Number of properties offered down slightly but sales rate up at Barfoot & Thompson's auctions

Property

Barfoot & Thompson's auction sales rates range from 67% for North Shore properties to 79% in Rodney

16th Mar 21, 11:45am by Greg Ninness

Barfoot & Thompson's weekly auction activity volume seems to be settling around the mid-200s after peaking in late February.

Auckland's biggest real estate agency handled 226 auction properties last week (March 6-12), down slightly from 235 the previous week, and well down from 318 the week before that.

It was the lowest number of auction properties the agency has handled in the last four weeks, however the sales rate at 72% was the highest it has been in the last four weeks.

Around the districts (apart from Northland where just two properties were auctioned), the sales rate was highest for properties in Rodney where it was 79%, and lowest on the North Shore at 67% (see table below).

Both the number of properties being auctioned by Barfoot & Thompson and the sales rates being achieved remain significantly higher than they were in the equivalent week of last year (March 7-13), when the agency auctioned 175 properties and the sales rate was 54%.

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

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38 Comments

by Davo3636 | 16th Mar 21, 12:02pm 1615849339

Not so long ago the auction clearance rates were around 30%, with 70% or so not selling. Now it's turned on it's head.

by tothepoint | 16th Mar 21, 1:08pm 1615853292

Two, three and four years ago the DGM were telling us that a property market crash was imminent......

Anybody who believed the DGM would now be devastated.

TTP

by Zachary Smith | 16th Mar 21, 1:26pm 1615854372

Three or four years ago they were saying, "Don't catch a falling knife!". They're still saying that.

by karl seastrand | 16th Mar 21, 6:52pm 1615873926

Zach..all anyone can be completely sure of is that we are 3 or 4 years closer

by Jay Lim | 16th Mar 21, 9:59pm 1615885180

One year ago, Bitcoin priced around 8,000 NZD, now It is over 77,000 NZD
Nobody can be sure what is going on. But value of cash is likely to go down.
Borrowing cash to buy properties, securities, bitcoin, or anything really is not a bad idea.

by CourtJester | 16th Mar 21, 1:38pm 1615855132

Why do you pretend that the crash was avoided because of market fundamentals? You know damn well that the people in power saw the potential for a crash hence did everything and more to prevent it, at all cost.

by karl seastrand | 16th Mar 21, 7:32pm 1615876361

CJ...I doubt it has been avoided. It has just been delayed and made much much worse when it does come. And to all those spruikers I bought quite an expensive house last year and my parents have rentals so I will lose more than most when it happens and am hoping it never comes but it pretty much has to. I cannot tell you when it is coming but I can tell you that it is.
In my view anybody who thinks the next 40 years will be anything like the last 40 for NZ property is failing to see what is right in front of them. The simplicity of looking at past results to predict future performance always comes with a warning for very good reason.

by dago | 17th Mar 21, 9:16am 1615925769

Likewise we have more to lose than gain of bubble explodes. But just wanting something to be true doesn't make it true (ie party will never end) . Otherwise we'd all be Jehovahs Witnesses door-knocking and waiting for Paradise on earth

by Crazy Horse | 16th Mar 21, 1:41pm 1615855262

...keep pumping TTP ! ....I would really like to see just how high these prices can actually go ??? ...just shows how greedy, narrow minded and self centered your ilk really are ......we are now the laughing stock of the western world with these prices, but as long as "I'm all right Jack" well, that's all that matters ....

by Shoreman | 16th Mar 21, 1:54pm 1615856065

Crazy horse - It's hardly TTP's fault the market has run away, he is stating a fact that many on here predicted a crash they were hoping for.
Clearly that was incorrect and to me was just wishful things on their part in the hope it would drop and they could buy into a lower priced market that other people had bought into and they too could benefit from.

by CourtJester | 16th Mar 21, 2:02pm 1615856538

Did any of you predict immediate removal of LVRs? Combined with the greatest money printing burst this world has ever seen. The sole reasons of this year's increases. If you predicted that, please provide a link to your comment - otherwise stop pretending that it was only natural that prices went up 20%+ in a year.
Even your friend TTP was claiming a short term fall - which did not eventuate. Oh but don't worry, just days before he claimed a possible maybe "some people are saying" bull rush, so I guess he was right! If someone makes a prediction of both X and the opposite of X in a matter of weeks I don't think they have any right to diss people for making incorrect predictions.

