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Real estate auction activity has almost dried up with most vendors choosing to postpone selling their properties

Real estate auction activity has almost dried up with most vendors choosing to postpone selling their properties

Auction activity is continuing to decline to negligible levels as lockdown restrictions take their toll on the residential property market.

Last week (11-17 September), Auckland's largest real estate agency Barfoot and Thompson auctioned just 18 properties.

If it was not for lockdown restrictions, that number would likely have been around 200-300.

Barfoot didn't auction any properties from the Papakura district last week and just one property from each of the Rodney, Waitakere, North Shore and Franklin districts (see the table below).

However although the number of properties offered at auction was extremely low, almost three quarters of the properties offered were sold under the hammer.

The low level of auction activity is not unique to Barfoot & Thompson, with auction activity at most agencies sharply curtailed over the last few weeks.

The low number of auctions highlights the limitations of online auctions.

Although they are proving to be a useful tool in the market, their major drawback during situations such as lockdowns is that potential buyers are unable to view properties in person or arrange for building inspections.

Potential vendors are also disadvantaged because they would be unlikely to be able to organise professional photography, or have their properties staged during lockdown.

Given these difficulties, it appears that buyers and sellers alike are deciding to postpone sales until restrictions have been eased sufficiently to allow normal marketing campaigns to proceed.

And once that does happen it could take about a month for auction activity to get back up to normal levels, with agents generally requiring at least a week to organise marketing campaigns followed by a two to three week campaign prior to the auction.

The comment stream on this story is now closed.

Barfoot & Thompson Residential Auction Results
11-17 September 2021
  District Sold Not Sold  Total  % Sold
  Northland 3 0 3 100%
  Rodney 1 0 1 100%
  North Shore 1 0 1 100%
  Waitakere 0 1 1 0%
  Central suburbs 4 0 4 100%
  Manukau 3 4 7 43%
  Papakura 0 0 0 0
  Franklin 1 0 1 100%
  Total 13 5 18 72%
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22 Comments

Getting the population fully vaccinated takes precedence over trading houses.

TTP

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5

Why not both? We've tried live music and kai, maybe Barfoot would have better luck with a "Bid and Jab" event. A "vaccinauction", if you will.

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Needles and bubbles are not great bedfellows

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10

Nothing like a good dose of pressure cooking.

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I think exhaustion is coming into play, buyers are sick of a sellers market. Have abandoned buying until prices come back down to earth.

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Wise

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Wishful

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10

Agreed. I'm very surprised at these results. No mitigating factors either...

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A few things here, do you recall the great toilet paper shortage of 2019? As soon as buyers get wind of house prices dropping - via the media, via data, statistics etc, a new flurry of vultures will quickly swoop in. The same will apply when international boarders open again, and, a sniff of interest rates rising will also ignite/continue more panic buying.

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International borders opening is more likely to see kiwis leaving for overseas - for deferred OE, for better opportunities such as well paid jobs and more affordable housing. We won’t be allowing in immigrants as fast as some people think or in numbers like before.

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You reckon? Im not saying you are wrong but I'm betting they'll allow everyone back back in the second headline GDP starts slipping.

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I wish that was true but let's be honest - why would you sell in level 4? Interestingly I make this argument as someone who has 'given up'. Ill return to the fray when NZ sellers realise that prices won't move far in a rising interest rate environment. 

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Settling this month something we bought in May.... so values are already way up from the price we paid. That is a good way to create equity. BTW does anyone know when The Block houses will be auctioned

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$100k in the pocket at least if you are in Auckland?

Well done! Enjoy it. It will only increase further over summer.

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2 houses  on separate titles, gift to the offspring as first homes. Setting up a mortgage so no relationship property claims

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Really 4 not sold in Manukau. Where are those people with pockets full of cash and thinking there is no tomorrow and should buy it all? M

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Why would people with cash buy any house?

They aren't silly. 

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Cash devalues faster than housing. The opportunity cost and risk are in favour of housing being the better of many options. Even better than having a job and working for a living. Which is depressing for the country and what it means to those on low low incomes.

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@pacifica ....... "Cash devalues faster than housing" .....that is true in an upward market...... but what about when the housing market is decreasing ? 

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Sheeple, sheeple, sheeple .....don't worry, this is just a "minor blip" in transmission, due to a world wide pandemic, nothing to see there, move along  ......the PPP (property ponzi party) must stride onwards and upwards ! .......we are all salivating for our favorite TV show and those upcoming property auctions of "The Block" just to show how "resilient" these current prices are ! .........that flood of "cashed up" buyers overseas, all lined up waiting for a spot in MIQ to buy $$$ buy $$$ buy $$$ in your neighborhood ......the PPP must continue this "party" at all "costs" ......don't worry about increasing interest rates  - just cut back on that Ciabatta BLT with AVO at your nearest overpriced cafe ....... any questions or concerns, just have a chat with Uncle Ashley and he will calm your furrowed brow with all the positive news and outcomes that are in store for YOU ! .....whilst Auntie Annie at "mother herald" will delight you with property stories like "how a poor refugee from a stricken war torn country arrived in New Zealand with nothing but his cattle herding stick and built a property portfolio in 5 months now worth $6,000,000" .....just relax ....breathe ......nothing will stop this "gravy train" to happiness  and ultimate riches ! 

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Ohhh dear what a shame...does this mean Barfoots will have their hand out again for more taxpayer Covid subsidy despite 18 months of creaming record commission rates....

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What a shame, as Ever, they would have made a Grande day out.

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