There has been a steady decline in the sales rate at Barfoot & Thompson's auctions over the last five weeks.
Last week (13-19 November) Barfoot & Thompson auctioned 259 residential properties, which was the the highest number over the previous five weeks.
However only 141 sales were achieved under the hammer, which was the lowest number of sales and the lowest percentage of sales over the previous five weeks.
That gave an overall sales rate of 54% last week, which means over the last five weeks the auction sales rate has fallen from just over two-thirds to just over half.
Last week the sales rates were particularly weak for auctioned properties in Papakura 40%, the central suburbs 43% and Rodney 50%, with the overall sales rate being lifted by stronger results from the North Shore 73% and Franklin 67% (see table below for the full district results).
Looking at the sales rates from the last five weeks shows a clear trend:
- 16-22 October 68%
- 23-29 October 67%
- 30 October - 5 November 62%
- 6-12 November 59%
- 13-19 November 54%
There is no doubt that the market has been extremely buoyant over the last few months with record prices being achieved.
However the decline in the sales rates over the last few weeks could be a sign that some vendors may be starting to have unrealistic price expectations and are meeting buyer resistance, causing more properties to be passed in.
Details of the individual properties offered at the auctions monitored by interest.co.nz and the results achieved are available on our Residential Auction Results page.
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12 Comments
Interestingly the sales rates are the lowest in the FHB/ cheapest suburbs ie Manukau, Papakura and Rodney. This could be an indication that the bottom of the market can no longer afford the prices been asked.
This is usually an indicator of the housing market turning- if the bottom cant sell their properties for what they want (as there are few buyers who can afford the asking price) - then they have to lower their price expectations and as a result have less available to bid on their next property, this then passes onto the next upgrader - and the whole market drags down.
No no. That will never happen in NZ market. People will keep on buying what ever the price. A million or two million. It's just chump change.
Prices will go up 30% again this year. Just buy or you will be left behind.
If bank doesn't give you money, take it from the money lending companies. You will still make profit after paying interest.
Just keep buying from each other and take the market to new highs. We all are millionaires in NZ.
The shortage of 3/4 bedroom homes across Wellington continues unabated. (Owners seem reluctant to sell.)
It's a large and growing problem for families who have been transferred to the Capital.
TTP
Not correct - although nice houses are hard to come by
I have done some personal research over the last 2 years based on Wellington Market only - not the whole of NZ and based on trademe listings (total I dont seperate land/ townhouses or houses- just total listings)
Nov 2019 - total Listings was
Lower hutt : 243
Upper Hutt: 156
Kapiti Coast 213
Porirua 116
Wellington 606
June 2020 - so first month after lockdown and start of the boom
Lower Hutt :239
Upper Hutt: 131
Kapiti coast : 230
Porirua : 130
Wellington :453
I also took at that time Queesntown = 453 and North Shore Auckland 1256
As of today
Lower Hutt : 385 -160 are 3 bedroom and 89 are 4 or 5 bedroom
Upper hutt : 163 - 70 are 3 bdroom and 54 are 4 or 5 bedroom
Porirua : 133 - 50 are 3 bedroom and 60 are 4 or 5 bedroom
Kapiti coast :213 - 82 are 3 bedroom and 59 are 4 or 5 bedroom
Wellington 607- 200 are 3 bedroom and 173 are 4 or 5 bedroom
Looking at the Reinz report where 700 homes a month sell in the wellington region there is 8.5 weeks stock on hand in Wellington of which 562 homes are 3 bedroom (37%) and 435 are 4 bedroom or more (32%).
54% is not a bad rate, If you check with Re-agents they will confirm that the market is super hot and there is not enough stock for sale.
The asking price is inching up on weekly basis.
Yeah.. Just keep buying. Don't stop now.
Let's take the auction rate to 100%. Average house price will be 1.5 millon in NZ by mid next year.
If anyone doesn't buy now will be a loser. So just do it. Don't keep any money in the bank, it's if no use to you.
54% is not a bad rate indeed, but it's a bad rate for this spring and summer season, especially when Auckland just came out of lockdown. I can definitely there are some responses to higher interest rate in the market now.
It might just be prices are in a gully at the moment as people allocate some of their savings/ income to buying Xmas gifts for their children and family members. The real buying opportunities for FHB and new investors will be over the summer where one could potentially snap up a bargain and capitalise on the growth over the long term.
NZ is still the best place to live in the world during the COVID-19 turmoil in terms of physical safety, personal freedoms and food security where it's ranked No. 1 in the world. An interesting trend is less Chinese looking at Australia due to the ongoing racism with the Wuhanvirus and coming here. Also, rich HKers are relocating here too and snapping up prime residential and commercial real estate so it keeps a price floor to the market.
Haha! That's it - just in a gully. Straight from The Big Short.
https://twitter.com/locantrotony/status/1271253918404579329
I'm sure things will be just fine.
Be quick!
Yep NZ is going to be the place to be living going forward. The housing market here is very resilient, if it not one thing helping it truck along its something else. Just when you think it just has to take a dive, it goes up instead. We do however have to see a slowdown, house prices double in NZ every 10 years so 3 years this time round would be unacceptable.
Fake news. A recent large study showed very positive sentiment of Chinese moving to Australia, outperforming Canada, UK and the US.
A sleeping giant waiting to be awaken.
Isn't hard to comprehend if people pay attention in school to understand the differences between potential and kinetic energy.
Be quick!
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