Barfoot & Thompson had its best November ever last month

Property

Barfoot & Thompson's sales were through the roof in November - prices at record highs

2nd Dec 20, 10:16am by Greg Ninness

Barfoot & Thompson had a scorcher of a month in November with sales going through the roof and both average and median selling prices setting new records.

The real estate agency, which is the largest in the Auckland market by a substantial margin, sold 1551 residential properties in November, which was the highest number of properties the agency has ever sold in the month of November and the highest in any month of the year since March 2015.

The average selling price of $1,055,971 and the median selling price of $974,000 were both record highs.

New listings also poured into the agency's offices, with 2335 new listings received in November which was the highest number of new listings the agency has ever received in a single month.

However although new listings rose strongly, the total number of properties the agency had available for sale grew more modestly.

Barfoot's had a total of 4043 residential properties for sale at the end of November, up 9.2% compared to November last year but still around 16% below the levels of November 2018 and 2017.

"The market is as busy now as it was at the height of the last major buying cycle between 2013 and 2016," Barfoot & Thompson managing director Peter Thompson said.

"Only once before, in March 2015, have we sold 1500 homes in a calendar month.

"At the start of the year, $1 million homes represented about a third of our total sales but for the last two months they have represented just under half of all sales.

"And for the second month in a row we sold more than 100 homes for more than $2 million.

"The prices being achieved are bringing more vendors into the market and at month end we had 4043 properties on our books.

"This is the highest number of listings we have had at month end for 17 months and this is likely to see the current strong levels of sales being maintained through to the Christmas/New year break."

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72 Comments

by b21 | 2nd Dec 20, 10:31am 1606858311

As long as raising housing prices are a positive factor for RE agencies the problem will just get bigger, we must now act and legislate for breaking this conflict which is harming us as a society.

by Zack Brando | 2nd Dec 20, 3:24pm 1606875893

Jacinda, in the past 12 months, MAY HAVE had her property value increase by the same amount as her Prime Ministerial Salary?

by Yvil | 2nd Dec 20, 11:52am 1606863152

Probably by more that her salary and she doesn't have to pay tax on the house price increase like she does for her salary

by Zack Brando | 2nd Dec 20, 11:55am 1606863345

GOOD TAX POINT !! lol :)

by tothepoint | 3rd Dec 20, 3:59pm 1606964340

Congratulations to Barfoot and Thompson on its November sales record.

TTP

by Bugger | 2nd Dec 20, 10:49pm 1606902567

There's only one thing to do....Get your RE license.

by mikekirk29 | 2nd Dec 20, 10:22am 1606857731

Median up 9.6% on a year ago.
Sales overall up 61%.
Again, it pays to remember that sale sand prices were v subdued from early 2017 to October 2019.
So, lots of folk were waiting for lower rates and no LVR.
How long will incoming wave take to weaken?
It is moderating but only from mania. Will be February before we really know.
For now, the party continues, but not quite as noisily and fewer arrivals.
It would be nice to know how many Barfoots sold off plan compared to a year ago. Compared to sales by actual existing homes by home owners.

by xingmowang | 2nd Dec 20, 10:26am 1606857962

House price will continue to go up to as a result of, essentially, the decreasing productivity and decreasing real wage in New Zealand.

by J.C. | 2nd Dec 20, 3:08pm 1606874921

House price will continue to go up to as a result of, essentially, the decreasing productivity and decreasing real wage in New Zealand.

House prices are going up as a result of the expanding money supply. It's all part of monetary debasement. Been rampant for quite a long time but now being ramped up like never before.

by mikekirk29 | 2nd Dec 20, 11:05am 1606860353

12 month sales to November, from Barfoots site:

Nov 14: 11,776
Nov 15: 13,983
Nov 16: 12,049
Nov 17: 9,084
Nov 18: 9,989
Nov 19: 9,168
Nov 20: 11,364

So, 12m to November 2020 sales are what they were in Nov 2014, in 12m series.
Meanwhile, pop is up 200,000 in Auckland and stock about 13%
So, sales have not increased in those 6 years, despite no LVR, interest rates under half what they were and 67,000 more households (if average 3 per household)
Yes, sales are spectacularly better than in 2017-19, but not in a wider perspective.
More granular detail of WHAT is being sold compared to a year ago, in respect to stuff not built yet would be revealing.

by b21 | 2nd Dec 20, 10:37am 1606858629

Thanks once again for sharing the data and give some perspective to the otherwise polluted data we get from the agency headlines.

