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Barfoot & Thompson's auction rooms maintained their busy momentum at the start of August

Barfoot & Thompson's auction rooms maintained their busy momentum at the start of August

There was no sign of any slowdown in Barfoot & Thompson's auction rooms in the first week of August, with the agency marketing 115 residential properties for sale by auction, compared to 107 the previous week.

Of those, sales were achieved on 63, slightly down from the 65 auction sales achieved the previous week.

That pushed the overall sales rate down a tad to 55% from 61% in the last week of July.

The highest sales rate of the week, leaving aside the single mortgagee sale which gave a sales rate of 100%, was the Shortland Street auction on August 5. There, 20 properties form from central and western suburbs ranging from St Heliers, St Johns, Remuera, Glen Innes, New Lynn and Te Atatu were on offer and sales were achieved on three quarters of them.

At the big Manukau auction the sales rate was 58%, and at the North Shore auctions the overall sales rate was 43%.

Details of the individual properties offered and the results achieved are available on our Residential Auction Results page.

The comment stream on this story is now closed.

Barfoot & Thompson Residential Auction Results
3-9 August 2020
Date Venue Sold Sold Prior Not sold Withdrawn Total % Sold
3-9 August On-site 6 1 6   13 54%
4 August Manukau 11 4 10 1 26 58%
4 August Shortland St 8 1 4   13 69%
5 August Mortgagee/Court 1       1 100%
5 August Shortland St 14 1 5   20 75%
5 August Pukekohe 1   3   4 25%
6 August North Shore 7 5 15 1 28 43%
6 August Shortland St 1   2   3 33%
7 August Shortland St 1 1 5   7 29%
Total All venues 50 13 50 2 115 55%

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34 Comments

Wow it's been a whole hour since this property article popped up and no coments!!!that must be some kind of record!!!!

Those pesky doom and gloom merchants are probably too busy shaking off their envy, swallowing their pride and making up for lost time by finally getting aboard the property rocket to comment on here at the moment. Shouldn't have listened to spurious claims from such monikers as Retired-Poopy and PropertyPrice2Fail. The property market is showing true resilience, as it has done since the beginning of time, one shouldn't be put off by oscillations or temporary dips in the market as housing is a long term game.

I guess, people probably are too busy doing up their CVs and/or beefing up their incomes in paper so they can apply for bigger home loans...

If the news was that house sales are struggling, there would be 100 comments proclaiming the imminent collapse of the RE market

You're spot-on with that comment, Yvil.

But, as has been noted many times here, even if house prices fell dramatically the DGM still wouldn't buy - simply because they lack the wherewithal when it comes to property ownership. They'd "rationalise" their hesitancy by proclaiming that house prices were going to fall even further.......

The DGM will remain, forever, disaffected commentators sitting on the sideline. Spare a thought for the timid.

TTP

Hey Bro, do they sell this wherewithal at the auction room vending machine ? I feel like Im missing out.

15
up

I can really sense you have a bit hatred towards people who hold different views from yours from this comment. Come on, man. It's an open forum. You should allow different views from people.

19
up

Ultra low interest rates result in more leverage in the housing market...it's not rocket science. Young people taking on astronomical amounts of debt just to get into their first home because they have to fight the so called 'property investors' of NZ who have nowhere else to put their money in this environment. And so the wealth gap in NZ continues to widen. "It is what it is"

Spectators
You misunderstand - you are seeing it wrong. Using your standard of rationale; property investors are providing homes for the homeless. :)
Your view that property investors are cutting out FHB is a self-centred, self-entitled view. Get real and face the real world; there are home owners, renters and unfortunately homeless. If you want to be a FHB then do something about it rather than self-entitled moaning - after all RBNZ figures show that 80,000 mortgages have gone to about 150,000 FHB in past three years.

No printer8 ...the taxpayer is "topping up" your mortgage repayments, through the accommodation supplement, while if you are an investor with no mortgage, it just goes "straight into your back pocket". You always "rave on' how you are doing such a good "social service", but that's just BS, as if there was no profit in it, you wouldn't be a property investor.

I have done all the scenarios in NZ - been a renter, rented out my own property and rented another, and rented out my own property while overseas. I'm at a point now where I just have the one property in NZ (my home) and wouldn't dream (as an investor) of putting more money into residential property right now....especially as I am in the US residential property market (have been since 2012) and the returns are so much greater, in so many ways.

I was also a property manager for a few years in the mid-late 2000's and have a good handle on just how the typical NZ landlord "ticks" ...and they were far more tighter than the tenants !! ...and most of them wouldn't dream of doing any maintenance at all, especially the ones living overseas.

So you have a great day printer8 and keep fooling yourself what a "wonderful social deed" you are doing, while I know if you were truly like that, you wouldn't be trolling on this website, encouraging all these FHB's to jump in "boots 'n all" ! BTW I bet you aren't buying yourself ??? ....but I wouldn't get an honest answer out of you anyway :)

Crazy horse
Wow! Pretty fired up comment there.
Expecting a bite - tongue in cheek just applying the same rationale as in original comment to show how ridiculous it was and your response clearly supports that.
Have never claimed to be an investor providing a social service - that is governments role.
Cheers

printer8 .....why is it a "fired up"comment ? ....I am only telling the truth of my own experiences, not just using rhetorical ideas you and your ilk ie Yvil & TTP use "like a broken record" ....and challenge everyone that disagrees with them, as a "DGM Merchant" ....does it ever cross your mind that I actually like residential property as an investment, and believe it goes in cycles, while it's not a "one way trajectory" always on the up.

