Barfoot & Thompson's median selling price down $55,000 in January

Property / news

Big drops in Barfoot & Thompson's average and median prices at the start of the year - sales numbers also down

3rd Feb 22, 10:19am by Greg Ninness

The average and median prices of residential properties sold by Barfoot & Thompson dropped substantially last month.

The average price of residential properties sold by Auckland's biggest real estate agency in January was $1,230,581. That's down $48,066 (-3.8%) compared to December's average of $1,278,647.

The median selling price in January was $1,180,000, down $55,000 (-4.5%) compared to December's median of $1,235,000.

The agency sold 801 residential properties in January, down by 26% compared to the 1086 it sold in January 2021.

However the total number of properties Barfoots had available for sale headed in the other direction, increasing to 3827 at the end of January, up 22% compared to January last year.

That meant Barfoot & Thompson's total stock of residential properties available for sale was at its highest level for any month of the year since November 2020.

Those figures taken together suggest there could have been a significant shift in the market at the start of 2022, even though January is not a good month to pick trends because it is affected by the Christmas/New Year break.

However Barfoot & Thompson Managing Director Peter Thompson was upbeat on the prospects for sales over the peak months of February and March.

"Prices eased marginally from those recorded in December, which is common, sales numbers were excellent and and new listings were healthy," he said.

"Direct comparisons with trading over the past two years are challenging because throughout 2020 and 2021 trading was disrupted by Covid lockdown restrictions.

"However, based over a five year trading horizon, January's sales numbers have set the market up for a positive late summer and early autumn trading season."

The comment stream on this story is now closed.

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182 Comments

by Toye | 3rd Feb 22, 10:21am 1643836908

GET IN QUICK

by theglc | 3rd Feb 22, 12:14pm 1643843655

To be fair there have been these fluctuations over the last 2 years but the trend line is still obvious.

Until there is a few months of decline I dont think we can assume its necessarily all down hill from here

by Fluffybunny | 3rd Feb 22, 7:46pm 1643870779

My wife works in a Re office. Talk today was all about getting vendors to lower expectations. People selling after buying recently due to higher mortgage payments.

Weve priced in over a decades worth of inflation during 2020 - 2021, and the cash machine is not printing further expansion.

Unless govt or rb response is taken I'm picking a reasonably strong chance of a correction back to or just above early 2020 pricing.

People just can't afford the current expectations at the current borrowing rate. Which is silly really if this is the case. Rates were always going up at some point.

For all the trash talking aimed at Mr Orr, we now get to see where his priorities are. House prices vs rampent inflation. Your move Mr governor.

by HouseMouse | 3rd Feb 22, 10:01pm 1643878904

It's a fascinating conundrum.

If you look at face value at his mandate, it's inflation, employment and stability of the financial system. At face value, there should be no hesitation- he needs to hike the OCR repeatedly to tame inflation, it's no contest with house prices.

But then you look beneath the surface and think about what a house price crash would mean for both employment and stability of the financial system - and the picture looks a bit different.

That's why he will cautiously nudge the OCR a bit higher over the next 5 months, and hope like hell the economy cools significantly, and inflation with it. Then he can halt the OCR rises and avoid too much damage to the housing market.

If the economy doesn't slow as much as he hopes, and I think, then he will need to keep lifting the OCR and I will be wrong. And we'll have an even harder economic and house price landing.

by 7jai | 3rd Feb 22, 5:18pm 1643861908

Happy to see the news on house prices dropping. I am looking forward in purchasing a few investment properties since borders are now opening and people will rush into NZ to get the easy citizenship/residency and they will need a place to stay.

-7

by ozzzy2 | 3rd Feb 22, 5:38pm 1643863108

Like the Great Toilet Paper Shortage of 2020, I'm looking forward to the Government imposing tighter restrictions on unscrupulous and greedy investors, as to how many properties they can buy/hoard.