Is this available currently on the B&T website?

by HeavyG | 2nd Dec 20, 10:56am 1606859768

Two different data sets. Sales in month of November versus sales in 12 months to November. Only a dim wit would've missed the difference.

by b21 | 2nd Dec 20, 11:01am 1606860114

Watch your language HeavyG.

Who said someone missed the difference? Monthly figures contain much noise so rolling numbers are usually much more representative.

by HeavyG | 2nd Dec 20, 11:07am 1606860430

"Polluted data", you should be the one watching your language.

Mike is a cherry picker extraordinaire. Interesting (well not really) but ultimately worthless analysis. That you hang off his every word is telling.

by mikekirk29 | 2nd Dec 20, 11:10am 1606860609

If you bothered to analyse what is on the barefoot site, and also look at what is being compared to what (without it being made explicit) you would see there are plenty of cherries and that in stats you have to compare like with like. which is not possible unless one defines the terms and components. And you seem to have made no such effort in order to counter my remarks. Dismissal is so much easier isn't it?

by HeavyG | 2nd Dec 20, 11:22am 1606861375

I am not saying they data is incorrect, I am saying "meh".

You're like the guy that constantly says "I've had better".

Great meal aye? Mike: I've had better.
Awesome show wasn't it? Mike: I've seen better.
How was that for you lover? Mike: I've had better.

by mikekirk29 | 2nd Dec 20, 11:23am 1606861391

Not quite. It WAS better. there were more sales. Houses were cheaper.
Context and discrimination and judgement are pretty normal expectations.
Not utilising them is not to use cognitive function required in analysing what is presented. Much of time, have to look at what is NOT being given and then ask why not.
if not going to ask questions, then it is pretty passive.

by b21 | 2nd Dec 20, 11:12am 1606860776

If you are not interested or want to ignore the data you are free to do so, keep reading the headlines about a 3m townhouse being sold on NZherald if that makes you happy, that is cherry picking.

by mikekirk29 | 2nd Dec 20, 11:07am 1606860453

read what I said a little more carefully. I have added in "12m series" in the sentence you are I think referring to.
But it was pretty apparent that I was referring to 12m series and not November month alone.

by mikekirk29 | 2nd Dec 20, 11:02am 1606860136

12m sales rates are on Barfoots site, under market reports on LHS for each month. Then go to the report for that month, which gives 12m series.

by b21 | 2nd Dec 20, 11:05am 1606860339

Thanks. So basically this means this hysteria didn't really make it up for the months we were in lockdown.

by mikekirk29 | 2nd Dec 20, 11:13am 1606860828

Well, July-october sales have been extraordinary and have taken 12m rolling series to 25,975 at end of October.
That is about 17% higher than 12m series was back in October 2019.
So certainly a big increase.
It is imply that the sales increase is not put in context of bigger pool of available stock, so it is not comparing like with like.
12m 2015 sales were 30,707 for example, with a much lower pop and less stock.
This is not stated by Barfoots or anyone else.

by Yvil | 2nd Dec 20, 11:57am 1606863476

b21, MK, this cherry picking is purely to make yourself feel better, your hope is that the market may not be as strong as generally stated. Com'on guys, the RE market is incredibly strong, both in prices and volumes, stop arguing against the obvious.

by mikekirk29 | 2nd Dec 20, 12:43pm 1606866239

Hi Yvil,

I have said repeatedly, to recognise obvious, that market is strong by price and sales.
But you have to know what you are comparing it to, in time terms and in terms of what is the market.
ie: number on sale as a % of stock and pop relative sizes over last 6 years.

by mikekirk29 | 2nd Dec 20, 10:36am 1606858587

Last mania was 2014-15.
Sales in 12m to Nov 2015 were 13,983
Sales in last 12m to Nov 2020: 11,464
Down 18.7% off last mania high.

by Carlos67 | 2nd Dec 20, 9:18pm 1606897136

I think you need to also look at the available stock for sale. You can only sell it if its for sale and stock for sale has crashed so the sales numbers recently have been phenomenal. Good houses going onto the market are not hanging around. In tauranga an area I have been watching for over 12 months the number of homes for sale now are almost down to HALF of what they were 6 months ago. The crazy times continue, personally I don't know where the money is coming from.

