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Barfoot & Thompson's auction numbers may have peaked at the end of February

Barfoot & Thompson's auction numbers may have peaked at the end of February

Barfoot & Thompson started what is usually the busiest month of the year for residential real estate sales, with some interesting auction numbers.

The agency handled 235 auction properties in the first week of March (February 27 - March 5), which was down from 318 the previous week but up from the 195 properties it auctioned in the equivalent week (February 29 - March 6) of last year.

Sales were achieved on exactly two thirds of the properties last week, up slightly from the 64% sales rate the previous week and significantly ahead of the 56% sales rate in the equivalent week of 2020.

Across the Auckland region, Barfoot's auction sales rates ranged from 52% for North Shore properties to 88% for Franklin properties (see the table below for the full district breakdown).

With just slightly more than 200 properties on the Orders of Sale for this week's auctions, it appears that Barfoot's auction numbers may have peaked at the beginning of February this year, rather than in March, although they remain well ahead of where they were a year ago.

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43 Comments

Almost as if the specufestors got all jacked up on stimulus and now are having difficulty keeping it up.

It's just mad. I knew things had got hot, but a quick scroll through the recent auction results around me... absolutely bonkers.

Yes, these prices aren't the nail in the coffin for FHB...they are the crematorium fires for their home buying dreams.

Not just FHB but those looking to upgrade, too. The gap to that bigger house just keeps getting bigger...

Who's buying these homes? Northshore 1-1.1mil homes are now going for 1.4mil+

Mainly investors, the 1.5m house comes back on the rental market for 35k PA.

Not investors at that rate of return. Specufestors.

Still not getting over your anger? Anger doesn't help you, it doesn't make you see things clearly, also others don't really like angry people

Why are you trying to wind him up then? Bit juvenile.

That's some low IQ trolling there. About as low IQ as calling a 2.2% gross rate of return an "investment".

Agreed yvil

The free market dictates housing right? Banks creating credit is free market. I've got a concept for you... Let the free market decide the price of money? Strange that the free market offers people different priced cloths and consumer items and cars.. But housing? But hey its the free market right?

Not a sound investment though, doubt they will get anything close to the returns they might expect without an equivalent increase in household incomes.

Double helix
RBNZ mortgage data doesn’t back you up. About 83% of new mortgages go to OO including FHB - about 17% to investors.

Genuine question: If I own my house outright, and I decide to draw down 60% of that equity to buy an investment property with my own home as security, does the RBNZ class that as OO lending or investor lending?

Still phenomenal auction results though. One would have to concede that, surely?

Absolutely phenomenal. Grant Robertson and Adrian Orr should be consulting at Rocket Lab, they have sent house prices into orbit.

..... And Mr Robertson is silent..... was suppose to announce some measures but delayed....

Delayed announcement because they are just waiting for it to slow down by itself and then they can announce they did something that influenced that. Then again push the announcement out a couple of months and for one its heading into winter so it slows down anyway and two the labour voters have such short term memories it will be all forgotten about that there was to be an announcement on housing anyway. Lets get back to focusing on that bad bad Covid.

good finally cooling down....

Adrian "hold my beer" Orr enters the chat

Adrian "house prices are due to supply issues, not monetary policy, wink wink nudge nudge" Orr

Interest rates are as low if not lower in other western markets yet prices are nowhere near as high vs incomes... they're both important. Keep your head.

They are both important, but the supply/demand balance improved in the last 12 months, prices up +-20%.

Orr blaming supply issues is a joke.

edw
Yes; as an early indicatory it seems to be possibly looking that way. QV showed also some slowing of rates as well in some regions.
It will be interesting to see data over the next month; March was the Auckland peak back in 2017. Come winter my money is on a cooling market - with some possible dip - and the spring season not as bouyant as in previous years.

Agree on your assessment. I feel lending has been tightened and with bond yields rising, there may be some caution.

sure is

https://tradingeconomics.com/new-zealand/government-bond-yield

the trend on the yield is stark

There is a lot on inflation happening outside of CPI and you can expect the yield to continue to rise, RBNZ will load up to their full complement of 60% of issued bonds, but unlikely to stop the yield increasing if the open market has decided to sell off at current yields

I think Covid bounce back is over. Unfortunately this will also happen to business and local tourism. We could be in for a tough year on all fronts.

