Days to the General Election: 19
See Party Policies here. Party Lists here.

The number of properties being auctioned post-lockdown continues to rise but the sales rate remains steady at about 50%

The number of properties being auctioned post-lockdown continues to rise but the sales rate remains steady at about 50%

Residential auction activity has continued to steadily increase post-lockdown, with the number of properties auctioned in July up 71% compared to July last year.

Interest.co.nz monitored 903 residential property auctions over the four weeks from 1-28 July, compared to 529 in the equivalent four week period of last year.

The number of auctions monitored by interest.co.nz has bounced back quite quickly post lockdown, increasing from almost nothing in April, to 244 in the four weeks from 4-31 May, to 806 in the four weeks from 1-28 June, to 903 in the in the four weeks from 1-28 July.

The number of properties sold increased proportionally over that time but has remained remarkably consistent at about 50%.

That compares with a sales rate of 40% in July last year (see table below).

However prices appear to have firmed since lockdown.

Where interest.co.nz was able to match the selling prices of the properties that sold with the corresponding rating valuations (RVs), 81% sold for more than their RVs in July compared to 69% in June, 68% in May and 50% in July last year.

That suggests that the residential property market has not only recovered from the lockdown, it has been surprisingly buoyant over winter.

Details of all the properties offered at the auctions monitored by interest.co.nz and the results achieved, are available on our Residential Auction Results page.

The comment stream on this story is now closed.

Auctions Monitored by interest.co.nz
Four week period Number of properties auctioned Number of properties sold % of properties sold
4-31 May 2020 244 126 55%
1-28 June 2020 806 387 48%
1-28 July 2020 903 490 54%
1-28 July 2019 529 213 40%

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.

36 Comments

Market is showing more resilience than I thought it would 6 months ago.

And, notably, prices are still firming.

TTP

I didn't really have a view what the housing market would do 6 months ago, but it's definitely more resilient than I would have thought during lockdown (when all the forecasts were looking dire). Admittedly, a housing market correction can take months or years but this auction update is not suggestive of anything having spooked buyers, which is really surprising.

It must be driven by those Wong Key non- kiwis who want to sell and those Cindy kiwis returning from various parts of the Covid globe wanting to buy.

July sales look like will come in high enough to finish the job of making up deficit of lockdown. Crux however is what price brackets are up or down recently.

What a coincidence, apparently London has also had a surge in prime property purchases in the last few months. So much so they've had to introduce a 2% stamp duty surcharge for overseas buyers, which will come in effect in April 2021.

Times article: Budget 2020: Stamp duty hiked by 2% for overseas property buyers. "Overseas property buyers face a 2% surcharge on their stamp duty bill, as part of several Budget measures affecting housing.

The tax hike will come into effect for non-UK residents buying property in England and Northern Ireland from April 1, 2021." https://www.thetimes.co.uk/money-mentor/article/budget-2020-stamp-duty-h...

It looks like the RBNZ might have went too far this time in trying to keep up this charade. If they are not careful the plebs might realise that the NZ property market is rigged in favour of the rich and they might do something about it. Time to put the brakes back on a tad Adrian old chap.

I don't think the average pleb performs much in the way of critical thinking. Even if they did it's a case of vote blue they win or vote red you lose and you don't even get to vote for the RBNZ.

New Zealand is destined to circle the drain for a very long time to come. Jacinda is not going to lift a finger.

Sub 35 time to vote for a change in how the tax base operates. If you do nothing this election then expect nothing in return, as the high boomer turnout will be voting 100% in their interests.

Voting for TOP would be the way to drive a stake through the heart of the rent-seeking vampire.

Sadly most young people seem to think the woke olympics are more important.

Voting for TOP would be the way to waste a vote

For a exploiter debt farmer perhaps. If meaningfully change on the tax base is to stand a. Hance then it is an absolute valid vote.

Debt is like a giant vampire squid sucking the capacity out of everything. Only a minority think the wider out comes are ok.

They wont get 5% or an electorate seat. Votes for TOP will be discarded, practically speaking.

No it wouldn't. The TOP tax policy is a tax on non-income producing property only - if you had a pile of rentals producing taxable income, you would actually pay less under TOP due to their flat tax policy.

TOP policy is that you pay tax on actual income or imputed income, whichever is greater. You can't say who will pay less unless you have a detailed breakdown of their income and liabilities.

Market is holding up better than many expected because the RBNZ gave it another shot of morphine. As Global economic conditions worsen and the Government and RBNZ run out of support ammo, only then will we get a true read on things. Big risks coming from across the Tasman to our banks as well. The Australian economic situation will impact NZ as well. Time will tell by how much.

Market is holding up better than many expected because the RBNZ gave it another shot of morphine.

Another way of saying that the doom and gloom merchants were wrong because they failed to properly consider future monetary policy.

Let me guess. This means that central banks set the price of houses through influencing the price of debt.

Correct?

Bingo.

Supply and demand of credit is what drives the property market.

Monetary policy influences inflation. Surely this isn’t controversial?

Monetary policy influences inflation. Surely this isn’t controversial?

Not controversial at all. Just checking that this was the narrative. The lower the cost of credit means that the punters can borrow more to spend on houses.

To spend on everything, including the products/services in the CPI basket. At least we can agree on the basics.

How do you figure people are borrowing to spend on FMCG? Nielsen data suggests price discounts and promotions are among the highest in the Western world.

You know I didn’t mean people literally borrow money to buy groceries. Overall more borrowing, so relatively more money chasing relatively fewer goods/services.

OK not sure I got it, but I think you're saying FMCG prices will go through the roof because of money printing.

1-2% probably, which is higher than it would be without low interest rates. Why are we discussing this?

Should there be a warning for younger or FHBs on reading the doomer Covid comments re housing crashes on these comments/site?
As the FHBs who waited after the GFC lost 100,000s delaying buying their house.

Life lessons. Do your own critical thinking rather than listening to the whining of the envious.

Should there be a warning for younger or FHBs on reading the doomer Covid comments re housing crashes on these comments/site?

Yes. Something simple. Caveat emptor.

“surprisingly buoyant“ lovely words

10
up

"81% sold for more than their RVs in July compared to 69% in June, 68% in May and 50% in July last year."

A clear sign of rising prices.

10
up

100% Yvil

DGM lying low today.

Conspicuous by their absence.

TTP

Yes phew looks like all will be well. The magical NZ real estate market is resilient against all odds, now is the time to buy!
https://www.interest.co.nz/news/106451/latest-preliminary-results-anz-bu...

I suspect there are so many people now living and earning outside of the traditional economy who are property investors that are propping the market up. An acquaintance own 5 properties, just got another. Doesn't really have a day job mainly lives off income from the rentals.
In this alternative reality the housing market is to some extent sheltered from the real world economy.
Unless the real world economy really deteriorates, and unemployment surges, and rentals are abandoned. But that hasn't happened in any significant way, yet.

sorry, 'reported' by accident

"81% sold for more than their RVs in July compared to 69% in June, 68% in May and 50% in July last year."

from JB007 Spectre... The housing market, "You are a kite dancing in a hurricane"

Days to the General Election: 19
See Party Policies here. Party Lists here.