-8

by Waikatohome | 4th Feb 22, 12:35pm 1643931356

9 lots at B&T central auction rooms today. All passed in. A pre-auction offer auction in Flatbush sold at $1.25 million after no further bids. Similar properties were selling for $1.5 million in September/October.

by VTHO | 3rd Feb 22, 10:30am 1643837430

BE QUICK

by house hunter | 3rd Feb 22, 2:43pm 1643852609

To sell?

by 7jai | 3rd Feb 22, 5:19pm 1643861954

To sell, rebuy, sell, rebuy, sell, rebuy... to be continued

-7

by rjn1 | 3rd Feb 22, 10:35am 1643837700

However Barfoot & Thompson Managing Director Peter Thompson was upbeat on the prospects for sales over the peak months of February and March

Goodness me. He'll need to instruct his agents to appraise to current market conditions lest sales grind completely to a halt. Still some silly expectations out there from vendors who will likely regret anchoring themselves to yesterday's prices.

by HouseMouse | 3rd Feb 22, 11:10am 1643839842

Of course he's upbeat. In his line of business you have to put on a brave face whatever the outlook. And there's always room to spin a good news story.

by Fluffybunny | 3rd Feb 22, 11:22pm 1643883774

Agents won't care to much about prices going down. Increasing days to sell means More vendors they can work with and they will just switch to prioritise those with easier sales expectations.

by ozzzy2 | 3rd Feb 22, 5:31pm 1643862675

I'm more convinced that it's the Agents that are the ones still pushing the bigly envelope. Even in places like Gore and Greymouth, some are listed $500k+ (RVs $250) or $100k overvalued even in this inflated climate... Sometimes I get peeved off at their lack of ethics and morals, and email them saying, "dude WTF!" (and then they email me back saying, it's under offer. lol) ):

by Brock Landers | 3rd Feb 22, 10:35am 1643837745

There is still plenty of room for downward valuation.

by lowercase capitalist | 3rd Feb 22, 10:41am 1643838070

Beak wick.

by HouseMouse | 3rd Feb 22, 11:11am 1643839907

Be Quicksand.

That sinking feeling.

by tothepoint | 3rd Feb 22, 12:11pm 1643843515

Sales volumes will fall - but prices will hold pretty well.

TTP

by Toye | 3rd Feb 22, 12:32pm 1643844741

Did you even read the article?

by Brock Landers | 3rd Feb 22, 12:36pm 1643844963

TTP is the fixer of prices.

by tothepoint | 3rd Feb 22, 12:47pm 1643845672

Hi Toye and Brock Landers,

You'll find that house prices are pretty resilient through most of the country. But movements aren't linear over time - and neither should anyone expect them to be.

If you wanted a bargain, you should have purchased a dwelling a couple of years ago - 2019 or earlier.

TTP

by Brock Landers | 3rd Feb 22, 12:55pm 1643846111

2019 would be a low IQ move. Should have purchased a dwelling in 1971. Or 2024.

by tothepoint | 3rd Feb 22, 1:10pm 1643847048

With all due respect, Brock, not too many people who bought in 2019 are now regretting it.

TTP

by Brock Landers | 3rd Feb 22, 1:13pm 1643847187

Not yet... tick tock...

by HouseMouse | 3rd Feb 22, 1:16pm 1643847390

Well, I certainly aren't. But then, I got a good deal, had a 25% deposit, and a pretty manageable mortgage (relative to our household income - about 2.5 X).

But those who paid over the odds and/or took on far too much debt - and need to refinance this year - might be about to regret it. Although it's probably more the people who bought from late 2020 onwards, rather than 2019.

by Fluffybunny | 3rd Feb 22, 7:49pm 1643870943

Plenty of people who bought in 2021 will be. Particularly those on 1 year rates.

by Pragmatist | 3rd Feb 22, 2:15pm 1643850942

Indeed, far more likely to regret it if you could have purchased in 2019 and didn't.

by Carlos67 | 3rd Feb 22, 5:06pm 1643861194

Yes that's more like it Prag. If some on here can buy mortgage free in Australia now then they certainly could have bought here. The market was still good in Sept 2020 when I got back in but it started going nuts shortly after that.

by 7jai | 3rd Feb 22, 5:20pm 1643862054

Wishing we were all Robin Hood. Only rich people houses crash, and that money gets flown into the FHB so they can buy a home.

