https://www.youtube.com/watch?v=wksm1xI1Ms0
For decades, more and more has been rung out of wages....is there more in there?...we shall soon see...squeak!
Just received a TradeMe property price email update too:
"Auckland Property Prices Tumble"
Hey Rick that maybe the case in Auckland but the regions don't seem to be on that mailing list and continue to increase. My question is WHEN will the entire NZ property market go into reverse gear ?
Hey Carlos, just for a reference ... London peaked in 2014. It took until 2018 before the South East caught the chill. I think the reason being, like Auckland price declines have been slow and steady rather than a collapse.
I'd assume NZ would follow a similar pattern as liquidity drains away.
Yep, regions are still on the upward swing. This is what TradeMe says about Auckland:
Auckland property prices continued to tumble in July after the average asking price fell 2.2% on last year to $875,450, the lowest average asking price since September 2016, according to the latest Trade Me Property Price Index.
So maybe lower asking prices (reserves) have helped an extra 8 houses sell over this time last year.
Well what about aus property on the up again. You used to say "where aus goes nz will follow" but have been strangely silent of late
I mean, it follows Australia with a lag. So we should see it fall 17% or so from peak before going up, right?
No not right ggp
Which part is wrong?
That does not look like something I would write. You know I'd never have such poor capitalisation in my sentences.
I'd also dispute the claim that I've been silent of late.
Australia looks interesting: https://www.businessinsider.com.au/this-is-exactly-how-much-house-price…
Sydney
It’s no secret Sydney has been on the decline since booming up until mid-2017. Over the past 12 months, house prices shrunk by 9.1% while units are down 7.1%.The good news for owners and investors is the pace of decline appears to be slowing. Houses and units both fell by a relatively modest 0.4% this quarter, indicating they may be nearing the bottom.
Since their peak two years ago, house prices have fallen by 11% back to early 2016 levels, while units have dropped by 14%, bringing prices back to mid-2015.
“This turnaround has been triggered by the Reserve Bank cutting interest rates twice, an election result meaning there will be no changes to negative gearing rules, and the banking regulator changing a key lending rule that will enable people to borrow more,” Domain concluded.
So if research suggesting Australian and NZ markets are connected (albeit weakly) then it wouldn't necessarily look like anything particular to celebrate as of yet.
"You know I'd never have such poor capitalisation in my sentences"
Nice one Rick
Ozzy banks are likely to be at high risk of banking collapses in the next few years due to that last statement "Banking regulator changing a key lending rule that will enable people to borrow more,” Basically they're entering in to "Soft Lending" that's what let to the 2008 GFC.
They allowed millions of home owners to go on to Interest Only mortgages so they could compete with Foreign Buyers when their housing markets were booming. Now the Ozzy banks are having to shift customers on the repayment mortgages "principle and interest" since there not so many Foreign Buyers due to China's crack down on capital flight and the Ozzy housing market is in a bit of a mess.
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