Slightly fewer properties auctioned by Barfoot & Thompson in second week of lockdown

Property

Barfoot & Thompson auctioned 111 residential properties online in the second week of lockdown, down from 136 the previous week

25th Aug 20, 11:58am by Greg Ninness

The number of auction properties handled by Barfoot & Thompson took a slight dip last week.

Barfoots auctioned 111 residential properties online in the week from 17-23 August, compared to 136 the previous week.

Of those, sales were achieved on 64 properties, with seven being sold prior to the commencement of the auction and 57 selling under the hammer.

That gave an overall sales rate for the week of 58%.

However, at the time of writing, Barfoots had not released their post-auction results for last week, possibly due to lockdown-related issues, so the above results do not include sales that were negotiated immediately after the auction.

Which means that at this stage it is not possible to make an apples-with-apples comparison with the sales achieved at previous weeks' auctions.

But taking that into account, it's likely that the overall sales rate last week was broadly similar to previous weeks' results.

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 Residential Auction Results
17-23 August 2020
Date	Location	Sold	Sold Prior	Passed in	Total	% Sold
19 Aug	Kerikeri	1			1	100%
20 Aug	Rodney	4		1	5	80%
19-20 Aug	North Shore	7	1	9	17	47%
18-21 Aug	Waitakere	6	1	7	14	50%
17-21 Aug	Central suburbs	20	5	13	38	66%
18-21 Aug	Manukau

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29 Comments

by mikekirk29 | 25th Aug 20, 12:06pm 1598314016

Hi Greg

what is your opinion of the utility fo the metric I report on here, which is the % of sales lost in lockdown in April and May, that has been made up for in increased sale sin June and July, compared to same months in 2019?
I think this, and the overall sales for the year (from Jan-July) and last 12m, is a better measure of "recovery" of health of the market, than are auction sales.

by tothepoint - d… | 25th Aug 20, 1:12pm 1598317946

Well-located houses in Auckland remain as scarce as hens’ teeth - especially in the inner-city suburbs like Ponsonby, Freemans Bay, St Marys Bay & Herne Bay.

House owners in those suburbs know they’re onto a good thing and are staying put...... Can’t blame them, I suppose.

TTP

by J.C. | 25th Aug 20, 1:36pm 1598319417

Scarce as hen's teeth? I'm sure many home owners in that area would jump at the bit right now if someone was prepared to hand over a king's ransom for their property. The area is well populated by urban professionals, many of whom are taking a monkey hammering on income at present. The incidence of uber-wealthy in that area is not as high as many would think and those people own homes that are far out of reach for the 99%.

by tothepoint - d… | 25th Aug 20, 2:10pm 1598321455

With all due respect J.C., there are relatively few houses (as distinct from apartments) that are coming on the market in those areas.......

And when they sell, they commonly set record prices - well beyond RV.

TTP

by J.C. | 25th Aug 20, 2:29pm 1598322544

Browsing the listings only gives you a sketchy understanding of "the market" and tells you nothing about the motivations and expectations of home owners. Naturally, there is a trade off between realizable value and desirability of living in central Auckland (which is not some kind of garden of Eden no matter what the people living there might think. There are many wonderful places to live). And given what I described in terms of income pressures and change, people would be nuts not to consider selling their home for a king's ransom. That fits in very well with the notion of housing as a savings vehicle. But the question remains as to whether or not that king's ransom will ever arrive.

by tothepoint - d… | 25th Aug 20, 2:50pm 1598323805

Hi J.C.,

You may well think that home owners in those areas, "would be nuts not to consider selling their home for a king's ransom".......

But, clearly, they beg to disagree with you. (I imagine that most are there for the long haul.)

TTP

by Crazy Horse | 25th Aug 20, 2:53pm 1598324020

ttp ......you seem to be so "extremely confident" about the NZ residential property market, where do you get your "information" from to make these broad , sweeping statements of such “positivity” ?

On August 22 there was a story on this website titled “Auction room activity is going from strength to strength with the sales rate hitting two thirds” 22nd Aug 20, 10:07am by Greg Ninness and you were replying to “b21” on 22nd Aug 20, 1:42pm and you said the following…….” If you don't like it here, then go live in New York or Melbourne - or wherever you fancy......Please be assured that there are plenty of others who would like to live here - and happily take your place.”