I think I've seen this in Disney movies.

-7

by tomjones_04 | 3rd Feb 22, 7:27pm 1643869643

Grammar please!! And what’s up with the sign off?

-7?? Maybe ask someone to proof read your posts before you execute. Might save you some embarrassment (even more embarrassing than the content of your posts)

by Brock Landers | 3rd Feb 22, 7:14pm 1643868880

The -7 is likely to be your drop in IQ after reading...

by kpnuts | 3rd Feb 22, 8:08pm 1643872087

i thought he had found a way to downvote himself

by chebbo | 3rd Feb 22, 10:38am 1643837911

Statistics are tricky. Only yesterday CoreLogic was saying that house prices in Auckland were up 6.7% in the three months to end of January.

by Toye | 3rd Feb 22, 10:40am 1643838030

Probably because it included the 2 months before January...

by chebbo | 3rd Feb 22, 10:42am 1643838130

Well obviously, but the overall implication was that house prices are on the rise. Just shows how easy it is to frame things in different ways.

by Toye | 3rd Feb 22, 10:49am 1643838560

True. I can't wait for the news articles from vested interests about this.

January: House prices now up 23% in the last 12 months!

February: House prices now up 19% in the last 12 months!

March: House prices now up 14% in the last 12 months!

by morepork | 3rd Feb 22, 3:07pm 1643854040

April: House prices up 13% in the last 2 years!

by HouseMouse | 3rd Feb 22, 4:44pm 1643859845

haha....which would require a big drop before then!

by lowercase capitalist | 3rd Feb 22, 10:42am 1643838134

Lies, damn lies and statistics.

by Nifty1 | 3rd Feb 22, 10:48am 1643838494

Exactly, it's hard to navigate through bs at times...

by Rob Reid | 3rd Feb 22, 1:59pm 1643849981

These stats are sale prices, right? Could just reflect more of the cheaper places trading hands - eg. investors selling their less attractive stock.

I just hope my landlord doesn't decide I'm living in his the less attractive stock.

by northman46 | 3rd Feb 22, 10:41am 1643838097

BE QUICK

by HouseMouse | 3rd Feb 22, 11:09am 1643839768

There you go, it's started as most of us predicted.

What ya reckon CWBW?

Be Quick???

by CWBW | 3rd Feb 22, 4:01pm 1643857268

Yes.

Unfortunately there is no award for predicting a slow down on Januarys anymore than predicting the sun will rise in the morning.

You make me wonder if you really own your own house.

If not, be quick.

by HouseMouse | 3rd Feb 22, 4:51pm 1643860309

I've owned my own house for just over 2 years (and *wow*, up circa 35-40%), but unlike you, I'm concerned about the social and economic future (and present) of the country and am not a greedy and heartless ..... person.

Having only bought 2 years ago, I also empathise with people trying to buy that first house, how soul destroying it can be.

Within a few months the evidence of a slump will be categorical, and you'll have egg on your face!

by CWBW | 3rd Feb 22, 5:21pm 1643862115

If you're that altruistic and cocksure about the direction of house prices, why don't you sell up at a discount to the market to help lower the average prices.

Surely you can buy back in cheaper.

Like the polls showing some owners wanting the prices to be lower at the press or internet; yes they want other people's prices to be lower, just not theirs.

