Residential auction activity in Auckland continues its steady decline as lockdown restrictions reduce the number of properties being offered for sale.
Last week (4-10 September) Auckland's largest real estate agency, Barfoot & Thompson, took just 27 properties to auction.
That was down from 163 in the week immediately before Level 4 lockdown restrictions were put in place (7-13 August).
The number of properties being auctioned has declined every week since the restrictions were introduced and could still decline further.
However the sales rates being achieved have remained remarkably resilient, with sales achieved on 70% of the properties offered last week.
Over the previous four weeks the sales rates ranged from 62% to 77%.
Although auctions and property viewings can be held online during lockdowns, many buyers will be deterred from bidding by being unable to attend open homes or arrange property inspection reports.
Vendors are also affected and would find it difficult if not impossible to arrange things such as photography, home staging and the services of tradesmen during lockdown.
With restrictions likely to be eased as we head further into spring, it's likely vendors and buyers alike are simply deciding to postpone planned auctions until normal marketing activity can resume.
Even after restrictions are eased, it will likely take at least a month for auction activity to get back a full head of steam, with most marketing campaigns needing a week to organise and around three weeks to run their course prior to auction.
So real estate agents, banks and mortgage brokers could all be in for a busy time once restrictions are eased, as they cope with pent up demand from both vendors and buyers.
The table below shows the district-by-district breakdown of Barfoot & Thompson's auction activity last week.
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| Barfoot & Thompson Residential Auction Results | |||||
| 4-10 September 2021 | |||||
| District | Sold | Not Sold | Total | % Sold | |
| Northland | 1 | 0 | 1 | 100% | |
| Rodney | 0 | 1 | 1 | 0 | |
| North Shore | 0 | 1 | 1 | 0 | |
| Waitakere | 4 | 0 | 4 | 100% | |
| Central suburbs | 3 | 1 | 4 | 75% | |
| Manukau | 6 | 1 | 7 | 86% | |
| Papakura | 4 | 1 | 5 | 80% | |
| Franklin | 1 | 3 | 4 | 25% | |
| Total | 19 | 8 | 27 | 70% | |
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9 Comments
Clearly it is difficult/impossible to profile and list a house during level 4. No open homes, no tradie's for quick paint or repair etc etc. Barfoots is big in Auck but nowhere elsewhere. Accordingly they are dead in the water and probable claiming wage subsidy for staff.
After the year and half that they've had, it would be outrageous for them to be claiming the wage subsidy
I don't think you can argue that companies above a certain size or cash flow should dip in to previous profits. Pretty tricky to manage. And I say this as someone who loathes auction firms. Practically use the tricks of hypnotherapy to put people in stupid debt.
Agree that they are probably going to be eligible for the wage subsidy. However it won't help their case from a moral and ethical perspective.
From "a moral and ethical perspective" real estate agents don't rank too highly as an industry. So in that respect, they've little to lose from claiming the wage subsidy. Chances are they'll claim it.
TTP
The subject matter expert has spoken.
The rule is 40% drop of income, so anyone who had good income and now has none clearly qualifies, it's very simple. Your personal opinion of whether it's right or wrong is irrelevant
Hi Yvil,
Note that there are many businesses which are entitled to take the wage subsidy which, nonetheless, choose not to take it - for moral and ethical reasons. That's fact - not opinion.
So, it's not as simple as you may think.
TTP
Nothing to see here.
It can only mean one thing - the FOMOs will be at full force when Auckland is post level 4.
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