I replied to the above and said the following:
by Crazy Horse | 24th Aug 20, 2:01pm

Just how does the great "Oracle of Palmy"aka tothepoint, come up with blanket statements like .......... "Please be assured that there are plenty of others who would like to live here - and happily take your place." ........Where are the facts ttp? not just your rhetorical pomposity because "I said so" .
The people I know from overseas, when I take them for a drive around Auckland, they say "all fine and dandy" if you already have at least USD 1 mil as your deposit ! - then when we drive through the state house areas of Mt Roskill etc and I tell them how much for that cold, depressing, damp 3dm + 1 bth house and I casually say, "oh about $975k" they just about choke up and fall round the back seat laughing hysterically !

You keep making such “statements” both now and in the past, so you are obviously “pushing a wheelbarrow” either for yourself or someone else. While people can read right through it - so you can fool some of the people some of the time, but not all of the people all of the time”

At least if you are going to make these statements, back it up with facts or examples – otherwise it looks to me you are just t.t.p …or taking the “proverbial”.

by tothepoint - d… | 25th Aug 20, 3:11pm 1598325082

Hi Crazy,

Happy to be judged by my track record.

TTP

by Crazy Horse | 25th Aug 20, 3:18pm 1598325523

.....which we will never know anyway....so proves my point.

by J.C. | 25th Aug 20, 3:10pm 1598325023

But, clearly, they beg to disagree with you. (I imagine that most are there for the long haul.)

How do you know? You're saying that their desire to live in Central Auckland is so great that no amount of money would influence them to sell. Given the current climate, that's a fairly big claim.

by Roelof | 25th Aug 20, 3:32pm 1598326350

J C ... I think he is saying that most people treat their house as a home and not a tradable financial asset. I would not sell unless I was offered at least 50% above market value.... and even then , I'd want to be sure I could rebuy like for like, in the neighbourhood I want.
I agree with TTP that there is a lack of good quality homes in Auckland. eg I like privacy from neighbours, and a certain zen kinda feel, which shys me away from most infill housing.
Privacy, sunlight, good feel, good location...etc.. ,
If its a family home , nobody is going to give that up just for a bit of profit... ( thou, I'd agree, we all probably have a price where we say yes. ).
just my view...

by Yvil | 25th Aug 20, 5:46pm 1598334386

J.C. I have sold my house in Ponsonby 2 months ago, Got 19% above RV and $980k more than I bought it 7 1/2 years ago, I assure you there was no problem selling it with plenty of interested buyers. I have kept a close eye on houses for sale in the greater Ponsonby area for years and I obviously still do as I intend on re-buying into the area in 1 months time. I was expecting a drop off too, this hasn't happened whatsoever so far and there are indeed only few houses for sale. It might still happen in the future but definitely not now.

by J.C. | 25th Aug 20, 7:20pm 1598340034

J.C. I have sold my house in Ponsonby 2 months ago, Got 19% above RV and $980k more than I bought it 7 1/2 years ago,

OK, if you say you did, then it must be true. Does $980k qualifiy as a 'king's ransom' though? That sounds like a fairly average price in Auckland.

by tothepoint - d… | 25th Aug 20, 7:56pm 1598342175

One can buy 3 liveable houses in Palmerston North for $980,000, so I reckon Yvil’s done ok.....

TTP

by Yvil | 25th Aug 20, 8:06pm 1598342818

Sorry guys you misunderstood, $980k is the net profit, I sold the house for $2.38 M, and bought it for $1.4 M 7 1/2 years ago. Indeed $980k doesn't buy you a house in Ponsonby

by J.C. | 25th Aug 20, 8:18pm 1598343483

Sorry guys you misunderstood, $980k is the net profit, I sold the house for $2.38 M, and bought it for $1.4 M 7 1/2 years ago. Indeed $980k doesn't buy you a house in Ponsonby

OK. Thanks for the clarification. So you're basically saying a king's ransom is available to property owners in the neighborhood....if they wish to put their property on the market. Much of the narrative in Granny Herald seems to semantically support this.

by RickStrauss | 26th Aug 20, 11:57am 1598399834

Profit is taxable, right. Did you pay tax on the profit you made? Or was it the family home?

by Rob Reid | 25th Aug 20, 8:06pm 1598342798

Since we are being subjective, I would say "$980k more than I bought it 7 1/2 years ago" would slide into the King's Ransom slot on my score board!

by tothepoint - d… | 25th Aug 20, 8:13pm 1598343222

Well done, Yvil.