That seems to me, people want lower prices because they want to buy their second cheaper- it wasn't about altruism.

by HouseMouse | 3rd Feb 22, 7:25pm 1643869536

Haha, lame retort.

by Kjeldorian | 4th Feb 22, 7:03am 1643911396

"concerned about the social and economic future of the country"

also wants house prices to crash 60% causing a major recession.

recessions are good for everyone right?

by DTRH | 3rd Feb 22, 11:11am 1643839894

I am surprised they sold this many not sure who would buy at this point , interest rates going up,inflation high ,NZD tanking,looks like a downward slide is upon us. Also the market is being flooded now over 26000 house for sale on trademe. At auction yesterday in Auckland 1 out 15 sold .I think the smart people have already sold.The market will be on sale for next few years at decreasing prices it will probably go down twice as fast at it went up.

by rastus1 | 3rd Feb 22, 11:19am 1643840377

There are plenty out there who don't read Int.Co and are blinded by the BS that is rammed down their throat every second by the NZ property machine.

by HouseMouse | 3rd Feb 22, 11:21am 1643840473

Hopefully those who do read Int.Co ignore the rantings of a certain troll.

by JimboJones | 3rd Feb 22, 3:33pm 1643855616

Just one?

by HouseMouse | 3rd Feb 22, 4:53pm 1643860383

One in particular, but perhaps 3-4 others who pitch in at times.

by Waikatohome | 3rd Feb 22, 4:05pm 1643857531

Yes still the odd sucker making pre-auction offers that win with no further bids. I feel sorry for them.

B&T auctioneer giving it everything in his opening talk today for the first lot. "Go hard and go early with your bidding to blow away the competition". 1st Lot: Passed In - no bids.

by Chris-M | 3rd Feb 22, 8:53pm 1643874806

A few market dynamic basics.

Rising prices, rising volumes = bubble

Rising prices, falling volumes =stable market

Falling prices, rising volume = stable market

Falling prices, falling volumes = crash

by diy-guy | 3rd Feb 22, 3:41pm 1643856113

By "volume" do you mean "listing volumes" or "sales volumes" ?

by Chris-M | 3rd Feb 22, 4:25pm 1643858733

Sales

In a crash I would expect sales volumes to fall and listing volumes to rise which is the case here.

by Averageman | 3rd Feb 22, 11:19am 1643840354

BE QUICK. The Banks are. Quick to reduce their bubble exposure. The banks can and will do what ever they want with your mortgage. Remember that thing you signed that they tell you several times to get legal advise, or even read yourself. Newsflash...Its only serves to lock you in as financial slave for their shareholders.

https://www.stuff.co.nz/business/127650304/couple-stunned-as-bank-takes…

by Nifty1 | 3rd Feb 22, 11:21am 1643840480

This has always happened...hence why people are often recommended to hold properties at different banks. Just another CCCFA beat up article by media...

by theglc | 3rd Feb 22, 12:26pm 1643844410

This is a reminder that you don't own the house until its paid off

by redcows1 | 3rd Feb 22, 12:39pm 1643845161

No.

Until the banks interest is removed from the title, or whatever it's wording.

by vman | 3rd Feb 22, 11:24am 1643840678

Yes averageman, the banks are quick to use the CC&CFA as an excuse so they can blame the government,but they don't want to be caught with their pants down...so this will be coming to many an over leveraged investor as they sell or re-finance...

by lowercase capitalist | 3rd Feb 22, 11:33am 1643841206

"Local couple didn't read mortgage agreement, vent spleens to media"

by Jonny_Utah | 3rd Feb 22, 11:56am 1643842617

I don’t have a problem with the banks actions. A significant change occurred in the couple’s circumstance.

but they really should have all communicated. Well done to that couple on the profit. They sold at just the right time, have 150k more equity in their PPOR and 150k left for a Reno.

by Whatwillhappen | 3rd Feb 22, 3:14pm 1643854483

$300k is a big reno. We took our bargain basement house from hovel to above median price for $100k. That includes extensive landscaping, kitchen and bathroom and deck replaced, roof painted, double glazing. If the couple does most of the work themselves they're in an enviable spot. Would love to have the bank shave $150k off the mortgage.

