After steady decline over 6 weeks, the overall sales rate at Barfoot & Thompson's auctions is under 50%

Property / news

Overall sales rate at Barfoot & Thompson's auctions drops to 43%

7th Dec 21, 9:52am by Greg Ninness

Activity remains robust at Barfoot & Thompson's auction rooms with 349 properties going under the hammer last week, but the sales rate has been in steady decline with less than half selling under the hammer at last week's auctions.

Of the 349 properties offered,149 were sold under the hammer, giving an overall sales rate of 43%, with the rest being passed in for sale by negotiation.

Around the Auckland region, properties in Rodney had the lowest sales rate at 30%, while those in Franklin had the highest sales rate at 77%.

However, Franklin was the only district where the sales rate was above 50%. (See the table below for the full district breakdown).

Last week was the sixth straight week that the overall sales rate has fallen at Barfoot's auctions, with the weekly sales rates listed blow:

16-22 October 68%
23-29 October 67%
30 October - 5 November 62%
6-12 November 59%
13-19 November 54%
20-26 November 50%
27 Nov - 3 December 43%.

Details of the individual properties at all of the auctions monitored by interest.co.nz and the results achieved, are available on our Residential Auction Results page.

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34 Comments

by CWBW | 7th Dec 21, 9:58am 1638824302

That's pretty normal for December. If we factor in the lockdown, this can also be viewed as a good result. The season has still a long way to go.

by Brock Landers | 7th Dec 21, 10:00am 1638824456

There is plenty of room for downward valuation.

Be patient!

by CWBW | 7th Dec 21, 10:06am 1638824780

Heard that almost everyday and as for today, you're the first.

25 years on and I haven't seen the tooth fairy you and your kind promised.

by Brock Landers | 7th Dec 21, 12:44pm 1638834269

The signs are there for those not willfully blind to them. Might want to get yourself down to Specsavers.

Be quick!

by VTHO | 7th Dec 21, 11:44am 1638830696

Na, CWBW is right, those 1 bedroom with study shoe boxes under the power pylons will be selling for a cool $1 Million soon. I mean, who wouldn't want one? Get in quick!

by RickStrauss | 7th Dec 21, 1:18pm 1638836297

CWBW may be right. It depends what else the Reserve Bank and govt have up their sleeves to keep the housing market pumped.

Allow 35 or 40 year mortgages so we can extract more from younger generations, perhaps? Not so long since they did the same from 25 to 30 years.

While our wealth is based off what debt we can pass to younger generations we'll always need to find new ways to maintain that.

by Snow | 7th Dec 21, 2:09pm 1638839355

Then extend to inter generational mortgages.

by Millennial_Woman | 7th Dec 21, 11:06am 1638828395

Because it hasn't happened in the last 25 years, makes it more likely to happen. Pressure must be released at some stage, but timing the pop is very difficult.

by AJ123 | 7th Dec 21, 11:28am 1638829731

Unfortunately, that's not true people who are waiting will keep waiting, this is not going to South by any means.

Wishful thinking cannot change reality.

by tothepoint | 7th Dec 21, 12:21pm 1638832918

I fear that rents will rise in early-2022 .....

TTP

by kiwiana02 | 7th Dec 21, 3:08pm 1638842880

However, the new rules mean landlords cannot raise rents more than once a year. That will limit rent increases. More importantly, the direction of market forces don’t indicate significant rent increases are likely. For example, the number of rentals on the market in Auckland at present is quite high, and rents are already as high as most people’s incomes can bear. Also people are leaving Auckland, whilst house building is going ganbusters. This all suggests an oversupply of houses in Auckland at least is imminent.

by company of heroes | 7th Dec 21, 10:21am 1638825669

Nah you can't use season as excuses anymore, lockdown is no more too. If it's not summer, spring and winter the good time to buy houses. What are the best seasons to buy houses? ;)

by Small Kev | 7th Dec 21, 12:59pm 1638835155

Ain’t really in the mood for houses, everyone is waiting for their holiday getaways. Maybe after Feb.

by Nifty1 | 7th Dec 21, 10:22am 1638825778

Sentiment has definitely changed, how long will it last though? Is this just a blip before the madness continues?

by Yvil | 7th Dec 21, 10:53am 1638827599

Sometimes we're too quick to draw conclusions but 7 weeks of continuously lower sales clearance is a clear trend and' it's down. To those who expect lower prices now, it won't happen yet, vendors will hold off discounting for a while but I do believe prices will soften come May 2022.

by Yvil | 7th Dec 21, 10:56am 1638827811

PS, it's mostly the lower end houses that are getting passed in, prices are too high for FHB, investors are holding off and many can't get finance. The higher end is still selling well. I expect this to show in the REINZ figures released next week, average and median prices will still be up, the HPI may well be flat.

by Brock Landers | 7th Dec 21, 11:04am 1638828258

Correct. The impending credit crunch will take out the market from the bottom first.

by chebbo | 7th Dec 21, 11:04am 1638828282

I think you're probably right. Inventory will be interesting to watch.

by Nifty1 | 7th Dec 21, 11:12am 1638828725

How long will the credit crunch last, seems very much in banks control at the moment...

by tothepoint | 7th Dec 21, 12:27pm 1638833250

Hi Chebbo,

When inventory goes up, prices go up.

