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Auction results suggest the buoyant residential property market shows no sign of slowing down

Auction results suggest the buoyant residential property market shows no sign of slowing down

Auction room activity suggests the strength of the residential property market evident in July is continuing into August.

Interest.co.nz monitored 228 residential property auctions in the first full week of August (3-9 August), compared to an average of 215 a week over the final two weeks of July.

Of the 228 properties on offer, sales were achieved on 135, giving an overall sales rate of 59%, virtually unchanged from the 58% sales rate over the final two weeks of July.

Prices also remained firm.

Where interest.co.nz was able to match up a sold property's selling price with its corresponding rating valuation, 83% achieved prices that were above the property's rating valuation.

Over the last two weeks of July prices were higher than rating valuations for 80% of the sold properties.

That suggests the market is steaming along at a fairly steady clip and has picked up quite a bit of speed compared to this time last year.

In the first full week of August last year (5-11 August) interest.co.nz monitored just 129 auction properties and the overall sales rate on them was just 54%.

That means the number of properties offered at auction was up 77% in the first week of August this year compared to a year earlier, while the number of properties sold was up 101%.

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

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27 Comments

Just like Stock Market - Housing Market is Touching all time High.

Is it in line with economy or.........

If supported by fundamental than is good and No need to worry but if not than.......

Yeah is very weird is it considering we've lost a major industry with International Tourism gone, lots of unemployment and wage subsidy due to the pandemic. And now we're in lock down again, Humm... I wonder will that have much impact? Still there's now no reason now for mortgage rates to drop any lower since our housing market is booming, if anything mortgage rates will probably head upwards if the boom continues.

Mortgage rates are not dictated by the housing market

Yavil Mortgage rates are indeed dictated by the housing market and our economy. If the housing market starts to stagnate and fall it is at risk of negative equity banks generally lower mortgages rates as a safe guard to help people to continue to pay off their mortgages. If they default on mortgage payments that is very bad news for banks.

My moniker is Yvil

> If the housing market starts to stagnate and fall it is at risk of negative equity banks generally lower mortgages rates as a safe guard to help people to continue to pay off their mortgages. If they default on mortgage payments that is very bad news for banks.

So its the banks, and not the housing market, that dictates mortgage rates.

Hi CJ099,

The predictions you made here around 6 months ago - concerning the housing market's performance this winter - didn't turn out to be too precise/reliable, did they?

Are you prepared to be accountable now for what you said - and take it on the chin?

If you do so, it's a pat on the back - I'll certainly hold you in much higher esteem.

TTP

More twaddle from ttp. You were predicting a decline only a few days ago, Don't forget to take it on the chin mate! :P

by tothepoint | 5th Aug 20, 7:42am

We might not see another housing market boom for 12 months or longer......

TTP

Hi CJ099,

I stand by the statement that you quote above. The housing market is running pretty warm at the moment - so I believe we might not see another housing market boom for 12 months or longer.

NOW, how about you being accountable for what you said a few months ago. How about taking it on the chin?

At the moment, you remind me of Crash-Crusader (aka Retired-Poppy) and we all know about his cock-ups and subsequent demise......

TTP

LOL keep twaddling Tim. Glad that I caught you out. :P

Hi CJ099,

Still not prepared to take it on the chin??

A person's integrity and reputation is hardly a laughing matter.......

TTP

LOL Even more hilarious because yours went a long time ago. But what you're failing to acknowledge Tim, is what is happening to the market and who is buying and how that effects our over all economy.

You're sounding a bit razzled, CJ099. (It's not hilarious.)

Are you prepared to be accountable for your mistaken predictions?

TTP

TTP, you predicted 12 percent falls. I remember you just thoughtlessly just copied the predictions of the ANZ.

Hi JimmyJames,

Note that I update my predictions as often as appropriate. At the time of the Covid-19 outbreak abroad, I was more pessimistic than I became shortly after it hit NZ.

Around the time of the lockdown here, I stated several times that, "the surprise would come not in a recession - but in the speed of the housing market's recovery."

Also, I predicted that the housing market would be "more resilient that many here dared believe".

My predictions have been among the most reliable you'll find anywhere.

If you distort the facts (as you have done above) then you show that you are not willing to debate the issues in good faith.

TTP

Hi TTP,

What is happening to stock and housing market is beyond anyone expectation be it expert and yes as of now both stock and housing market is not only stable but booming - touching all time high.

If it is based on fundamental than have nothing to fear but if not than have to be cautious as may give way anytime.

The tsunami of coronavirus has still not passed to evaluate and will only know what damage it has done along with the price that resereve bank and government has to pay to contain it in term of their polices (like QE and other stimulus) and its consequence.

People with deep pockets can do what they want (Can gamble/take risk) but first time home buyer and those entering stock market at this high price in recession should think twice and try to overcome FOMO.

The only tsunami of Coronavirus is the tsunami of printed money by RBNZ , Fed and other Reserve banks . The virus is just an excuse, not the problem. no wonder why this country experience such an exuberant home prices , as people seem to find hard to understand the obvious.

CJ099
re"Yeah is very weird . . . . "
Well, maybe to you.
You have been dependent on the conspiracy theory that any Auckland house selling more than RV is due to a foreign buyer.
However, most recognise that the strengthening of the market is not just confined to Auckland and is nationally; they also see a range of factors such as low mortgage rates and QE as drivers.
Meanwhile you have been besotted with your conspiracy theory. Maybe now given the numbers of Auckland houses selling over RV (83%) - surely not all foreign buyers - plus Auckland's strength is consistent with that nationwide, then it is these other drivers and not foreign buyers are the driver.
Unlike you, while surprising, this result is not weird to others.

More P8 dribble, And the only one who talks about conspiracy theories is you to distract everyone away from your dodgy Trust funds.
Ahh well looks like everyone has lost interest yawn. :)

CJ099
Thanks - I will tell both my 94 year old mother and wife that they are dodgy. Take note that you have most likely offended them as both have very high morals and a strict law abiding nature.
You just seem to love conspiracy theories.

Nahh it's you that loves call every differing opinion a conspiracy theory because you have no counter argument. Keep trolling P8 you know you love it! :)

CJ099
Definition of conspiracy theory = a belief without factual basis that some covert people or organization are responsible for an otherwise explainable event.

What is your factual basis that property owning family trusts are simply a cover for foreign buyers?

Meh p8, I've already posted it to you the link in regards to Trust funds several times now, Sorry but you're just too boring for me to bother to send it to you yet again. I'm having a nice evening I suggest you and your wife do too.

I was listening to an Australian economics podcast and they consider an auction clearance rate in Sydney/Melbourne over 75% as a hot market. Even at the peak I can’t remember Auckland getting that high- any experts out there know why the Auckland rates are lower than Sydney. Sydney clearance rates dropped below 50% and it’s a sign of a housing downturn

"runs hot"?
Total sales in 2020 so far in Auckland up 1.7% on first 7m of 2019
Sales above $1.5m up 46.5%. Sales 500-750, down 15%. Sales 750-900k up 6.8%
Sales $1.2m - 1.5m, up 35.8%
And, no, I do not think that a 35% increase in sales is due to price increases of same properties cf last sale.
So, can we have some differentiation please?

What’s happening in the 900k- 1.2m bracket?

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