by Waikatohome | 3rd Feb 22, 4:09pm 1643857773

Is that materials only? If you did all that with labour and materials you did well. Can I have the number of your builder :)?

by Rob Reid | 3rd Feb 22, 2:03pm 1643850229

🤣

by TheTor | 3rd Feb 22, 4:19pm 1643858351

They're barking up the wrong tree. They should be angry with their mortgage broker who didn't advise them to have their mortgages with two different banks.

by HouseMouse | 3rd Feb 22, 11:17am 1643840266

The BS we will now have to suffer will go like this:

'We are now in a buyers market, where great opportunity exists for savvy investors'.

by Averageman | 3rd Feb 22, 11:21am 1643840497

Perhaps its may make sense to buy a property adjoining one you already own, for group development. Aka an additional incentive, otherwise its clear the banks think a route is underway. Watch. This. Space...

by HouseMouse | 3rd Feb 22, 11:27am 1643840832

maybe one or two years ago, as I advised at the time with all the zoning changes that were clearly signaled by the government (but which most people weren't paying much attention to), but not now. Far too much supply coming through and there's going to be a construction slump.

The clever money was buying / expanding development properties two years ago, and the clever investor money sold up by late last year.

by Sparrow1 | 3rd Feb 22, 11:59am 1643842774

With the push in signing up apprentices with the boost payments and fees free people forget the 80's when big firms were making their apprentices redundant as soon as they qualified as they didn't have the work

by vman | 3rd Feb 22, 11:19am 1643840389

This can't be true, it was only this morning that Mike Hosking was spruiking the housing market on his show...onwards and upwards..."happy days" as he is won't to say..

He will be doubling down on the "socialist government...","this mob.." rhetoric...he is desperate to get Labour out so he can show Prime Minister Ardern that NO-ONE ignores "Mikey" as JK used to address him.

by HouseMouse | 3rd Feb 22, 11:22am 1643840564

Also A Church says this morning that there is nothing to worry about in the housing market with rising interest rates.

Apparently people like us are just fear mongerers. AKA DGMs.

by vman | 3rd Feb 22, 11:28am 1643840885

True HouseMouse...who would lose sleep with a million dollar mortgage coming off fixed at 2.00% to double that...only DGM's worry about trite issues...

by HouseMouse | 3rd Feb 22, 11:32am 1643841120

Yep. And why would interest rates north of 4 or 5% have any impact on people's ability to buy property on the market?

That couldn't possibly suppress demand, at a time when supply is ramping up, and reduce prices could it now???

by Averageman | 3rd Feb 22, 11:24am 1643840694

Hoskin's is so one eyed on this issue he must be a leveraged speculator. Picking we are going to see increase squealing from him and this wider group as things continue to tighten.

by Nifty1 | 3rd Feb 22, 11:24am 1643840658

Ahwell Labour and the team are opening the borders, no doubt hoping that it will solve a few issues on the horizon and keep it BAU...

by HouseMouse | 3rd Feb 22, 11:29am 1643840972

In 6 months there won't be the jobs for immigrants to come to.

by Nifty1 | 3rd Feb 22, 11:36am 1643841371

Cafes, Uber, Kiwi fruit picking - there's plenty of work where they can use their skills and get paid under a living wage...

by HouseMouse | 3rd Feb 22, 11:41am 1643841685

You reckon cafes will be pumping with omicron around over the next few months and with less discretionary spending power around?

Kiwi picking and agriculture, maybe, but that has no impact on the city markets (apart from maybe Tauranga?)

by Averageman | 3rd Feb 22, 11:37am 1643841452

We will need more people to fill the gap for all those about to flee to Australia. Here's a hint....don't get sick in the next couple of years. This is why the Govt is so panicked about getting vaccinated. They understand that the lack of investment in this space has turned the NZ medical scene into a revolving door training scheme for Australia. Oh wait....there's a mass pandemic. So sorry, they cant afford to live here as underpaid rent paying slaves for Banker bonuses/ profit and speculator paper gain.The next lot to arrive will do their NZ time and then flee to Aussie as well for the greater wages and lower house prices.