by mikekirk29 | 4th Dec 20, 9:17am 1607026632

Hi carlos67

slight error I think you are falling into which I also did.
Turnover is high, so stock in total LOOKS lower. Selling faster, so stock does not amass as it did in 2018 and 2019.
That stock is determined also by what is not selling, which is largely (or was til 5m ago) stuff not built yet and off plan. That stuff is being cleared out by investors. Hence OTM over month is falling to v low levels.

by taimaiakka0 | 2nd Dec 20, 10:40am 1606858800

Not to Forget, RE industry has got the best RBNZ govrnor in Mr Orr who is all for rising house price and pulling out everthing to support the ponzi without taking any responsibility.

He has machine gun and can fire any number of shots and will not be held accountable for the mass murder as it is his job to fire to let economy run (more bullet you fire more the demand...) and not reponsible for mass murder.

Top it all, NZ has a PM who in trying to imitate and woo National party support base has gone..........When facing the media is she smililing or is it a smirk at average Kiwi ?

How can RE industry, not have the best monthe when Mr Orr and Mr Robertson wants as who is to challenge them... May be Karma... as it is a bitch

by alittle | 2nd Dec 20, 10:45am 1606859127

She is laughing at all those whom she has taken for a ride...

Challenging Do what you can... Can dare as side affect of democratic system, can do nothing for next three years. Sad but true.

by Clementé | 2nd Dec 20, 10:39am 1606858787

I sat outside one of the RE agencies in 3 lamps ponsonby the other week in my car waiting for someone and in the windows they have very large screens show-reeling what is on offer for sale... all fine and dandy, as woould be expected.
But a few slides in they have a chart of RE agents and how many sales they have produced and how this equates to $'s ... like a pop chart and how many places they had risen this month and the beautiful model-esc photos next to their names.
It was like they were treating them as popstars - I didn't know whether to laugh or cry.
I did make me smile though

by Quiet Desperation | 2nd Dec 20, 12:33pm 1606865591

Their 'meet the team' profiles are often hilariously horrible too.

by Cowpat | 2nd Dec 20, 10:45am 1606859121

All that can be said with certainty is that 2021 will see a flood of money being released globally, set against the strong likelihood of a weakening USD and a repeat of the 2002-2005 currency period. At the same time the cost of borrowing in NZD has never been lower. With available housing inventory low , particularly when referenced against sales, in both Auckland and New Zealand ex Auckland , prices should continue to climb unabated.

by Kate | 2nd Dec 20, 10:54am 1606859651

Which is why #rentcontrolnow.

by boreddad | 2nd Dec 20, 12:28pm 1606865291

#rentstrikenow

by Nifty1 | 2nd Dec 20, 10:49am 1606859368

You're doing a great service for our country Barfoot. You are the rockstars of the economy.

by mikekirk29 | 2nd Dec 20, 11:04am 1606860276

12m series to Nov 15 compared to that for 12m to Nov 17 shows a fall from 13,983 to 9,084 (- 35%)
From there to now, it has risen back up from 9084 to 11,364, or up 25%.

Important to bear in mind how much stock there is in different years.
There is much more now than in 2013.
But less of it is owner occupied, as ownership % has fallen, as shown in censuses.
Evidently, as sales speed has increased by about 50%, stuff is selling much faster than a year ago.
But what % of stock is selling? No one estimates it.
At present Auckland owner occupied stock is about 347,000 (1,650,000 divided by 2.8 per hh, with 59% OO)
They have sold 25,975 in last 12m.
That is 7.5%
Difficult to recalibrate but here is an estimate for 2013-14 (to November 14):

Pop Auckland 1,450,000 (200k lower)
Occupancy 2.8
OO % = 63%,
Gives you OO total of 326,205
Sales in that 12m block were 27,387
Which is a sales rate of 8.4%

Which to me indicates that sales rate (% of owner occupied stock sold pa) has fallen from 8.4% to 7.5%.
That is a drop of 10.7%.
This is a more considered metric which takes account of all factors.

by transactional | 2nd Dec 20, 11:05am 1606860332

So do think the good people at B&T will return their COVID payment of $4,066,630.20?

