The number of properties being auctioned is down on a year ago but the number being sold is up

The number of properties being auctioned is down on a year ago but the number being sold is up

Residential auction activity increased steadily over September but remained below the levels of the same time last year. 

The steady increase in activity can be be seen in the number of auctions interest.co.nz monitored over the four week period from 2-29 September, with 141 property auctions monitored in the week one (2-8 September), 159 in week two (9-15 September), 175 in week three (16-22 September) and 206 in week four (23-29 September).

That gave a total of 681 auctioned properties monitored in the four weeks from 2-29 September, down 23% compared to the 888 auctioned properties monitored in the equivalent four week period (3-30 September) of last year.

However while the number of properties being auctioned was down on last year, the number of properties that sold at auction was higher.

Of the 681 auctions monitored over the four weeks to 29 September, sales were achieved on 373, giving an overall sales rate of 55%.

But over the four weeks to September 30 last year only 367 sales were recorded, giving an overall sales rate of 41%.

Prices appeared to be generally steady, with 59% of the sold properties selling for more than their rating valuations in September this year, compared to 58% in September last year.

There was also little difference between the figures for Auckland and the rest of the country, with the sales rate at 57% in Auckland compared to 55% nationally, and 55% of the Auckland properties that sold fetching more than their rating valuations.

Overall the figures suggest that demand is running at about the same level it was a year ago, but a downturn in both new listings and the total amount of stock on the market is reducing the choice of properties for buyers, pushing up competition slightly and resulting in a higher level of sales under the hammer.

Details of the individual properties and the outcomes at all of the auctions monitored by interest.co.nz are available on our Residential Auction Results page.

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Ie flat v 2018. Par for course

"flat....Par for course" That is an amazing result compared to the carnage you used to announce here up to a few weeks ago Mike. Going forward hows the market looking.

Apartment sales and central Auckland improving.
Waitakere City also doing well re FHB market . Rest of Auckland basically same sales level as 2017

Affordability is the key. :)

Nice to see keen fhb buying. This week the fully renovated 3brm property at 4/11 Patterson St Sandringham sold to youngish couple with baby on the way. Good location and cheaper than renting.

The key is "cheaper than renting" for first home buyers.

It does seem like the "silent spring" predicted by many here has failed to eventuate.

6 more houses sold in a month is hardly a booming market either.

Property seems to be neither going up nor going down. I guess this is how it should be if wage and consumer product price inflation is low and mortgage interest rates are low.

It is better for buyers to not have so much pressure as there was during the boom period of 2015-2017.

I am seeing quite a few sales in my area with the buyers ripping into renovations straight away. They didn't buy the properties for particularly low prices either.

low interest rates do not indicate flat prices. They indicate rising prices. If it were not for ultra-low rates the market would be falling.

Exactly right Laminar, and there's not much wiggle room left for falling interest rates but at least it will help to maintain prices below the million mark, the rest will gradually drop back down to reality.

Low interest rates have mitigated a property price correction. Probably couldn't have come at a better time.

Great to see Zachary return and share his wisdom......

I'd been thinking that with the change in market conditions now apparent, we'd likely hear from Zachary.

Welcome back, Zachary!

TTP

So you are acknowledging that the fundamentals of the New Zealand housing market are not as solid as others here are claiming.

Greg, what were the numbers for Auckland?

Following Auckland's flat market of three years, it's hardly surprising to see things start moving again.

Low interest rates and low unemployment are certainly playing a role - but the underlying demographic pressures remain highly pertinent.

Enjoy the weekend everyone - and would the DGM please remember that there's more to do than attend open homes.

TTP

Start moving again? It's still flat as a pancake in Auckland.

Yep only a handful a properties being sold at auction in Auckland, not all of them managing to sell above their 2017 RV. Some dramatically selling below CV even in very expensive neighborhoods. Take 85b Benson Road, Remuera for example. It's RV is $2,475,000 (July '17) yet it sold for only $2,005,000. And it was very well presented. Not surprising that the number of properties going to auction is down.

I am seeing a lot more “Deadline Offers” here in the Hawke’s Bay. They are a de facto auction but will not appear in any data relating to auctions.
In a “Deadline Offers”, as a vendor can accept an offer prior to the deadline, there is more pressure on the potential purchasers in terms of time and putting their “best offer” or “bid” in (not just a $1 more than that of the second highest bidder).
“Deadline Offers” will only be preferable when there is reasonably strong interest in the market. The number of auctions in itself is not necessarily a strong indicator of the state of the market.

Fewer properties for sale, increased clearance rate, more houses selling above CV, this all bodes well for vendors but not so much for buyers...

Ahh Buyers could always take advantage of the very low rates being offered these days. I see the Bank of China is offering a 2 year 3.15%.

Yvil, I think it is a great time for buyers to be buying.
Interest rates so low, Banks wanting and needing to lend if you can service the debt.
Why not be in if you find what you are looking for?

What happened to that clown Joe Wilkes who used to write an avalanche of posts using never ending data to "prove beyond any doubt"that NZ houses would crash in 2019 and were following OZ down into the abyss?

Retired Poppy also seems to be also lost in action.