Are the speculators not entertained yet...?

by Zen20 | 3rd Feb 22, 12:16pm 1643843802

Ouch!

by JustAnOpinion | 3rd Feb 22, 1:16pm 1643847412

Some of the speculators are off-shore and likely could care less unfortunately. We have well and truly done this to ourselves...

by nz-it-worker | 3rd Feb 22, 11:33am 1643841202

Just looks like noise in the graphs. With the resumption of low wage immigration announced to put a floor under rental property demand, its just a blip. You really think Labour’s going to allow middle NZ’s primary source of wealth to take a dive? Your dreaming.

by HouseMouse | 3rd Feb 22, 11:38am 1643841534

So you reckon there's going to be heaps of jobs in the next six months in hospo, retail, services and tourism for low wage immigrants to work in?

by tomjones_04 | 3rd Feb 22, 11:39am 1643841569

It’s out of their control now. What tools do they have left to prop up the property ponzi?

They’d need to undo a lot of the recent policy changes and the RB would need to go against what they said they were going to do with interest rates. Open your eyes, no one is dreaming

by nz-it-worker | 3rd Feb 22, 12:14pm 1643843649

What tools do they have left to prop up the property ponzi?

Ummm... population growth ...knee-capping wage growth so the need for interest rate rises is blunted.

by tomjones_04 | 3rd Feb 22, 12:53pm 1643846020

Wow..just wow. Is that the future you want for your country and citizens just so your house sustains it’s ‘value’? If you’d have thrown something about the RB out there… or the CCCFA reform, I’d have gone with it. I think I know what the I stands for in your username.

by nz-it-worker | 3rd Feb 22, 1:14pm 1643847270

You’ve got the wrong end of the stick there. I don’t own a house, and I’d love for house prices to fall, for NZ to move away from its mindless pump GDP at all costs mindset, and its cynical pull up the ladder policies while castigating those who weren’t fortunate enough to be born at the right time.

I just don’t think that’s something that either major party is interested in.

by HouseMouse | 3rd Feb 22, 1:21pm 1643847673

Of course they don't want it, and have done all they can over the last 20 years to prop up the bubble.

But their powers to control the market are not unlimited, and this year will be the year that the piper is paid.

Whether it's a 5-10% drop (as I predict) or something in the order of 20-30%, remains to be seen.

by nz-it-worker | 3rd Feb 22, 1:34pm 1643848471

I hope your right. After all, if it was that simple, the Irish government would have simply thrown the kitchen sink at their housing market and saved it.

But as Bernard has noted https://thekaka.substack.com/p/breaking-govt-opening-borders-to/comments there’s the possibility of 70,000 migrant workers coming in over the next year. Unfortunately the ability to fit houses in plane overhead lockers is limited so some upward pressure on accomodation prices could be expected.

by Rob Reid | 3rd Feb 22, 2:14pm 1643850843

I agree, and expect we will be proved right this year. Opening those floodgates is the biggest remaining trump card the Ponzi administrators have.

Will be a lot of disillusionment among the young hopefuls who come in, but it will string things along for a few more years.

by nz-it-worker | 3rd Feb 22, 2:37pm 1643852266

I think there will be some tightening via the Accredited Employer Work Visa, and the expectation that studying here is a sure pathway to residency may take a small dent. But I doubt there will be any serious reduction in inflows, in much the same way that the campaign promise of a reduction of migrant numbers by 10,000 turned into a record gain of 90,000 when Labour felt the cool wind of declining business confidence in the media.