by J.C. | 2nd Dec 20, 11:14am 1606860897

They received a COVID payment? Why?

by b21 | 2nd Dec 20, 11:18am 1606861099

The fact that they would even ask for it in the first place is repugnant taking into account the amount of profit they had made during the previous years.

by Yvil | 2nd Dec 20, 12:01pm 1606863667

That sounds as if you don't like others doing well b21?

by b21 | 2nd Dec 20, 12:07pm 1606864060

It does not. Not sure what this has to do with my comment.

by Yvil | 2nd Dec 20, 12:13pm 1606864419

You say it is repugnant that they asked for the wage subsidy because they made a lot of profit during the previous year. That makes you sound like you do not like them doing well, can't you see that?

by b21 | 2nd Dec 20, 12:35pm 1606865749

Just you can see that apparently. It is perfectly fine them making a profit if it is in an hones way, something totally different is that after having done so they would ask for social welfare.

by RickStrauss | 3rd Dec 20, 3:00pm 1606960802

Nah.

More to the point, given we're subsidising the property industry so massively at the moment via government and reserve bank policy, you'd wonder why we also directly subsidise Barfoot. We're just creating awfully great welfare dependency.

by Patty2020 | 2nd Dec 20, 11:15am 1606860929

Government and reserve bank need to improve LVR to 50% for investors, and improve investors' interest rates. Otherwise, only a few people will own all the houses, and other people will just wait for HNZ to supply free accommodations. NOBODY wants to work hard to save deposits for a house because it is UNAFFORDABLE!!

by J.C. | 2nd Dec 20, 11:26am 1606861610

I think you will find that even in the top quintile of households, there will be more than a few with barely enough cash savings equivalent to a house deposit of $150-200K.

by Patty2020 | 2nd Dec 20, 12:08pm 1606864117

Yes, agree. So now investors are using equity to compete with FHB! If we raise LVR to 50% and improve investors' interest rates, the house market will be more friendly for FHB, and the price will be stable ! Recently I have seen so many investors are rushing into house market, because the bank estimated value for their current house has risen a lot, and is enough for them to pay 30% LVR. However, FHB is still struglling and has to bear the high rent! What a ridiculous society !!

by Patty2020 | 2nd Dec 20, 12:12pm 1606864339

Another ridiculous things is, we have high unemployment rate, and people are complaining that they are declined when applying for fruit pick jobs. But the government plan to give 2000 work visas to overseas workers!! I think after pushing up the house prices, they are just planning to push up the rent in NZ!!

by Zack Brando | 2nd Dec 20, 4:46pm 1606880779

Well obviously. Investors have to service their increased borrowing somehow - Trickle Down Debt yo'll

by RickStrauss | 3rd Dec 20, 3:07pm 1606961246

One fellow is claiming he submitted his application / CV multiple times but only received a response when he changed his name to a made up polynesian name.

Does seem like orchards are just another display of entitlement mentality at play - expecting handouts for business, property etc.while lambasting lazy Kiwis and "beneficiaries". https://www.nzherald.co.nz/nz/growers-criticised-for-poor-response-to-k…

by Tradersam | 2nd Dec 20, 11:18am 1606861090

It’s ironic that the RBNZ (Orr) is providing cheap loans to banks who will predominantly lend out as mortgages to keep the housing party going rather than lend to businesses to support a productive economy - they’ll only lend out for mortgages cause there’s little or no risk. Absolutely nuts!!

by Yvil | 2nd Dec 20, 11:48am 1606862927

It is a good time to be a real estate agent in Auckland

by youngdumbandbroke | 2nd Dec 20, 12:35pm 1606865754

Man imagine the commission the average agent has racked up in the past 12 months....

by mikekirk29 | 2nd Dec 20, 12:49pm 1606866595

"Average agent"
No such thing unfortunately.
There have been about 26,000 sales in Auckland in last 12m
About 17% more than in prev 12m
There are 6500 agents.
Of these, 20% take 60% of sales. So they will be doing v nicely thank you. (And remember they get about 55-65% of the sale commission, not all of it.)
Also, agent gets nil unless sells, and nil until it sells
That leaves 5200 Agents with 40% of the sales, or 10,400 between them, or 2 each pa.
Does not sound so good eh?
60% commission out of 3% for an Agency, on a $1m house, is $18,000 per house. So, for the agents sharing the remaining 40% of sales, their average income will be $36,000 before tax. So, good job most have spouses earning eh?

