Winter biting into Barfoot & Thompson's auction numbers but the sales rate is holding up

Property

Barfoot & Thompson auction numbers now half what they were over the peak summer months

28th Jun 21, 11:01am by Greg Ninness

Activity in Barfoot & Thompson's auction rooms is down by more than half compared to where it was in the peak summer months, but the sales rate continues to hold.

Auckland's biggest real estate agency auctioned 150 residential properties in the week from 19-25 June, down from 165 the previous week and less than half the 300-plus properties a week that were common over the summer peak.

Sales were achieved on 90 of the properties last week, giving an overall sales rate of 60%, down slightly from 65% the previous week.

Around the Auckland region around half of the properties on the North Shore and in Waitakere and Manukau were sold, with two thirds selling in Rodney and Central Auckland, (see the table below for the full district breakdown).

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

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43 Comments

by donny11 | 28th Jun 21, 11:12am 1624835568

Anyone else think we could find ourselves with an over supply of houses? With zero immigration who is going to live in all these houses they are currently building. In Auckland they are going up every where.

If the CPI kicks up which forces the RBNZ raises interest rates & we suddenly have an oversupply of houses. Maybe we will get the crash that has been talked about for many a year on this sub.

by General Comment | 28th Jun 21, 11:23am 1624836196

"With zero immigration who is going to live in all these houses they are currently building." - Probably the people living in motels, cars, in shelters, and under bridges. All they need to do is put down the avo toast, work harder, and save that lazy $200K for the deposit.

by rastus1 | 28th Jun 21, 12:12pm 1624839138

They will manipulate the CPI so it never rises and we already have massive inflation.

In 2000, $100k invested gave you interest income of $6,500.

In 2021 $100k will give you $820. ie your $820 purchase will now cost you $6,500.

You need $792,680 invested to return $6,500 in interest income.

If you only have savings based on labor and hold cash but no other assets then you are being shafted by the bankers.

Why is inflation not considered in such terms?

by Squishy | 28th Jun 21, 12:20pm 1624839634

The low immigration numbers will normalise once the border reopens.

Government and, by extension, RBNZ?
"In truth, laws are always useful to those with possessions and harmful to those who have nothing..."
- Jean-Jacques Rousseau, The Social Contract (1762.)

by colinchch | 28th Jun 21, 12:47pm 1624841231

Anyone else think we could find ourselves with an over supply of houses? Cameron Bagrie does.
www.newshub.co.nz/home/money/2021/06/economist-cameron-bagrie-predicts-…

by tothepoint | 28th Jun 21, 1:33pm 1624844002

The seasonal impact on house listings is real enough.

But, like it or not, a fall in listings (and sales volumes) does not imply that house prices will tumble.

TTP

by b21 | 28th Jun 21, 12:27pm 1624840077

Question is whether this season is winter or the downturn due to a turning point in interest rates, tax deduct ability changes and other real world changes who some people an mainstream media keep pretending not to have any effect.

by MortgageBelt | 28th Jun 21, 12:16pm 1624839363

Grammar helps comprehension

by b21 | 28th Jun 21, 12:28pm 1624840109

Care to explain or is this just targeted harassment?

by Brock Landers | 28th Jun 21, 11:40am 1624837212

I went to a few open homes over the weekend and almost every one was a ghost town.

Some of the agents looked a bit sheepish and guilty when the missus and I burst into laughter at their guide prices.

by northman46 | 28th Jun 21, 11:50am 1624837831

Auckland?

by Brock Landers | 28th Jun 21, 11:51am 1624837868

West Auckland.

by Averageman | 28th Jun 21, 11:55am 1624838149

Debt holders are trying to cash out at ever ridiculous (to the NZ economy) prices. Haha indeed. The only thing keeping the con going is the OCR. With a tsunami of inflation approaching options are to destroy everyone with savings, or raise interest rates and expose the greatest financial bubble ever.

Looks like we about to find ourselves up a creek without an Orr...?

by Zachary Smith | 28th Jun 21, 12:23pm 1624839809

With a tsunami of inflation approaching you might want to hold onto property?

by Rob Reid | 28th Jun 21, 9:47pm 1624873676

I actually know what will happen. Based on decades of experience, Govt policy always happens to work against me. So it will be parabolic currency devaluation.
I really need to work out what to blow my meagre savings on before it's worth a tube of toothpaste.