Current house prices bordering on dumb but unfortunately supply/demand issue. I think the demand side is fading and with new LVR (still to play out) could be a further dampener.

Taxinda and her crew really need to come up with a plan for recovery. trans-tasman border has been talked about for a long time. We really need them for the tourism industry, more than they need us. In the absence of this, we will have a lot more tourism businesses going under.

I read mid last year you were going to buy ... did you?

Stock market falling despite massive 1.9 Trillion Dollar stimulus in US.

Is it that all manipulatuon and support will only go this much and No More.

Will economy takes its own course though Reserve bank and Government will go all out as it is their reputation which is at stake.

So should be wait and watch as not always buy on dip may work.

Will also be interesting to see what affect LVR has on housing market along with any measure that Mr Robinson is to announce next week (which was supposed to be announced in February), along with end of mortage defferal.

Interesting time ahead.

Auckland housing market as of now is still hot though not boiling but is it a sign of things to come as does not take much time for sentiments to change.

"Stock market falling despite massive 1.9 Trillion Dollar stimulus in US" that happened because of the bonds market , which is greater beast. even Fed can potentially be looking like a little boy compared to that . So correction might continue , depending on what the Bond market will say

Given Auckland was at Level 3 , is it possible that some auctions were /are being deferred for any number of reasons, while appreciating the availability of the online platform . Any comparisons to last year will soon become redundant.

Normally - North shore properties are first to rise or fall - lead Auckland housing market.

I believe a lot of new listings are going to hit the market this week in Auckland, especially in the greater Ponsonby area

Wouldn't surprise me, listings held back during the lockdowns but ready to go before the summer season is totally gone.

That's great Yvil ...ya gotta keep the "Property Ponzi Party" going ...at all "costs" ....btw do you know anything about the international bond market ? ......rising interest rates are on the way .....lock it in for as long as ya can ...and all the very best of luck mate ! .... ps thanks for wrecking the NZ economy, for the sake of a handful of people.

RE NZ 15.3.20: Auckland houses and townhouses listed: 5766. Today it is 4980. On 1st January it was 7582.

Rodney a year ago was 829 on houses and townhouses. Today it is 538.
The big 7 suburbs of Hibiscus Coast a year ago was 364
Today it is 312

Price rises and sales are extremely dependent on exact area of Auckland focussed on.

Auction numbers are no longer a reliable indicator due to frequent sporadic lock downs and restrictions across the country.

Great fortunes are made in these times of volatility- you seldom find a trophy fish in calm seas.

Act now!

If you look at history you'll also note that large parts of the population get wiped out financially during times of volatility - especially when asset prices are already at historical highs against any form of indicator.

Fortunes are made by getting in early and leaving on time. Not by getting in late.

CWBW...or more applicable to you CWBW. You seldom find a trophy wife in the WINZ reception area.

The gossiping PR media level between GR & Mr. Orr is enough to spook the newbie investor tingly nerves. The pro. sit tight, networked deeply with the banks, govt, rbnz, insurance etc.
Remember: Mr. Orr already stated, he'll do whatever means within RBNZ power to maintain.. what essentially 'NZ (F.I.RE) economy'. Almost all NZ Economic academia & law professor agree with this. But yea, what do NZ expect? choosing their leaders.... with only two PhDs among them, one is in Geography.
At least compare to National, Lab/JA willing to listen to Ashley Bloomfield.. in micro, macro, short-long term economic management? - they all become old and wise knowledgeable owls, self taught, no need for any multiple external input whatsoever.

LVR on/off is just a PR exercise, imagine response to any kind of disasters the first thing to count is the $ cost. Expect more magical stimulus to subsidy corporation profit, tourism towns profit, wages/salary increases to balance the increase of rents, and supply more tax subsidy for investors. FLP will be increased and funneled more into more 'supply' - here's the final govt wishful target/aim: To provide enough supply of land+houses for every Kiwis, but maintain the Bank subsidy for the value of all those average house pricing, ideal at 3-4mil/house

Peaked in February eh? Now, who would have thought it
Inflation concerns also arose in February, mhmm...
Retail sales dropping
Listings not picking up as normal for summer...
Sales drop Dec-Jan 50% more than usual.
Course, its not slowing you understand.
The turn is in