by Zachary Smith | 16th Mar 21, 2:17pm 1615857458

They were predicting a crash long before COVID. It has been consistent since I joined five years ago. It seems to me to be low interest rates that have caused the resent upsurge. One can still buy a two bedroom unit in Auckland and return about 4% which is better than the bank especially as your investment is likely to retain its value as well.

by Independent_Observer | 16th Mar 21, 2:24pm 1615857847

No downside risk in property at all then eh Zachary! Its to infinity and beyond and given there is no risk, why does property give any return? It breaks every rule of investing. Risk vs reward. In theory housing should now return the risk free rate given it has no risk - which based in current rates is more or less 0%. It shouldn't be anywhere near 4% if its risk free.

by Zachary Smith | 16th Mar 21, 2:32pm 1615858372

I know right, that's why it is currently a good opportunity. You have to think in terms of plenty, not imaginary worst case scenarios.

by Independent_Observer | 16th Mar 21, 3:00pm 1615860058

No that's why our financial markets are broken and our economy is fake.

by Zachary Smith | 16th Mar 21, 3:36pm 1615862172

The financial markets are not broken and our economy is not fake. We are living in a time of plenty.

Over the years commenting here you have probably dissuaded some people from partaking in that plenty. "Don't catch a falling knife!" Ooops, house prices just gone up 200k.

There is risk but if your reasons for buying are a house to live in or to generate an income stream the risk of not doing it may be greater.

by Independent_Observer | 16th Mar 21, 4:43pm 1615866236

Printing money isn't a sign of a healthy economy - its a sign of a near death economy.

by dago | 17th Mar 21, 9:18am 1615925898

ZS has zero clues

by Crazy Horse | 17th Mar 21, 9:06pm 1615968368

Shoreman .....as you have done very well out of property and are always "spot on" with your predictions and have ultimate foresight into all such matters, regarding residential property investment , where do you see, say Auckland prices in 5 years time (2026) ? .....honest question for you.

I look forward to your answer and thank you in advance.

by Shoreman | 18th Mar 21, 8:48am 1616010539

Crazy horse - No one is ever spot on but a calculated estimate can be close. Following the property cycle that some on here ignore bla bla the Auckland market should peak at the end of 2024. Between now and then further rises in the 25-35% would be my pick.

by Crazy Horse | 18th Mar 21, 10:33am 1616016813

Thank you for your answer Shoreman.

Having a sizable deposit for an investment property in NZ (and mortgage free home) I think I will carry on with my Cryptocurrency portfolio and keep building it up, as don't have to borrow the money - in fact I totally agree with you, as if cash is sitting in the bank, it is just being inflated away !

by Shoreman | 16th Mar 21, 1:46pm 1615855599

TTP - Exactly the likes of RP, unfortunately some people listened to him tossing on about crashing markets and putting your money into TD's, well RP how's that working for you now ?? Come on come out of hiding and face reality ??
The heightened market may well be past it's peak that Mikem eludes to but this market has a long way to run yet at a slower pace.
Right or wrong, like it or not, it is what it is, so be in to win or moan and groan and make idle treats against the market that it's not fear and you're going to run away to greener pastures if the market doesn't come to it's senses !

by Independent_Observer | 16th Mar 21, 2:16pm 1615857394

How much in untaxed capital gains have you made the last 12 months Shoreman - did I see you say $1.5 million?

by Lord Dowding | 16th Mar 21, 3:52pm 1615863135

Yes I remember Retired Poppy et al. I listened but then the market started to take off so I pulled the trigger and glad I did.

by karl seastrand | 16th Mar 21, 7:57pm 1615877857

Shoreman..have you ever wondered why competent risk analysts are all so much less certain and less confident about the future than you are. Either you have predictive gifts that nobody else possesses or you are far too confident in your ability to accurately forecast the future.

by Independent_Observer | 17th Mar 21, 10:47am 1615931262

From memory Shoreman owns over $10 million in property so of course prices are going to keep going up. A PR machine for his own investments.