by printer8 | 28th Jun 21, 12:19pm 1624839540

Brock
"I burst into laughter at their guide prices"
There goes a naive mistake.
Of course they are going to talk the price up . . . simply accept it with a poker face. Its just the opening shot in negotiation and they are not going to talk the price down before that starts . . . you bargained in India or Bangkok?
However your real mistake is that whether you like REA or not, if you are serious then get on side with them and have them working for you. REA need buyers.
The advantage of "befriending" agents is that they will know that you are serious and what you want . . . as soon as something comes on to the market they contact those on their list. First in with an offer is ahead of the rest of the pack . . . talk to any experienced investor and flippers and they have agents onside for that simple reason.
By the way, a reason successful REA bother with the effort in running with open homes is making contact with serious buyers and adding to them their list. If an agent pesters you with unsuitable homes then tell them firmly and clearly as to both what you wants are and your price range . . . they are not going to bother wasting their family time.
You really need to ask yourself as to what you gained by laughing at the price . . . it achieved nothing other than a feel good on your part but actually worked against you.
If you are serious, be smart.

by frazz | 28th Jun 21, 12:30pm 1624840258

"The advantage of "befriending" agents is that they will know that you are serious and what you want" seriously should they not be doing that as a professional or do we need to give make them friends first.

Nah treat REA agents what they are - sharks and bottom feeders.

by printer8 | 28th Jun 21, 1:35pm 1624844126

frazz
"Nah treat REA agents what they are - sharks and bottom feeders".
What advantage is there in that?
In doing business whether one actually likes a person or not is unimportant and one can think what one likes. However, treating people as rubbish is counter to achieving one's objective as it is usually at your cost.
Yes, of course I recognise that they have a spin as any salesman does and everything said should be taken with a grain of salt.

by frazz | 28th Jun 21, 1:26pm 1624843578

They are only working for the seller (aka their commission)..to say otherwise is rubbish.

by printer8 | 28th Jun 21, 2:25pm 1624847143

. . . and without a buyer they haven’t got a sale and they don’t get a commission.
So yes, they they are definitely working for the buyer also.
. . . and they won’t want to lose a serious buyer to a sale to another agent.
Yes they will never be a friend but make sure your prejudices don’t cost you.

by b21 | 28th Jun 21, 2:11pm 1624846305

Exactly, whoever thinks the opposite they are delusional. You will pretty much never get an agent negotiate a price down for you as a buyer.

by printer8 | 28th Jun 21, 2:31pm 1624847508

b21
You are joking.
Where there is a difference between sellers expectation and buyers offer of course they will negotiate the seller down. Happens every sale and especially visible at auction when the reserve is not met.
You also need to look at some sales and purchase agreements where there are a series of counter offers.

by Brock Landers | 28th Jun 21, 1:43pm 1624844601

Thank you for your advice printer8. I'm sure you mean to be well intentioned. I have indeed bargained in India and Bangkok and plenty of laughter was had when they were being patently absurd too.

It was interesting to see first hand what you get for your money here, however how much money I have to spend is none of their business. What I gained was knowledge to help us make an informed decision about relocating back overseas.

by printer8 | 28th Jun 21, 1:46pm 1624844790

Brock
Best of wishes.
Good to see you making an informed decision best for you.

by sam-s | 28th Jun 21, 3:01pm 1624849296

Still busy down here in Christchurch

by EarlyRiser | 28th Jun 21, 3:12pm 1624849957

We went to an open home at the end of our street this weekend and the agents' estimate of what the property would go for was 100K less than the likes of Homes and OneRoof's estimates. They also admitted a couple of recent sales in the neighbourhood had come off the recent highs of recent months. This is in Napier, not Auckland.

by printer8 | 28th Jun 21, 3:53pm 1624852400

EarlyRiser
Agreed.
After a period of incredible increases it seems that the HB market is cooling and I would not be surprised to see some fall during the winter period.
However I don’t see a significant correction in HB.
An acquaintance just let a rental in the past week or so to an Auckland potential FHB couple who have moved down with an eye to buying here and others shared knowing of the same. I understand that the hospital and schools in particular are attracting new staff from Auckland and Wellington.
Similarly from same group of property investors, comments are that rental yields are still comparatively good compared to other regions and with 1700 in motel accommodation so demand is good; the Government’s March announcements are not deterring them. (Coincidentally, Tony Alexander put out his survey results from investors and their intentions are pretty neutral between buying and selling.)

by Luke83 | 28th Jun 21, 6:11pm 1624860702

Weird still 53% sold out there last week. Sales rates are good for winter, prices are good.

by Luke83 | 28th Jun 21, 12:25pm 1624839931

Headline should read, Winter sales rate continues as every other year, and fyi you made another 10k last week

by iconoclast | 28th Jun 21, 5:45pm 1624859105

Trawl though the auction results
Surprised at the number selling below or close to July 2017 RV
Good quality still holding premium
Solid number in Massey passed in
1917 run down Villa in Birkdale on 680 sqm sold for $1,500,000 - LAND VALUE

by stuart786786 | 28th Jun 21, 12:58pm 1624841882

Market is as strong as before and will continue to be, till all FHB are burried under by borrowing in extreme under FOMO.

