There was a big decline in the number of properties auctioned by Barfoot & Thompson last week as Level 4 lockdown restrictions started to bite.
The real estate agency took 64 residential properties to auction last week (28 August to 3 September), down from 105 the previous week.
However what was on offer received an enthusiastic reception from potential buyers with more than three quarters (77%) of the properties offered selling under the hammer.
Sales were achieved on 100% of the properties offered in four districts - Rodney, Waitakere, Papakura and Franklin, and the lowest sales rate was for Manukau properties at 58% (see the table below for the full district breakdown).
The big decline in auction activity last week should not have been a surprise because the biggest handbrake on the market during the lockdown is the inability to conduct open homes.
Although much can be achieved via online auctions and virtual tours of properties, many potential buyers will still want to inspect a property in person and may also want to commission a building inspection report.
The inability to do so will see many potential buyers holding back and the resulting reduction in the buyer pool is likely to reduce new listings, as potential vendors postpone putting their properties on the market.
So the number of properties coming to auction could decline further over the next couple of weeks.
However that is creating a backlog of new listings and potential buyers, which means auctions and general real estate activity could spring back to life with considerable vitality once restrictions are eased enough for open homes to resume.
The comment stream on this story is now closed.
| Barfoot & Thompson Residential Auction Results | |||||
| 28 August - 3 September 2021 | |||||
| District | Sold | Not Sold | Total | % Sold | |
| Rodney | 2 | 0 | 2 | 100% | |
| North Shore | 6 | 2 | 8 | 75% | |
| Waitakere | 8 | 0 | 8 | 100% | |
| Central suburbs | 11 | 3 | 14 | 79% | |
| Manukau | 14 | 10 | 24 | 58% | |
| Papakura | 3 | 0 | 3 | 100% | |
| Franklin | 5 | 0 | 5 | 100% | |
| Total | 49 | 15 | 64 | 77% | |
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14 Comments
More demand so the ponzi continues.
Trickling supply and pent up demand.
Making a fortune doesn't have to be hard.
Be quick.
Spoken like a "true" real estate agent ........"goodonya mate" !
"Barfoot & Thompson's total auction numbers dropped sharply last week but the sales rate shot up to 77%Barfoot & Thompson's total auction numbers dropped sharply last week but the sales rate shot up to 77%"
Headline should be Sales Rate Shot Up by 77% though number of house offered for sale declined as expected under Lockdown.
No more to say. Half full or half empty ......though same meaning.
But wait a second, the price increases isn't because of supply issues. I thought it was because of foreign buyers, record low interest rates, investor buyers......
That's all I read on the comment sections? So surely low supply of houses isn't the issue.
You are correct supply is not the only reason and definitely not the reason for 50% rise in a year.
No that's not all you read unless you skipped a large number of posts.
You should also have read the opinions that the price is totally dependant on the supply of money from the overly willing to lend banking system. That's the supply and demand part that really matters.
All of those things have played a part now and previously. Or don't you believe that is the case?
Don't forget that interest rates at critical life support levels just to protect one thing...bank debt/profit. That in is turn driving hyperinflation in NZ (awesome work -sarc) and people cleaning out their savings into inflation hedges like property. If rates were 5-6%, or higher, I would suggest things things would be very different.
Its all a safe "safe as houses" Jenga technique until the next Lehman like event exposes the naked fat hairy butt of global debtors. Then the margin calls on speculative lending start. We will be fine though, because prudent lending would always requires asset income to support the levels of leverage. Clearly no Sovereign Government in its right mind would support speculative gambling within the debt lending practices of banking sector....would it?
Hows the $300B, yes B as in Billion, of debt in Evergrande in China looking these days. Cough cough "imminent default".
And the banks just keep "laughing all the way to the bank" ...they're trying every trick on the book ....they just have to keep this whole PPP going, as once they can't "milk" anymore from the cash cow proletariat by increasing their mortgage books, they will just slowly increase the interest rates ..... keep the cash flow rolling in .....suck the life out of the economy ......except for housing.....one trick "pony" all right ......."neeeeeeeighhhhh" to that says the Crazy Horse !
Have you seen the margin between 90 day bill and the floating mortgage rate
Yep......your floating mortgage rate around 4.45% and the 90 day bill rate 0.52% .....so let's say a 3.93% return on ya moolah .....whose winning .....nuff said.
So will there now be a surge of sales for NZ at Level 2?
It is taking some time for new properties to appear on the market after level 4. Prices still going for crazy high amounts, or are just sitting there going stale.
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