Where's Eco Birdy these days, I remember her saying that the Auckland market bottomed out early last year and she was wrong. :)

My old mate Gordon, has gone to ground as well.
He only returns once in a while to say how great Christchurch is now.
Mike, the ex agent is around with his analytical expertise, so we are all ok!

Hi printer8,

Retired-Poppy vanished when the Reserve Bank cut the OCR by 0.5%.......

A shyster if ever there was.

TTP

With term deposit rates so low it's a struggle to survive, had to cut back on non-essentials such as internet.

What and do you really think that falling mortgages rates will help to sell those multi million dollar homes, I doubt it.

Well it depends if we're in overshoot of multi-million dollar homes. If we do have an oversupply, then no falling mortgage rates won't do a lot.

If we don't have an oversupply, then it's really just owners of multi-million dollar homes buying/selling from each other so low mortgage rates might entice owner occupiers to upgrade when they sell i.e. people continue to climb the ladder.

CJ009
Well, falling interest rates most certainly aren't going to hold back those buying million homes. In fact I would have thought that they would be pretty happy and a lot more keen and able.

Yes I've already mentioned that "Buyers could always take advantage of the very low rates being offered these days". What they can't afford though particularly FTB's are homes above the million mark. You have to keep in mind that most of the dodgy money that was pouring in to Auckland has gone. So prices at the top of the market will continue to largely stagnate.

Joe wilkes has been AWOL from YouTube too but has returned and is putting on a brave face. I would like to see him with the clown makeup and funny nose.

That's gold

Joe Wilkes had a grudge on his shoulder bigger than Texas ! He must of had a bad experience sometime that made him envious of others in the real estate world !

He must have gotten burnt in Ireland, so he's come to New Zealand to preach to the masses.

I see all the Land Agents are on this site today including The Boy. There is nothing to say really. The economy is going backwards. Auckland and Christchurch are correcting surely and steadily. Great time to be holding commercial property and large parcels of residential land. Interest rates will continue to drop along with the economy as it falters making commercial investment easier each time they cut the OCR.

Gordon, great to know you are still around and the minivan got you back safely.
Former agent Gordon, former!
Have got a commercial property and it returns 15% net on purchase price, so not too bad.
Yes interest rates are very low, so makes returns on all property great, whether it is commercial or residential.
Keep up the good work Gordon, must be nearly your tea time.

Houses Overpriced, Nic Johnson, Joe Wilkes, Retired Poppy and many other perma-bears all gone... tired of being constantly wrong

Independent-observer and swapacrate too

Indeed, the DGM are fast biting the dust.

TTP

LOL.. Sad REA's trying to look big! Well as many commenters have pointed out it's the falling mortgage rates that are stimulating sales in the mid price bracket allowing FTB's to get further in to the debt mire. Thing is mortgage rates can only fall so low, currently at 3.15% with your favorite bank of China (Yavil). ;) This means that we're going to be locked in to locked in to very low interest rates including savings rares for years to come. Perhaps you Real Estate Agents should drop your over bloated commission rates and do your bit for the real economy. :)

Talk to Mike Kirk, I think he's the only RE agent here

I think you'll find that Mike Kirk is the only good RE Agent here, the rest of you can continue squabbling among yourselves. :)

What do you mean "the rest of you"? Who else is a RE agent?

Yvil, Mike Kirk is not selling real estate.
He has a license but is not selling for anyone.
He is probably ex agent!

Also he's only had his licence for 1 year...

At the current sales volumes quite a few will be doing other work already.

Based on the properties I've tracked recently, I continue to believe the Auckland market has (unfortunately) strengthened in the last few months. Not just the low end, but the high end too. Interest rates are certainly a factor, but so too I think is the low NZD.

The NZD is an underrated factor, particularly at the high end. With net migration running at over 4000/month, we have a lot of new arrivals (or returning Kiwis) turning up with an extra few % of cash. For example 1 USD was worth about 1.45NZD in 1 Feb, while on 1 Sep it was 1.58NZD (+9%). Slightly cherry picked numbers, but the point stands.

Yayayyyyy! So excited that the market has picked up, and I can return to a more affordable housing market.... oh wait.... no its still wayyyyyy too expensive for me to return.... stay in Aussie where the wages are awesome, the lifestyle is affordable and I can buy a brand new house for less than $300 k!!!

If Perth is so amazing then why would you be considering coming back to NZ?
Truth is that Perth is not all that amazing unless you are earning the big money!
NZ will be great again once this COL is gone at the next election!

I think its called sarcasm.....

Average house prices in Auckland 1 million definitely sustainable and affordable, can easily go up maybe 2 million, NZers are loaded. Average Salary must be 120K so times 2 thats 240K. Easy to save for a deposit of 200K, anyone can do it just stop buying avocados and coffees. People who earn under that can live under bridges, they shouldn't have bought coffees and avocados.

NZ mass immigration policy of cheap labour will add to the problems we have, bring in the oldies a lot of room under those bridges for families of restaurant workers and petrol attendants. Maybe if they drive taxis they can sleep in cars, bonus.

Great point 'The Spam 2!!!' Actually since you are so knowledgeable, please exert your amazing insight of the property market, and tell me with the $50 savings per week in NZ, that I was making after all of the massive costs just to survive in NZ, how could I get the deposit of $90k as the mortgage broker advised?! Was thinking of a balaclava and a fake gun, but that's frowned upon, in some societies...