All of the talk about potential rises in mortgage interest rates does not appear to be having much, if any, effect on activity in Barfoot & Thompson's auction rooms.
The agency sold 101 residential properties at auction in the week of 7-13 August, down just slightly from 106 the previous week.
The overall sales rate also declined marginally to 62% from 69% the previous week.
The sales rate has hovered around the two thirds mark for most of winter.
Around the Auckland districts the sales rates ranged from 54% in Manukau to 68% in Franklin.
The table below gives the district-by-district auction sales 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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13 Comments
It's likely that interest rates have less impact on the housing market than many people here believe.
Property purchase decisions are frequently made in the context of a long-term horizon - so current interest rates, while important, aren't necessarily a critical factor in decision-making.
TTP
I don't agree, the RBNZ has the ability to kill the property market dead, however going by most people on here and probably in the auction rooms they figure the RBNZ doesn't have the balls to even raise the rate 25 points. Even if the OCR goes back to 1% right now the property market will just keep on trucking.
You keep displaying a total lack of understanding of basic economic concepts and human psychology (or ignore them to justify ever growing house prices). Good to see nothing changes around here, please never give up.
https://www.youtube.com/watch?v=eHH6CZo1JnA
True TTP this NZ residential property market is not going to stop until something from overseas comes into play ....so in that regard, look at the link to what the richest country in the world is thinking, if they were to raise their interest rates ?
great vid.
I agree regarding NZ property.
I still think on balance they will all print until currency collapse, and only fiddly little rate increases at most to avoid debt default.
Strategic positioning. The coming season is getting exciting.
Indeed, the warmer weather is not far away and I can see my nest egg growing!
And why should anyone worry about the OCR? Any rises are going to be small and gradual, and if you buy now you can lock in at a decent rate.
And once the inevitable economic hard times arrive the OCR will be cut down again.
Prices are increasing 10k a week where I am. Minor increases will do nothing to stop it.
When prices look to be dropping, the OCR will be cut down, as you say, totally agree.
The government knows where the voters are.
Sheep have a habit of following the flock no matter where they are heading.
Your better off being a Sheep home owner than a Lemming that is renting because we all already know where they are heading.
https://www.newshub.co.nz/home/money/2021/08/bank-makes-prediction-for-…
"But Westpac forecasts the declines won't come until 2023, and won't be anywhere near large enough to make up for the rapid price inflation of the last 18 months."
SO agreeing that unless and untill government and rbnz really go after demand specially speculative demand, it will not help as now the price rise is officially 30% and if they say nothing happening till 2023 than by that time will be another 20% to 40% on tp of 30% - HOW DOES IT HELP EVEN IF IT FALLS IN 2023 by FEW PERCENTAGE and it is this news that are been feed on a daily basis that adds to FOMO, which is only high as ow the aim of any non home owner is to get into a house...luckily not allow to sell their kidney in NZ or would have done that under FOMO for their family.
"A lot of the 30 percent rise in house prices we saw over the last year was really about those record-low mortgage rates… the shortage of housing was a factor, but that's not something that suddenly came on in the last year. It was very much about the low borrowing cost side of the equation"
HAPPY REALIZATION THAT IT IS NOT JUST SUPPLY ISSUE BUT DEMAND BOOSTED BY RNMZ ACTION OF LOW INTEREST and NOT TO FORGET REMOVING LVR, WHICH WHEN KNEW THAT INTEREST WILL BE REDUCED TO NEAR ZERO SHOULD HAVE LEFT LVR UNTOUCHED BUT THEY WENT FULLY AWARE THAT ZERO INTEREST RATE AND NO LVR WILL BOOST HOUSE DEMAND AS NEVER SEEN BEFORE.
Question is now what ?
When know that now even if interest rise by few percentage will not have desired effect, why are they not targeting investor with higher LVR than current, why focus only on interest rate and ignoring LVR that was headline last week (Though are not targetting investor but FHB - Whom are they trying to help) and what about DTI, had read and tttaly agree that DTI is must specially for FHB from borrowing in extreme - has seen FHB borrowed as much as 8 times and even 9 times (Check with good finance broker and will legally manipulate) and they say 5 time DTI is high. Even if they do 7 times will not be as high as currently many in Auckland are opting by any means.
Question: After creaming all that commission will Barfoots be first in line again for more Covid subsidy?
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