When inventory goes down, prices go up.

In short, house prices are not beholden to anything.

TTP

by Brock Landers | 7th Dec 21, 1:05pm 1638835503

That may be how it works down at Property Brokers.

https://comcom.govt.nz/news-and-media/media-releases/2017/property-brok…

In a free market, however, an excess of inventory will usually lead to an easing of prices.

by JustAnOpinion | 7th Dec 21, 11:15am 1638828904

Indeed, a flat period is approaching due entirely to credit control. We are in the process of getting mortgages renewed and it is as hard as it has ever been. There are multiple new controls and increased discount rates to income. Not before time perhaps.

by Averageman | 7th Dec 21, 12:57pm 1638835037

The new normal is one of slowing sales. Speculators and owner occupiers are finding it very difficult to qualify for finance. So it will be like the last couple of years with one very important exception, interest rates are rising, not declining. Those that used central bank manipulated lowering of rates to hold on last time will be facing a very different debt servicing picture.

Kaaarrrkkkkk.

by Lord Dowding | 7th Dec 21, 12:31pm 1638833477

It’s under 50% because buyers can’t go unconditional with the tougher lending criteria. They are all selling not longer after with a subject to finance offers for crazy prices still.

by DTRH | 7th Dec 21, 1:19pm 1638836354

NZD sinking inflation and interest rate up and who knows how high they’ll go average wage earners cannot afford to buy home. You don’t need to be a rocket scientist to see this combination is going to effect housing price just by how much.facts are facts no FOMO can help people pay the debt any one who has purchased a house in last 3 years will be in negative equity this is best case scenario

by Small Kev | 7th Dec 21, 1:05pm 1638835546

“….. any one who has purchased a house in last 3 years will be in negative equity in the 18 months this is best case scenario “

And they will lower the rates again to save the economy and people will be buying again. Up down up up down up up up down…

by Averageman | 7th Dec 21, 1:41pm 1638837673

Indeed. I'm predicting 18 months of very difficult debt extensions as some take their medicine. Unless the banks change their lending policy's, who will bail people out at the current prices. Then its the run into the next election so Government will ease off the pressure to win votes.

by DTRH | 7th Dec 21, 2:37pm 1638841035

We are only a small fish in large point if inflation and interest rates are trending upwards in US our government has no choice but to raise OCR the NZD is already under pressure. We all know this housing market has reached the top and it only got there because of ridiculous low interest rates this has cause people to borrow more than they can afford.If interest rates go up 3% which is still low a lot of people will struggle. I think every 1% raise will knock off 10% of house price. It will be the biggest correction in housing ever and this government will not be able to do anything about it and will probably blamed on COVID with a shrug of her shoulders and a sigh.

by Rob Reid | 7th Dec 21, 3:07pm 1638842846

Housing downturns (assuming we are on the edge of one) usually take years to unfold, with rallies in some area along the way.

Don't eat all your popcorn now - you'll be needing it for later.

by EpsomArtsandCrafts | 7th Dec 21, 5:01pm 1638849680

This is the impact of the banks tightening up, so we will have to wait until the new year when the banks realise no one qualifies for a mortgage anymore and bring in version 2.0 of the new lending calculators so they actually write some mortgages again.

by Officebound | 7th Dec 21, 9:07pm 1638864457

They didn't tighten up because they wanted to, they tightened up because thats what the new CCCFA laws made them.

You think banks are willing to push against regulations in the face of an increasingly aggressive RBNZ?

by Nifty1 | 7th Dec 21, 9:30pm 1638865816

Yeah CCCFA but...Banks didn't have to self impose DTI, suddenly stop all over 80%LVR applications or reduce the amount they'd take for rental income etc... They're definitely in control here and are choosing to limit credit....

by Millennial_Woman | 8th Dec 21, 1:45am 1638881155

You clearly don't know much about CCCFA and its interpretation. 2 out of 3 of the things you mention above are reg driven.

by Nifty1 | 8th Dec 21, 6:33am 1638898417

CCCFA has got nothing to do with the self imposed restrictions I mentioned...