Big jump in auction activity at Barfoot & Thompson

Property

Barfoot & Thompson's auction rooms getting busier - sales rate hovers around 50%

26th Nov 19, 9:34am by Greg Ninness

There was a jump in activity at Barfoot & Thompson's auction rooms last week (18-24 November) with the agency handling 199 auction properties compared to 144 the previous week.

There was also a corresponding lift in sales with sales achieved on 98 properties, giving an overall sales rate of 49% compared to 46% the previous week.

The most successful auction of the week was at Barfoot's Shortland Street auction rooms on November 22 where 15 properties from Auckland's western suburbs, including Te Atatu, Henderson, Massey, and Glen Eden were offered and 11 were sold, giving a sales rate of 73%.

The Shortland Street auctions on November 20 and 21, which mainly featured properties from central Auckland suburbs, had sales rates of 57% and 56% respectively, while the sales rate was 45% at the big Manukau auction and 44% on the North Shore.

See the table below for the results from all of Barfoot & Thompson's auctions last week.

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 18-24 November 2019
Date	Venue	Sold	Sold Prior	Sold Post	Not Sold	Postponed	Withdrawn	Total	% Sold
18-24 Nov	On-site	4	1		4		2	11	45%
19 Nov	Manukau	19	1		22		2	44	45%
19 Nov	Shortland St	6			6			12	50%
20 Nov	Mortgagee/Court	1					3	4	25%
20 Nov	Shortland St	20	2		13	1	3	39	56%
20 Nov	Pukekohe	4	2		8			14	43%
21 Nov	North Shore	16	3		21	1	2	43	44%
21 Nov	Kerikeri				3			3	0
21 Nov	Shortland St	7	1		6			14	57%
22 Nov	Shortland St	11			3		1	15	73%
Total	All venues	88	10		86	2	13	199	49%

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114 Comments

by Housingisoverpriced | 26th Nov 19, 9:57am 1574715421

Does this mean we will see more ads on TV with couples clinking their glasses in celebration of paying 50% more for a house compounding at the prevailing interest rate over 30 years?

by Yvil | 26th Nov 19, 10:36am 1574717800

They will clink some more glasses after said 30 years when they own a mortgage free house vs the renter who owns… nothing at all

by Pragmatist | 26th Nov 19, 10:40am 1574718029

Yeah, because those are the only two options. Its impossible for the renter to invest in anything other than houses... ffs. refer to Rastus's comment below.

by Due Diligence | 26th Nov 19, 11:16am 1574720167

Margin lending would be the only realistic way to compete with housing as an investment for most people. And most people, particularly DGMs and permabears, are too scared to do this.

by cmat | 26th Nov 19, 11:32am 1574721162

Leverage works both ways Einstein... even on (gasp) real estate.

by Due Diligence | 26th Nov 19, 11:59am 1574722781

What exactly do you mean?

by Mrs The Point | 26th Nov 19, 12:35pm 1574724943

Hahahaha, I think that says it all.

by Due Diligence | 26th Nov 19, 1:45pm 1574729120

Leverage (as in the borrowing of money) applies to mortgages as well as a margin loans. This is just stating the obvious. I don't understand the point they are trying to make by stating this fact, so what am I missing?

by Laminar | 26th Nov 19, 2:47pm 1574732838

He means it magnifies gains *and* losses.

by Due Diligence | 26th Nov 19, 4:54pm 1574740450

I didn’t say it was without risk. Risk and reward go together. What point of mine is he disputing? If that is what he meant I completely agree.

by CN | 26th Nov 19, 3:31pm 1574735508

"Risk and reward go together."

There is a phrase used by some investors - "return free risk". There are some assets in the world that currently give buyers that opportunity.

by Laminar | 26th Nov 19, 5:25pm 1574742337

Gimmie some of that sweet sweet risk, free of any pesky return :-)

by cmat | 26th Nov 19, 5:56pm 1574744210

In Europe you can even pay a pretty penny for some nice risk.

by CN | 26th Nov 19, 2:38pm 1574732334

Yes, it says it all. Some people don't know what they don't know.

by Sluggy | 26th Nov 19, 11:36am 1574721370

It really isnt, I started a business instead of buying a house 9 years ago and currently still rent. Best decision I ever made.

by Due Diligence | 26th Nov 19, 12:06pm 1574723180

Very good. But as an investment I don't think starting a business is a realistic option for most people. Most people will be looking for something closer to a passive investment for retirement.

by Sluggy | 27th Nov 19, 7:58am 1574794724

Probably not, but does the average Joe really understand the risk in the property market or any other market ? There is a lot of blind faith in the uncles brother said it was a sure thing. Then a lot of crying and pointing and blaming if/when it does go south.

by J.C. | 26th Nov 19, 12:05pm 1574723109

Margin lending would be the only realistic way to compete with housing as an investment for most people. And most people, particularly DGMs and permabears, are too scared to do this.