At this moment those cycles have been "distorted" by very low interest rates, bank mortgage holidays and the govt with it's wage top ups etc due to Covid-19 ..... which are just about to end.

So my advice to any FHB would be to wait till at least after the election and also see how the unemployment rates go .....and if you have to buy, please ensure that what ever happens, you or both of you will still have employment...... and PLEASE don't believe anyone that tells you "Nu zullun is diffrunt"

I agree, but ultimately, our generation have to take some responsibility for the crippling debt we are taking on. Its hard to block out the RE noise but us young folk need to realise that a poor financial decision now could destroy many future opportunities. As a FHB, I'm happy with our decision due to the quality of our house (new build in a good area) but our debt to income is about 2.2:1, much lower than many other FHBs. If we were looking at 4:1 debt to income, we wouldn't have bought.

As a homeowner, they totally do not have to take responsibility for what the debt they have had to take on. They need a home to live, renting is not the same. The bankers and politicians have created a system where you have to swim with the tide. its isnt logical or healthy for society. All these property "investors" should be discouraged from property and encouraged to invest in business and productive assets through tax. Everyone is too scared to change the system as our entire economy is based on it and people are too risk averse to try anything else. The point i am making is swim with the tide, it will hold up longer then.you think.

Agreed. Its a form of exploitation.

I totally agree with your point. However, I encourage FHB to not get caught up in FOMO and buy a rundown dogbox over RV.
A big ask, I know.

Surely aucklanders aren't that gullable?

Seems a bit steep to me.

I live in that area and it's fantastic.

Very convenient, lots of amenities, close to motorway ramps (but not too close), walking distance to the CBD, bike paths, good schools, lots of shopping, restaurants and bars nearby...

A quick look at the land values across that whole suburb suggest between $500k - $750k for the land alone...

Lol , you have got to laugh at the 1 'successful " Mortgagee sale .

Firstly , there is nothing "successful" about a Mortgagee sale, there are no winners , other than the vulture who feeds off the carcass

There are quite a few Mortgagee sales that have not sold and been on the market for ages .

No winners from a mortgagee sale??? You clearly have never bought anything on sale. I suppose you wouldn't buy anything on sale, clothes, electronics, food, furniture etc... because that would make you a "vulture who feeds off the carcass" according to your own words.

Mortgagee sale is a bit different to a sale on cheap imported goods from countries with poor working conditions

REINZ sales stats due this week.
Provisionally, looks like will be 12% rise on July 2019.

In April, May and June 2019, the total sales were: 5616
In 2020 it was: 3795
In July 2019 there were 1992 sales.
So, April-July total in 2019 was: 7608
To reach that, and make up for the losses in lockdown, July 2020 sales will have to be 1821 up on 2019.
So, to complete recovery of lost sales July 2020 sales will have to be 3813.
If so, that would be 91% up on July 19
This, needless to say, is extremely improbable.
So, when people continue to refer to robust and recovered and strong market, can they please refer to facts re who is buying and in what numbers.
My Auckland forecast for July 2020 is for sales around 2325.

Great perspective Mike, keep them coming.

Looks similar to retail where the post lockdown spike doesnt really cover the loses.

No matter what happens this is going to be a fascinating next 6 months or so. How many jobs will be lost, will house price plummet stay flat or make gains, how much money can the govt print and what consequences will occur...

Are low interest rates and QE just going to exacerbate or extend the current asset price bubble?
Or will a correction shake out in the wash over the next couple of years?

Wish it wasn't so extremely overvalued, then hopeful FHB like me wouldn't have to worry about all this crap.

1) yes
2) maybe

Hi,

FHB market in Auckland has a lot more properties in lower brackets than a year ago, but prices have not responded to slow down in economy yet.
Prices will start to drop as excess property on market (over 3 months) starts to clog up market.
That will probably start around November.
But prices in Auckland will only drop in price slowly and particular suburbs will remain better than others, price wise, for FHB.
where ru looking ?

Why are so many people selling now if expecting the market to be strong unless are worried and aware that situation may change anytime in futur and fast.

For now market is very strong and houses that are being bidded and selling under the hammer are going at premium price - beyond vendors and RE Agents expectation.

Though house price should soften in future for number of fundamental reason but seeing market today hard to say, if it will though it should.

Interesting uncertain time with no one having any clue about future so is wait and watch.

Also know few who have been informed by their office that wage subsidy is ending so may not be able to support and may have to go for redundancy and of them, few were looking to buy their first home but one person losing job their borrowing capacity will be reduced.

"Why are so many people selling now if expecting the market to be strong"

Did it ever cross your mind that for every seller there is also a buyer? You could just as well say: "Why are so many people buying now if expecting the market to be strong…"

I think you mean ‘why so many buyers now if expecting the market to be weak?’, Yvil?

You'll get used to his backwards thinking.

Lot more sellers and buyers above $1.5m, than there are below $900k

FOMO is the word Yvil but for now no denying that market is strong.

Above 1.5m
Not below $900k I am afraid
I have presented data showing this for Auckland

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