Barfoot & Thompson's auction numbers now running ahead of the same time last year

Property / analysis

Barfoot & Thompson's auction numbers now higher than last year with two thirds selling under the hammer

26th Oct 21, 12:41pm by Greg Ninness

Barfoot & Thompson's auction rooms are now busier than they were at the same time last year.

The real estate agency, which is the biggest in the Auckland market, handled 230 residential property auctions in the week prior to Labour Weekend (16-22 October).

That compares to 219 in the equivalent week of last year (17-23 October 2020).

The sales rate was also higher this year, with 157 properties selling under the hammer at last week's auctions giving an overall sales rate of 68%, compared to the overall sales rate of 62% in the same week a year ago.

The latest sales results would suggest a buoyant market at any time, but the fact that they were achieved under Level 3 pandemic restrictions suggests the summer selling season is off to a particularly strong start in Auckland this year.

Auction numbers were high for properties in all of Auckland's seven sub-districts, with the sales rates ranging from 45% in Papakura to 87% in Waitakere (see the table below for the district results).

Details of the individual properties auctioned and the results achieved are available on our Residential Auction Results page.

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22 Comments

by tothepoint | 26th Oct 21, 12:46pm 1635205611

Hey folks,

Let's slow it down a little and let things cool off a bit.

No need to race in the current circumstances.

TTP

by xingmowang | 26th Oct 21, 1:04pm 1635206682

the US keeps printing $ and NZ is have 160k more people lining up for a house.

One wishes to slow down but simply cannot afford to.

Let's keep the fire blaze.

by Jay Lim | 26th Oct 21, 2:00pm 1635210000

Vendors are setting unrealistic reserve prices for their off-standard homes, still selling well over the reserve prices they offered.

This is insane.

by CourtJester | 26th Oct 21, 3:04pm 1635213848

Your "160k more people lining up for a house" point is false.

by Carlos67 | 26th Oct 21, 1:14pm 1635207275

The market is still on a Bull run. The only place I have watched sold even before it hit the open market, the buyer was already on the RE books wanting to buy. They put in a crazy offer as they were sick of being pipped at Auctions and it hit the market under conditional for just 2 weeks. SOLD. The prices of houses in Tauranga are now the same as Auckland had only 12 months ago. There will simply be no end to this until the OCR hits at least 2%.

by Zachary Smith | 26th Oct 21, 1:17pm 1635207459

Quite a few warning shots have been fired over the bow now...

by Camel's back | 26th Oct 21, 1:29pm 1635208142

Two houses in our road sold before they could even get the signs up. Lifestyle blocks in Franklin... Go crazy NZ!

by Nifty1 | 26th Oct 21, 2:10pm 1635210639

No matter how many 'housing cool off' predictions are made, kiwis still go mad for real estate...

Will anything slowdown FOMO?

by Framan | 26th Oct 21, 2:09pm 1635210566

The madness needs to end!

We have bagged Investors and Developers for pushing prices up but the truth is they are only part of the problem.

Take the case of first home buyers who struggled and saved for a deposit and bought a $800K property a year ago. Today they get offers of $1.3M. This is an amazing "windfall" so what do they do? They sell up and re-invest in a more expensive property hoping that they will make an even bigger "windfall" next time. It is just human nature but it is also what is driving up prices!!!

The next statement will annoy many readers here but it is the only answer. An Accrued Gain Tax on property. When property is sold an allowance of 3% gain per year is tax free. After that any gain is taxed at the top tax rate. New builds and Developers would be handled under a different tax regime. I guarantee this will solve the obscene prices now being asked. Nothing else has worked.

by bw | 26th Oct 21, 2:39pm 1635212386

Any tax can, and will, be avoided. That's most of the reason we are, where we are.