Yes. And they will have to punt on cryptocurrencies looking for that 1000x bagger. There will also be CFDs on gold and leveeraging into junior gold miners.

by cmat | 26th Nov 19, 1:53pm 1574729591

With all this great chat I only hope for one thing in life...

That, in-exceedingly-unlikely-never-*ever*-to-occur-circumstances, that the Government never, *ever*, bails out geniuses who find themselves staring down the barrel of leveraged losses.

Not one single cent.

by Due Diligence | 26th Nov 19, 2:05pm 1574730357

That is the one thing you hope for in life? Your dreams/aspirations are very underwhelming...

by cmat | 26th Nov 19, 2:57pm 1574733469

Now that I'm too old to resurrect my athletic career I have taken to schadenfreude as a hobby.... but only for those who are truly deserving.

by Due Diligence | 26th Nov 19, 3:31pm 1574735483

I.e. put out to pasture, hoping for the misfortune others. Misfortune that largely isn't eventuating when it comes to property investors and shareholders.

by cmat | 26th Nov 19, 3:38pm 1574735924

Property shareholders?

Shareholders in what?

by Due Diligence | 26th Nov 19, 3:50pm 1574736655

I was referring to equities on the stock market. On balance, stock markets doing well. Thank you for seeking clarification.

by cmat | 26th Nov 19, 4:05pm 1574737555

You seem to be mistaken.
I've got no issue with investing in markets.
No issue whatsoever.

Go get some good advice and go for your life.
You see... to invest in capital and debt markets you can only get advice from a qualified and (heavily) regulated advisor and no one is going to entice kids and unsophisticated 'investors' (I use the term loosely in this context) into highly leveraged and highly concentrated positions.

Stocks and bonds are (typically, for most retail investors) highly liquid and the market pays far more attention to fundamental value (i.e. risk, future cash flows).

Can you spot the difference?

by Due Diligence | 26th Nov 19, 4:51pm 1574740317

So you’re not a girl’s blouse opposed to well-informed margin lending investment in the stock market?

by cmat | 26th Nov 19, 5:38pm 1574743114

Nope, I've played in CFDs.
And I'm a big proponent of "well-informed" trading.
I was making the point that leverage swings both ways - it magnifies returns and losses.

You can't sing the praises of leveraged returns and not acknowledge that fact.

CFDs, like property, are the wild west from a regulation perspective - you can entice any unsophisticated mug into speculating on 1% capital.
No guaranteed stop-losses in property though.

And I wouldn't call anyone who chooses not to play in leveraged products a "blouse" either - people have different risk appetites, that's human nature, just like behavioural biases (which you could write a book on from these comments alone).

by Due Diligence | 26th Nov 19, 5:24pm 1574742278

“You can't sing the praises of leveraged returns and not acknowledge that fact“ Where did I deny that fact? Of course there is commensurate risk. Since you above referred to me as ”Einstein”, I’ll respond in kind and suggest that you are exhibiting signs of senility and need to pay more attention before commenting. Glue factory is calling.

by cmat | 26th Nov 19, 5:45pm 1574743501

"Margin lending would be the only realistic way to compete with housing"

The term 'competing' only implicitly acknowledges returns.
More accurately: "Margin lending would be the only realistic way to have a similar asset *exposure* as housing"
You can equally get 'burnt' by both products - language that implies a completely different outcome.