It is not an economic issue but a social issue and Jacinda Arden has failed miserably but does she cares.... Became PM of NZ for two terms and is too much for her as before could not have dreamt of so much power and money....now who cares.

by CWBW | 28th Jun 21, 1:33pm 1624843981

Looks like the housing market is well and healthy despite some AstroTurfs trying to infect it with their DGM virus.

by jerry_NZ | 28th Jun 21, 1:42pm 1624844565

I guess it all comes to the particular property now. If it is a good house, good area, good section - it will still sell at a premium. Average , poor homes may back off a bit.
There is still plenty of people returning from overseas with money. And they will pay. After selling apartment in London for million pounds 2 million house in Auckland is 'affordable'.
Inflation is HUGE. $5 for a cucumber !!!

by Brock Landers | 28th Jun 21, 1:55pm 1624845303

The problem with this fantasy is that Auckland is not London. It's Auckland. There are very few apartments in London that would sell for a million pounds (only Prime Central London), and even fewer of them are inhabited by kiwis, and even fewer of them kiwis that want to come back here.

by tothepoint | 28th Jun 21, 2:02pm 1624845738

Hi Brock,

Who wants to live in London?

Right now, heaps of people are trying to leave London and find an abode in Auckland.

TTP

by Brock Landers | 28th Jun 21, 2:28pm 1624847295

Hi Tim,

It may come as a suprise for you to learn that around ten million people live in London and around 25 million within commutable distance. It's an absolutely incredible place to live and work and nobody in their right mind is leaving there at the peak of summer to come here. With such tremendous results from their world leading vaccination program, by all accounts the nightlife and the job market are going crazy right now.

by tothepoint | 28th Jun 21, 9:22pm 1624872136

You're badly misinformed, Broke Landers.

London is not even approaching herd immunity. It's far from being out of the woods - with the casualty rate remaining an indictment on London's public health response.

TTP

by Brock Landers | 29th Jun 21, 8:55am 1624913707

No, you're just plain wrong Tim.

Over 67% of the UK is now vaccinated. A lot more people have natural immunity (including myself it happens). The UK will be entirely free of ANY covid restrictions on July 19th. Very few people are now contracting it and almost nobody now ending up in hospital.

I know the news tends to reach Palmerston North slowly on the telegraph, but surely an expert price fixer should have some sort of clue about current events.

by b21 | 28th Jun 21, 2:47pm 1624848466

Don't let your dreams get in the way of reality.

"A quarter of arrivals to New Zealand in the five months to January 2021 planned to return overseas if the COVID-19 situation improved, according to a Ministry of Business, Innovation and Employment (MBIE) survey."

https://www.interest.co.nz/news/111002/nearly-80-returnees-new-zealand-…

https://covid19.govt.nz/assets/resources/fact-sheets/COVID-19-MBIE-Surv…

by 46and2 | 28th Jun 21, 9:20pm 1624872022

Check out 777 Riddell Road, Glendowie for an unreal result: Sold For: $2,338,000 Rating Value: $1,320,000 (July '17). Modest 50s house https://www.barfoot.co.nz/property/residential/auckland-city/glendowie/….

by Crazy Horse | 29th Jun 21, 9:02am 1624914127

.....meanwhile in Manhattan for slightly less than 2.33 mil NZD converted to USD you get this ..
https://www.zillow.com/homedetails/370-E-76th-St-APT-C1002-New-York-NY-…

by Brock Landers | 29th Jun 21, 10:44am 1624920278

But Glendowie is a FAAAAAR better place to be than Manhatten. Or so the clowns here would have you believe.

by Crazy Horse | 29th Jun 21, 12:36pm 1624926973

Absolutely BL .....but don't let facts get in the way of a good TTP et al story ! ....their dogma of "nothing will affect NZ property prices" and "the only way is up" is just their own "vested interests" at play - they have a wheelbarrow to push and that is that prices have to keep increasing, as they are relying on the "greater fool" theory, where someone comes along later and pays MUCH MORE than they paid for it ! .....GOTTA KEEP THE NZ PPP ( PONZI PROPERTY PARTY) GOING ! ...."AT ALL COSTS"........ that in the end "costs all".