by Shoreman | 17th Mar 21, 11:28am 1615933702

KS IO B21 - The Auckland market was due to start it's up cycle in 2020, so with Covid/low interest rates it has had a extra boost. Cycles are very reliable 9 yearly look over Auckland movements for the last 40 years.
All you people think the world has ended with this jump in prices, it has happened to this level many times before and it will happen again.
Getting started is tough it always has been but being a victim to it is foolish and will not serve you well.
Life does not care about you or me, put your energy into how you can boost your current situation, borders are closed by not forever, I worked my arse off overseas to get a good deposit.
Yes I have a paper gain of $1.5 -$1.8 mil in the last 12 months only because of the size of my footprint in the market.
Blaming Jacinta, Orr, Robertson or the next door neighbour is pointless.
Get yourself a Tony Alexander Premium subscription and read what he has to say. I've followed him for 25 years he's good.
I wish you well.

by CourtJester | 17th Mar 21, 11:49am 1615934989

"Getting started is tough it always has been but being a victim to it is foolish and will not serve you well." - absolute, 100% pure bullshit.

by Shoreman | 17th Mar 21, 6:49pm 1615960196

Cj - I rest my case just listen to your anger or is it envy ? I wish you well in your future.

by Independent_Observer | 17th Mar 21, 11:55am 1615935313

I prefer to look over 100+ years to avoid any recency bias. And 100+ years would say that last 20 years is a massive departure from what is normal and sustainable.

by karl seastrand | 17th Mar 21, 12:39pm 1615937947

Shoreman... so you are mainly basing your investment strategy om exactly four 9 year cycles? Do you know how silly that sounds? Tony Alexander is one of the most ignorant hedgehog economists on the planet. I have read a ton of his stuff since the 80s when I seem to remember he was a DGM that regularly said renting was better than owning

by b21 | 17th Mar 21, 1:04pm 1615939486

Typical neoliberal boilerplate narrative, individualism taken to the extreme. We are not in the 80's anymore, this is total nonsense.

FYI, TA was a guy who in a public conference offered discount on mortgage rates to all attendees, sounds sensible doesn't it? It is not hard to find on Youtube.

by b21 | 16th Mar 21, 3:05pm 1615860335

Everyone is devastated by your utter lack of empathy mate.

Three years ago many were trying to get 20% for a deposit and they kept struggling to get it ever since due to a housing hyperinflation which is destroying this country. If being right makes you happy you need urgent professional help.

It would be honest of you to share where your income comes from.

by mikekirk29 | 16th Mar 21, 1:25pm 1615854308

318 to 226 in two weeks: 28% drop off. And March is supposed to be a peak month.
Yes, of course it is substantially better than a year ago.
However, the slowing rate of increase clearly now in evidence.
Auckland 12 month running sales rate remains 30% above a years earlier but its accelerating has ceased - that is, for 4 months up to xmas the increase was 5% pcm. In Jan, Feb it was nil, YoY.
This shows the mania is over and lack of listings is slowing the market in many suburbs.
NSC substantially ahead of other areas, sales wise but other areas of Auckland are now not reaching list prices, despite being above CV by a long way.

by stuart786786 | 16th Mar 21, 1:56pm 1615856184

This ponzi will continue as supported by Jacinda Arden and she is the very person who begged votes to solve the crisis.

Has anyone seen her recently except coming in safe zone for corona virus announcement.

How long can such people hide, even snakes have to come out and cannot hide forever.

by alittle | 16th Mar 21, 2:04pm 1615856687

Thank your prime minister without her action or should say inaction, would not be possible to achieve.

https://www.newshub.co.nz/home/money/2021/03/housing-crisis-record-prof…

Wonder what her views are on rising house price in thousands on a daily basis being fully aware that it will continue unless speculation is controlled.

Blessing from speculators and curse from average Kiwi and FHB.

by AJ123 | 16th Mar 21, 3:16pm 1615860982

Property will not fall because we have spineless leadership who believe in wealth creation by selling same thing (houses) among kwis to each other. They are brain dead to think anything other than property.

by Nzdan | 16th Mar 21, 8:46pm 1615880794

What if Kainga Ora is helping with the clearance rates?

https://www.nzherald.co.nz/nz/kiwis-cant-outbid-kainga-ora-government-grilled-over-750-million-house-buying-bill/