I'm only 36, so currently in stud.

by Due Diligence | 26th Nov 19, 6:07pm 1574744868

The term “competing” in no way implies that there is no risk of loss. Senility of the mind at 36 is very sad - your attitude to risk is closer to that of a granny, not a stud.

by cmat | 26th Nov 19, 6:39pm 1574746751

Perhaps I just spent too long studying & understanding it... it does form a big part of the CFA curriculum.

by Due Diligence | 26th Nov 19, 8:40pm 1574754058

I’ve spent time actually doing it. Since you’re keen to arbitrarily brag, I have multiple investment properties and have had a reasonably successful crack at margin investing. As an aside, my degree is equally as irrelevant as yours.

by cmat | 26th Nov 19, 11:35am 1574721347

You talking about the renter who pays the [genius?] landlord's measly 2% yield whilst avoiding paying 3.5%+ interest, insurance, rates, and maintenance and instead puts the money he/she saved aside into a diversified basket of assets?

by Yvil | 26th Nov 19, 11:46am 1574721970

Indeed, exactly the renter you mention. He may have the best intentions of putting his money in "a diversified basket of assets" but in reality his money will go into coffees, beer, all sorts of discretionary spending and yes, he will end up with nothing to his name at all. One of the often overlooked and greatest advantages of owning a house and paying a mortgage (apart from pride of ownership and freedom to do what you please with your own house) is that it is an amazing compulsary saving scheme

by cmat | 26th Nov 19, 1:43pm 1574728998

Right, so with that sweeping generalisation you've written off any chance of FHBs ever being able to save a deposit?

Because instead of being able to save *hundreds* of *thousands* of dollars, they (as totally ill-disciplined renters) will squander all the disposable income they ever receive on "coffees, beer, all sorts of discretionary spending and yes, [they] will end up with nothing to [their] name at all."

You forgot Avos, they will spend it all on Avos and have no deposit and be destitute.
All of them.
There is no hope.

by CourtJester | 26th Nov 19, 1:55pm 1574729714

So you're saying that one shouldn't drink a beer (or coffee even) until they've fully paid back their mortgage?
Noted.
Just don't mention the 'A' word or you'll sound like that idiot Tony Alexander.

by Yvil | 26th Nov 19, 2:00pm 1574730005

I'll help you out:
If you have a mortgage to pay off, you pay it monthly and spend the rest on discretionary items.
If you have the best intentions to save, you spend on discretionary items first and save what's left over... which invariably, is not much.
Such is human nature for the vast majority of people

by Pragmatist | 26th Nov 19, 2:30pm 1574731830

Maybe you haven't noticed, but it takes all of 3 minutes to set up an automatic transfer that puts aside $x every payday? You can even automatically transfer the money into an account with an investment brokerage.. or a gold merchant, or pretty much any other legal investment you want to use.

by Yvil | 26th Nov 19, 4:30pm 1574739019

If the majority of people were that disciplined with their finances, we wouldn't need Kiwisaver or even Superannuation but we do, don't we. Theory "it's easy for people to save" and practice "most people don't save unless forced to" are 2 different things, I don't think you understand human nature

by Pragmatist | 26th Nov 19, 4:40pm 1574739638

You mean i don't share your view. As was covered in the last few days, I know there are wastrels, I have extended family who will never own anything of value because they prefer to piss it away at the pub. But I am well aware of people who invest in thing other than real estate, and are quite good at stuffing dollars down the back of the sock drawer so to speak. You and Houseworks share the same set of blinkers.

by Yvil | 26th Nov 19, 4:45pm 1574739958

So why do we need Kiwisaver and Superannuation if most people are such good savers?

by Pragmatist | 26th Nov 19, 5:17pm 1574741823

you're doing a fine example of why right now... the lowest common denominator.

by Yvil | 26th Nov 19, 7:40pm 1574750410

I think you clearly lost that argument

by Narrabeen Boy | 26th Nov 19, 11:02am 1574719320

Not sure if it has anything to do with Auckland house prices but over in Sydney prices at auction are going for 300k 400k above the price guide.clearance rates are also getting up around 80 percent.

by cmat | 26th Nov 19, 11:34am 1574721240

I've been reliably told we are nothing like Sydney & Melbourne for the last 18 months.

by Pragmatist | 26th Nov 19, 11:35am 1574721308

But we are like London apparently...

by Due Diligence | 26th Nov 19, 12:40pm 1574725244

We are like Timbuktu and 2007 Ireland

by Shoreman | 26th Nov 19, 9:58am 1574715523

Clearly a growing confidence in the market funny how it fits with the known property cycle timing ! Eat your heart out RP if you're still round still investing in TD'S ?

by tothepoint - d… | 27th Nov 19, 2:48pm 1574819289

I very much doubt we’ll be hearing anymore from Retired-Poppy and his ilk........