"I'll sell you the house that I bought for 1million last year for the same price, if you buy my 1999 Honda Civic parked in the garage for $750,000" etc. "Honestly, sir. I didn't know I'd make that much on an old car. I only bought it for transport" (NB: Yes. I know that would affect borrowing capacity, but you get the drift)

It's not about tax or even the cost of money, but access to debt.

Curtail buyers borrowing capacity, and demand will remain desire until they have the purchase price without debt. Let any individual taxpayer use their IRD number ONCE to get a retail mortgage. After that, it's 0% LVR - spend your own money first. Builder etc have to apply to get financing at commercial rates. Who oversees this? The RBNZ via the Licensed Banks, both onshore financing (mortgages and building loans) and capital inflow used to by-pass regulations. Can be done, even if that suggestion need some fine-tuning.)

Our problems aren't about the cost, or even the amount of money in The System, but who creates and controls it.

by CourtJester | 26th Oct 21, 3:07pm 1635214061

Labour promised no new taxes, so it won't happen. Because, for whatever mysterious reasons, that's the only promise they decided not to do a 180 on. Every other promise can be broken except for that.

by Noncents | 26th Oct 21, 4:14pm 1635218087

Pretty much all tax types are captured somewhere in NZ Legislation, it is just a case of adjusting where required.

As we saw with fuel, it's not a "New" tax, its an "updated" one.

by Lord Dowding | 27th Oct 21, 9:36am 1635280617

Piss off with your draconian accrued capital gain tax. Homeowners pay more than enough in rates to the council without more tax to the government for goodness sake.

The only tax I’d be in favour of would be a stamp duty on properties purchased other than the primary residence.

by rastus1 | 27th Oct 21, 1:07pm 1635293220

Problem with that is for someone buying and selling on the same market - they go backwards.

Eg you get a job transfer, sell your home but cannot re-buy the same house.

That is why I am not a fan.

by Kohukohunui | 26th Oct 21, 2:37pm 1635212279

bubbles gonna bubble

by Mr Frank | 26th Oct 21, 3:30pm 1635215413

Welcome back!

by Pragmatist | 26th Oct 21, 4:49pm 1635220174

But Broken Landings told me just last week there had been an "unusually high" level of passed in Auctions...

by Lord Dowding | 26th Oct 21, 7:23pm 1635229431

What has he been watching. It’s mania again on the shore.

Tune into ray whites Thursday night auctions and see for yourself. Last week was absolutely insane prices and everything was sold.

by bookworm69 | 27th Oct 21, 8:50am 1635277818

Neighbours are teaming up to sell 2 or 3 properties to developers. Two at the corner of our street sold for $4 million and the buyer has the option to buy the third house adjacent to those.

Same street a few months ago - 911 sq m very narrow section with old house on it sold for $3.86 million. We were all wondering how on earth they would get their money back - answer: resource consent just gone in to build 6 townhouses!

Unfortunately we have a cross-lease section. Time to do away with cross-leases?

by Lord Dowding | 27th Oct 21, 9:31am 1635280268

Talk to your cross lease neighbour about paying to change your cross lease to freehold

by CWBW | 26th Oct 21, 5:48pm 1635223706

The land on which Auckland is now sitting on is paved with gold. With densification, rising construction demand, every home buyer are given lottery tickets to a multi-prized jackpot.

Developers want your patch to build townhouses - jackpot!
Council needs to build critical infrastructure across your property -jackpot!
Lower number of larger standalone houses - jackpot!
Sub-divisible now - jackpot!
Increasing housing register wait list - jackpot!
Your property is in the way of new construction development - jackpot!
New revised RMA stipulates a compulsory green space in your neighbourhood - jackpot!
International and regional boarders re-opening - jackpot!

What are you waiting for? How many lifetimes will need to live to hit a single jackpot?

Your wait is someone else's opportunity.

Ps. Too many jackpots to list in this post - feel free to add your own.

by Albert2020 | 26th Oct 21, 6:56pm 1635227794

C'mon Ashley, OneRoof not paying you enough?