by youngdumbandbroke | 2nd Dec 20, 1:05pm 1606867500

So you're telling me they earn commission only? no base salary?

by mikekirk29 | 2nd Dec 20, 1:47pm 1606870077

Exactly

by youngdumbandbroke | 2nd Dec 20, 1:52pm 1606870344

How come there's so many then? are they managing rentals or something

by Nifty1 | 2nd Dec 20, 2:13pm 1606871615

They all buy into the agency's sales pitch that they could make hundreds of thousands per year.

by youngdumbandbroke | 2nd Dec 20, 2:21pm 1606872088

So they just stay in a job that earns minimum wage even when promised 100k+? Doesn't add up to me

by Nifty1 | 2nd Dec 20, 2:25pm 1606872340

Yeah, take a look at turn over - especially when market is flat.

by youngdumbandbroke | 2nd Dec 20, 3:14pm 1606875277

Im sure I read an article saying that REAs were on the skills shortage list

by Nifty1 | 2nd Dec 20, 4:40pm 1606880453

It takes a matter of weeks study to become a realestate agent. Probably a shortage of people who want to work on commission only...

by Ryu | 2nd Dec 20, 1:17pm 1606868256

I'm looking to sell my property in the UK and here are my fees quoted:

Cost and fees - there are estate agency fees, legal fees and potentially any tax liabilities which you might have to look into in terms of capital gains which is likely to be low to nothing. Our costs I can reduce from £1750 plus Vat to £1500 plus VAT (£1800 in total) and I would expect legal fees to be in the region of £600 or so. These fees can be settled on completion of the sale.

Taking a 2:1 exchange rate to fees would be NZD$3,600 equivalent to sell my property in the UK and another NZD$1,200 in legal fees. This is a flat fee by the way as the RE will be providing the same service regardless of the house price.

Anyone wanting to start a REaaS (Real Estate as a Service) venture would make a killing. Think Airbnb and Uber!

by Anon_82 | 2nd Dec 20, 3:19pm 1606875592

That's kind of proppy's offering - no physical "store fronts" etc, though they are still after a good size % (1.5) vs your UK example.

by eskyrider | 2nd Dec 20, 2:30pm 1606872627

Yippee

by VeryInterested | 2nd Dec 20, 2:49pm 1606873749

Woop Woop! Go New Zealand! https://twitter.com/jsblokland/status/1333860852466900994

by J.C. | 2nd Dec 20, 3:14pm 1606875253

Great chart, Thanks for posting. NZers love these kind of rankings that show us 'punching above our weight.'

by Crazy Horse | 2nd Dec 20, 5:38pm 1606883894

.....and on that chart look where Aussie is ........paying DOWN private debt ! ......while NZ (and Canada) are going wild, on a "debt feeding frenzy" !

Also look at how much private debt NZ has ......the biggest ratio on the whole chart !

NZ is truly a "one trick pony" ! ......time to sit back and watch this "Crazy" circus play out .....pass me the popcorn, as I watch the property "spruikers" do their thang !

by Independent_Observer | 2nd Dec 20, 3:09pm 1606874978

And the taxpayer pays $155,000 per day on motel accommodation for those who can’t make rent....apparently 4 times what it was 3-4 years ago. What an absolute cluster.

https://twitter.com/bernardchickey/status/1333950007582486528?s=21

by RickStrauss | 3rd Dec 20, 3:10pm 1606961401

We're constantly willing to subsidise property investment, seemingly. What a great rort.

by Independent_Observer | 2nd Dec 20, 3:12pm 1606875171

Nz Google searches for ‘how much can I borrow?’

https://twitter.com/sharon_zollner/status/1333947551687405568?s=21

Lets load up with debt people and take this housing market to infinity and beyond!

by Crazy Horse | 2nd Dec 20, 5:09pm 1606882143

A fantastic result B&T !! ......now who will buy my Auckland house for XXX BTC .....rather have it in a cryptocurrency, than a rapidly devaluing FIAT currency (what a rort that is !) .....as I have always said and always will, if you haven't got investment property and/or a holiday home, house prices going up are meaningless.....as the property you want to buy in the future, by selling your current property, would of gone up just as much and you are back to square 1.