Clearly, Retired-Poppy has fallen on his sword.

TTP

by rastus1 | 26th Nov 19, 10:25am 1574717128

The endless self centered back slapping uneducated nonsense that you and your little buddies vomit each day has probably driven him away - sensible man that he is.

by Yvil | 26th Nov 19, 10:44am 1574718253

A bit of a shame your view isn't a bit more centred and open minded, if it was you would realise that TTP & Shoreman's comments were not "uneducated nonsense" but right on the money and that the reason why RP is gone is that his "falling market" predictions were wrong. You could then learn something for your own good, from commenters who mostly make correct predictions.

by swapacrate | 26th Nov 19, 12:33pm 1574724828

Why would a prediction right or wrong make someone leave. Its a prediction. Its not war.

Houses in Auckland still unaffordable, so something will happen, when FHB cant get a deposit and buy property. Its out of reach for some, soon be out of reach for most. Must make you guys happy.

by Yvil | 26th Nov 19, 2:08pm 1574730502

Swapacrate, you talk about what's "right" or "wrong", a subjective opinion. When I say "I believe house prices will reach all time high values in March 2020" it's a prediction on what I believe will happen, without making a judgement whether it's good or bad. I take no pleasure at all from FHB struggling to buy a house, I also firmly believe this situation will only get worse. It's very dangerous to make a prediction based on what "should" happen (lower house prices so that more people can afford one).

by JLM | 26th Nov 19, 10:45pm 1574761556

"TTP & Shoreman's comments were not "uneducated nonsense" but right on the money and that the reason why RP is gone is that his "falling market" predictions were wrong."

Just going to chime in here and say that unfortunately both are wrong, and both are right.

Property market in NZ doesn't fall in nominal terms very far. About 12% on average. However it has much larger swings than that, that go totally unnoticed, it is the same this time round too.

Property market is down a lot, lot more than anyone could even imagine.

Some forward indications in the market are already pricing the property market at around 150% of GDP. We used to sit around 400%

by tothepoint - d… | 26th Nov 19, 9:59am 1574715577

A more buoyant housing market in Auckland is now apparent.

Hardly surprising - given the slack market of the last three years.

TTP

by custard | 26th Nov 19, 10:06am 1574715977

Or perhaps hardly surprising – given the extra fuel the RBNZ has thrown on the fire.

by printer8 | 26th Nov 19, 11:46am 1574722007

Custard
Congratulations you have identified one of the factors currently driving the Auckland market - very well, well done. You can be well proud of yourself.
Now you need to start to consider the other drivers in the Auckland market; continuing high levels of immigration, housing shortages, completed houses barely meeting the needs of natural population and immigration, improving affordability, continuing low rates of unemployment, improving wages, anecdotal information of increasing investor interest, improving rental yields, removal of potential CGT, reduction in new listings, decreasing price differentials with the regions hence FHB and investors begining to looking more to Auckland . . . . . .
RBNZ OCR rate cut was more to do with keeping the dollar down for exporters and helping to keep interest rates down for business investment to keep people in jobs. If it was about support for the housing market, then reducing LVRs would be a more targeted tool. So get over it; sorry, but your comment sounds like that one of a renting envious whinger.
If you are a frustrated potential FHB I understand your frustration; unfortunately the current drivers and trends indicate falling house prices and improving affordability are unlikely.

by custard | 26th Nov 19, 1:37pm 1574728675

Yes – I’m fully aware of all that you say - it's not rocket science.

You’re reading far too much into my comment – simply a throwaway line to a bit of a throwaway line from TTP.

by printer8 | 26th Nov 19, 3:25pm 1574735100

Cheers custard. That's fine.

by Yvil | 26th Nov 19, 11:50am 1574722208

Well custard, it is surprising to most commenters on this site who continuously see house prices falling, including yourself from your previous posts

by printer8 | 26th Nov 19, 1:02pm 1574726557

Custard
If you thought my comment was scathing there is a reason for it; if you are a potential FHB then you really do need to look at all the drivers currently influencing the market to be able to make a sound judgement as to its likely future.
The later article on affordability that increasing prices seem to be outweighing any benefit of the OCR and interest cuts in terms of affordability are scary.
FHB are faced with the a difficult situation. Sadly the likes of Retired Poppy who advocated FHB holding off due to a bubble burst - and later slowly deflating prices over the next eight years - was sadly wrong for FHB. (He also advocated that FHB put there money in term deposits; as these roll over he was sadly wrong on that account to as td rates fall significantly.)

by custard | 26th Nov 19, 1:52pm 1574729552

Yes I thought prices would fall to a greater extent than has actually happened – the price adjustment hasn’t transpired as I thought it would.