And you’re very wise buying back into Ponsonby without delaying things.....

TTP

by Yvil | 25th Aug 20, 8:51pm 1598345491

I may not be that wise TTP, I have decided to rent a place for 12 month, partly because of some of the articles and comments here on Interest but I'm doubting if it was the right decision. I did not anticipate the RB and the Government to throw the kitchen sink at the economic problems… I shall find out in 10 months

by Te Kooti | 25th Aug 20, 10:01pm 1598349711

Noooooo Yvil, what are you doing??? Listening to DGM's, tell me it isn't true...

by J.C. | 25th Aug 20, 10:13pm 1598350391

Noooooo Yvil, what are you doing??? Listening to DGM's, tell me it isn't true

Yes, if your hypothesis holds, this could be the greatest opportunity you ever have. The DGM stuff is just the risk that you don't really know or cannot quantify.

by al123 | 26th Aug 20, 1:13pm 1598404399

Wait, what? Weren't you just on another thread warning against FHB'ers waiting for now because it will cost them hundreds of thousands and lead to them being perpetual renters?
I'm not making a dig at you here - I'm sincerely interested, seeing as I am in a similar position (renting, ready to buy, but uncertain). If even the commenters here that are usually in favour of buying as soon as you can are holding off then that's real pause for thought.

by EmperorXi | 26th Aug 20, 2:21pm 1598408511

Good stuff Yvil you sure are the lucky ones to abandon ship on a comfy life boat with a lot of rations to keep you afloat for a while, I am moving in the same direction.

A lot of folks do not understand, quantitative easing is one of the most addictive / damaging thing that can happen to an economy (comparable to a Crack High), once the high's over you need another hit............ sooner or later you'd end up on the street and get dragged to rehab................ same thing will happen to our economy sooner or later.

by realterms | 25th Aug 20, 12:08pm 1598314105

A thought. Lots of boomers are holding large family houses that they no longer really need all of. The reasons that such people sell might be: 1) they think the time is right to get a good price; 2) they want to realise the equity for travel, boats, etc; 3) moving to aged residential care; 4) deceased estate.

The lack of listings suggests to me that reasons 1-3 are not happening to many people, and in particular it's easy to imagine how covid will put the breaks on #2 and 3.

by b21 | 25th Aug 20, 3:09pm 1598324976

I haven't been able to find any data about what percentage of properties are sold by auction these days compared to the top of the bubble, higher percentages for lower absolute numbers would indicate RE agents would bring to auction those few properties they are confident they will sell.

by stuart786786 | 25th Aug 20, 3:53pm 1598327622

It seems result is excellent.

Housing Boom Continues.......

by richard1965 | 25th Aug 20, 3:57pm 1598327876

Yeah excellent result. Checking Manukau from auction result and most houses went 5% to 40% above CV.

Like Stock Market even Housing Market is on High.

by lekkerbydiesee | 26th Aug 20, 9:59am 1598392769

the comments section of this website has been mostly bearish on property for the last 5 years. I myself can't understand why property in NZ is so unaffordable. The system is clearly broken, but a crash won't happen, because that would expose the banks leveraged balance sheets and the NZ govt (Labour or National) will support the banks before voters. not sure why . . . .
Essentially property will keep going to the moon. I predict we will eventually have 1 to 1.5% retail interest rates and we'll be lending $3M for an apartment in Beachaven. Great situation for kids hey? Debt slaves unless . . . . . .
inflation picks up significantly in the US from a falling currency and they have to start raising rates to save the USD - Volcker style, then and only then, does legitimate price discovery return to markets. My guess is, that is years away - or maybe not - maybe Powell is going to do something crazy on Thursday.
Easy money has blown so many asset bubbles that I don't want to play anymore. I stick physical gold with no leverage.