Interest rates and immigration have played their part in messing with my prediction – and I remain surprised with the moves in both.

by Yvil | 26th Nov 19, 2:13pm 1574730791

Kudos to you for admitting your prediction was off! Few here have this integrity

by printer8 | 26th Nov 19, 3:34pm 1574735667

Likewise; kudos to you custard.
I know that many have been of the view about a bubble burst and have been scathing of those - such as Yvil - who have been optimistic as to the future of the housing market in Auckland.
I appreciate the difficulties and challenges FHB face but wish them the intrinsic value and emotional and financial security that comes from home ownership. For many developed nations - such as those in Europe - home ownership is not the norm; I don't want to see that become the case here.

by CJ099 | 26th Nov 19, 10:25am 1574717135

Auckland prices are getting more realistic, which is helping sales at least in the more affordable areas.

by CJ099 | 26th Nov 19, 10:11am 1574716286

Noticed that he number of mortgagees are increasing in Auckland. And it's not the cheaper end properties, it's just as many very high end expensive property in the upmarket areas that's also showing up.
Take this one in Remuera : 5 Garden Road, Remuera, Auckland City, Auckland
https://www.trademe.co.nz/property/residential-property-for-sale/auctio…
And this huge waterfront property in Waiheke: 44 Donald Bruce Road, Surfdale, Waiheke Island, Auckland.
https://www.trademe.co.nz/property/residential-property-for-sale/auctio…

by loveyourwork | 26th Nov 19, 11:19am 1574720398

Waiheke property is spectacular!

by Pragmatist | 26th Nov 19, 11:06am 1574719582

~~Slightly higher auction numbers (~12%) and a higher clearance rate than same week last year. will be interesting to see what the calendar month figures are once this week is over.~~

Edit: Ignore, see theglc's post below.

by Dgm | 26th Nov 19, 10:43am 1574718232

Volumes just catching up from the disastrous winter and early spring.

Over a rolling 3 month period, volumes still down on last year

by Yvil | 26th Nov 19, 10:47am 1574718431

I would like to buy a house, my budget is about 3 to 4 volumes. LOL

by Due Diligence | 26th Nov 19, 11:11am 1574719916

I purchased some shares a while back and I now have terrible buyer’s remorse. Things have gone down hill as daily trading volume of the stock is down. The share price has quadrupled, but that is little consolation.

by Yvil | 26th Nov 19, 11:15am 1574720146

Hahaha

by nymad | 26th Nov 19, 11:38am 1574721508

Remind us - are shares hetero or homogeneous.
Then remind us - is the housing stock hetero or homogeneous.

Then reflect on how your statement highlights that you know less about distributions than an NCEA level 1 student.

Then ask Yvil to lol at your response.

by Yvil | 26th Nov 19, 11:51am 1574722260

Shares are Pansexual, Nymad

by Due Diligence | 26th Nov 19, 12:30pm 1574724647

Hetro, homo, pan, skolio - I don't discriminate when it comes to shares. Diversification is important. Variety is the spice of life and you don't want all your eggs in one basket.

by Dgm | 26th Nov 19, 11:25am 1574720750

It's a pity how dumb you are at times

by Yvil | 26th Nov 19, 11:52am 1574722355

Ohh, hit a nerve, DGM is resorting to being rude, hahaha

by Due Diligence | 26th Nov 19, 12:23pm 1574724192

The ESOL poet is normally so eloquent and quirky with his insults, but it seems he isn't on form today...

by Dgm | 26th Nov 19, 12:31pm 1574724678

BLSH, your true colours are displayed every time you post a comment...

its a pity you're not man enough to own up what a fool you were calling yourself ...BHSL, actually BLSH...

by theglc | 26th Nov 19, 10:59am 1574719189

That is alot more cleared than the same week last year where 56 were sold at a 29% clearance rate. However the FBB probably had a part to play in that.

https://www.interest.co.nz/property/97091/barfoot-thompson-had-more-pro…

Despite all this auction activity sales volumes have still stayed at a miserably low level.

Still looks like a stagnant Akld market to me

by Pragmatist | 26th Nov 19, 11:05am 1574719507

Interesting, i did a quick count off the auction results page (Filtering for B&T only and came up with different numbers. 58 sales from 158 properties giving a 33% clearance. I'll amend my comment.

by Yvil | 26th Nov 19, 11:18am 1574720301

The glc, Pragmatist, I don't think you're real estate agents? If not why are you interested in number of houses sold?

by Pragmatist | 26th Nov 19, 11:21am 1574720493

Because any market with thin volume is prone to rapid price swings..

by Yvil | 26th Nov 19, 11:54am 1574722476

You do really believe that, don't you? But Auckland volumes have been extremely low for the last 2 1/2 years and prices have barely changed...

by CourtJester | 26th Nov 19, 2:02pm 1574730121

So why do you think volumes have been so low for Auckland in the past 2 years, when, as you spruikers keep chanting:
- immigration is very high,
- interest rates are very low,
- the bull run is coming,
- it's always a good time to buy,
- foreign buyers were only 3% of the market.
What happened 2 and a half years ago? Why aren't we seeing the same numbers?

by Yvil | 26th Nov 19, 2:19pm 1574731191

I thought I made it quite clear, I don't care about volumes, people buy houses in $ not in "volumes"

by CourtJester | 26th Nov 19, 2:51pm 1574733076

You are doing a great job of not answering the actual question. You not caring about it doesn't make it irrelevant. It's an indicator, whether you like it or not.

by Pragmatist | 26th Nov 19, 2:15pm 1574730957

Over the last two years price have held up pretty well in spite of poor volume because the RBNZ and the Govt have thrown everything at the market to prop it up. OCR slashed, First home loan, first home grant etc.

Can't look at it as a single variable, there are several variables.

by house hunter | 26th Nov 19, 12:51pm 1574725914

Need to be careful not to read too much into the lower volumes though.

by theglc | 26th Nov 19, 11:44am 1574721866

Clearly when sales volumes continue to run at the 2nd or 3rd worst in the last 10 years, despite the huge population increase and amount of building going on in Auckland, it suggests things are not all too well.in the housing market.

Pretty obvious really

by RickStrauss | 26th Nov 19, 12:09pm 1574723353

Be informed the appropriate description is "buoyant".

by Pragmatist | 26th Nov 19, 2:16pm 1574730986

Like that turd that just wont flush..

by house hunter | 26th Nov 19, 1:01pm 1574726493

And/or perhaps it suggests that there was rampant short term speculation and quick renovation flipping in a rapidly rising market? Flat(ish) market, plus bright-line rule to some extent, could have greatly reduced that behavior?

I dunno - just a theory. Feel free to agree, refute, or something in-between :-).

by mikekirk29 | 26th Nov 19, 11:54am 1574722442

Perhaps it is because not only estate Agents are interested in ALL variables that measure a market's health?
Not just if price is going up.

by Yvil | 26th Nov 19, 12:00pm 1574722816

The only reason you guys talk about volumes is that you have predicted house prices to go down and they're not. so you're finding solace in the low volumes, which have very little to do with prices

by RickStrauss | 26th Nov 19, 12:10pm 1574723447

FYI, the REINZ HPI for October has been negative both October 2019 and 2018. So prices have been going down slowly, even if not much. Still, it's better for young Kiwis that they have been declining even slightly.

by theglc | 26th Nov 19, 12:30pm 1574724659

Youre starting to sound like TTP

Ive been predicting a 20-25% correction in Akld for the last few years and I still think its coming although the OCR cuts have stalled that from happening, the bigger issues with the global economy and out of control debt will be the real trigger.

Some here are suggesting the market is picking up, but when the median & HPI are flat and sales volumes in the doldrums clearly it is not

by CourtJester | 26th Nov 19, 2:06pm 1574730414

Yvil, I'm sure you're merely pretending to be dumb.
Imagine the following scenario: A bakery sells mince pies for $3 each, and they sell on average 100 of them a day. The bakery then increases the price of the mince pies to $5 each. Sales go down to 20 a day. What does that indicate to you?

by Yvil | 26th Nov 19, 2:16pm 1574731009

That you're making up a story about baking, out of thin air

by CourtJester | 26th Nov 19, 2:52pm 1574733173

Avoiding answering the actual question again. Such a great conversation partner.

by Yvil | 26th Nov 19, 7:41pm 1574750494

Not worth a reply

by Ex Expat | 26th Nov 19, 2:53pm 1574733208

I like your work. Very droll.

by mikekirk29 | 26th Nov 19, 7:48pm 1574750918

"low volumes have v little to do with prices"
And we thought global warming and Holocaust denial were dim....

by alittle | 26th Nov 19, 11:03am 1574719414

Attended raywhite Halfmoon Bay auction yesterday. Not many houses were sold under the hammer but houses that were sold went for fantastic price much more than expected or what they would have feteched earlier in the year - went appox 10% to 15% (those sale will support and lift the market)

Asking has also gone up. Houses that are not selling too want good price (like houses sold in Auction) but are not getting as good a price as other houses that had multiple interest so many unsold houses are not being sold - as another house with similar CV has gone 10% or 15% more than CV - so all those unsold also wants more than CV or atleast same as CV but are getting interest much below CV.

Market is on a High atleast in Auckland as few houses that are going at a premium will support the market like yesterday 20 Darren Crescent in halfmoon bay would have gone ealier in between early 800 to mid or high 800s (If lucky) with a CV of $86000 went for $955000. Similary 66 Freyburg Place should have been between $900s to Million went for much more - More than 1.2 Million (Do not know the exact as had moved) - had a CV of 1050000 and was purchased for a million in 2016- Houses in that area till September have been going between high 800s to mid 900s but one house in October whose expectation was $900000 went for a million and now 6 Freburg went for more than 1.2million - so the upward trend had started as all RE Agents use those houses as benchmark to sell and are successfull also.

by richard1965 | 26th Nov 19, 11:21am 1574720518

Wait till tomorrow and if LVR is changed nothing will stop the market from moving much higher as many FHB will panic when seeing rising house price and fear of losing out will force them to buy and as nothing much has changed in Ecenomy except low interest (Low interest by itself are indicator of how the ecenomy is perfomming and the direction in which it is going) so hopefully the bubble if started by RBNZ continues for a long time or the consequence for late entry will be very bad.

by Pragmatist | 26th Nov 19, 11:28am 1574720880

Why would a loosening in the LVR limits have any effect when that is not what is limiting the banks at the moment? Banks are nowhere near the existing LVR limits as it is.

by richard1965 | 26th Nov 19, 1:35pm 1574728513

Sentiments do play a role.

by Pragmatist | 26th Nov 19, 4:44pm 1574739859

Pretty sure if a bank lending officer makes decisions on "sentiment" rather than what the numbers on the loan application say they will soon find themselves out of a job. And the same goes for the higher ups in the bank that set the lending limits.

by cmat | 26th Nov 19, 11:42am 1574721754

Yay for instilling FOMO in kids and enticing them into ever more debt.

Our economy will now be unstoppable.

by Due Diligence | 26th Nov 19, 1:00pm 1574726449

Kids with FOMO tend not to MO.

by CourtJester | 26th Nov 19, 2:11pm 1574730661

In such an extremely overpriced market, kids without rich parents tend to MO...

by bw | 26th Nov 19, 11:46am 1574722006

So by inference - if the LVR's are unchanged tomorrow, then the market drops dead?
Interesting time we live in....because panic is the last thing the RBNZ needs - in either direction.

by mikekirk29 | 26th Nov 19, 11:51am 1574722315

In a used car lot sale, when a 20% off sale is on, sales increase.
As there is a finite number of buyers pa, the next period of equivalent time shows fewer sales.
Over 12m, the figures revert to the mean, ie pcm.
Housing market is no different.
First 9m sales in 2019 were down in Auckland and elsewhere, on 2018.
In last 2m they are up in AC and Papakura and Rodney but still flat or lower elsewhere.
The 12m running series to end of each month shows the trend and this is NOT provided either on this site, or by REINZ but has to be defined by examining their website. It shows that in 4m to end of Sept, residential Auckland sales fell. In 2018 for same period they rose.
Listings on RE NZ by the way have started falling for Xmas ALREADY. This did not start until 11.12.18 last year.

by Chairman Moa | 27th Nov 19, 1:40pm 1574815233

FOMO - FONGO - FOMO the circle of life!