Language is important. The "migration reset" wasn't rebranded the "migration rebalance" for nothing.

by JustAnOpinion | 3rd Feb 22, 3:34pm 1643855685

I think you are right, 10% seems almost banked in at the moment - but that will only take us back to April last year and still not change a think regarding affordability. I will know FHB's have a chance again when there is a CRASH - 50% or thereabouts.

by tomjones_04 | 3rd Feb 22, 2:13pm 1643850808

My apologies. My assumption was that you were a clone of one or two other commenters on here. I think the government doesn’t want a crash on their watch… it will become their legacy. Their are too many factors at play, the biggest one is access to finance. The pool of money has shrunk and will be getting more and more expensive to borrow. The housing market is now at the mercy of that, wether the government wants it to happen or not, it’s happening.

by nz-it-worker | 3rd Feb 22, 3:03pm 1643853791

No worries.

by Averageman | 3rd Feb 22, 3:59pm 1643857184

Agreed its coming and we wont be bulletproof to the global debt fallout. People are sick of the socialist PC nature of Labour, and their abdication of core values in allowing mass inflation to protect the bank profit/bonus bubble at all costs. Newsflash - bankers and speculators don't, and have never, voted left. IMO their only chance to retain the baubles of power is to actually stand up for their voting block and force the asset reset. Otherwise they are yesterdays toast.

Faffing around consulting on a Capital Gains tax is a WOFTAM. We need the quick and ORRderly implementation of DTi, and vote thru a universal land tax (x4 for people registered as overseas owners). Force a return on land, and punish the lazy land speculators. To long has the way of life in NZ been held hostage thru ever greater debt servicing enslavement, all in favour of foreign bankers.

by tooting | 3rd Feb 22, 4:57pm 1643860673

What's a WOFTAM?

by Averageman | 3rd Feb 22, 5:16pm 1643861762

Waste of (expletive) time and money

by Rob Reid | 3rd Feb 22, 7:11pm 1643868685

Hmm. All I guessed was the expletive.

by rastus1 | 3rd Feb 22, 3:12pm 1643854371

.. except popn growth was not the cause..cheap credit was. We even had an article posed today for those that hadn't caught up with the real culprits.

by nz-it-worker | 3rd Feb 22, 3:32pm 1643855547

Yeah, but different causes come to the forefront at different times. Certainly the Reserve Bank can take a lot of the blame for the latest explosion in house prices, but their actions were similar to many other banks around the world, yet New Zealand had world leading house price growth. If we had run a less aggressive population growth policy the last decade or two; one that was in harmony with the rate of house building, would houses have increased 30%+ in value? I doubt it.

It also shapes the kind of businesses that New Zealand generates, namely a lot of low wage, low productivity SME's, which provide limited investment opportunities. How many more cafes, restaurants and bars does one country need?

by Notgreedykiwi | 3rd Feb 22, 11:46am 1643841989

Life of an Average Joe in NZ.

Can't afford a house

Pay exorbitantly high rent

High Taxes and GST even on food

Levies on everything and more coming

Savings are close to Nil

These articles here are only for those 20% rich in this country who control and own most of the wealth. An average Joe can't afford a million dollar house on an average salary.

The current government has only supported the rich business in making more over the last 2-3 years. My minimum wage doesn't get my anywhere.

Something needs to really change so we become a team of 5 million which is talked about but truth is otherwise.

by Carlos67 | 3rd Feb 22, 12:07pm 1643843264

Dreams are free my friend, there is no team of 5 million its every man for himself, always has been and always will be. In my experience you cannot even get a "Team" together at your place of work with only a dozen people. Got wise a few years ago now, its look after yourself, your family and a few friends. Even a few of the "friends" were out to screw me so they went MIA over the years.

by RickStrauss | 3rd Feb 22, 2:42pm 1643852556

You forgot: "Pay the taxes to fund society so the property speculators don't have to."

by JustAnOpinion | 3rd Feb 22, 3:36pm 1643855796

The property speculators will be paying the taxes lol. I know this is not woke of me but the fact is 30% of taxes are paid by 4% of the taxpayers, the top 4%, the part that will be speculators...

by RickStrauss | 4th Feb 22, 1:41pm 1643935315

Except you just wait one day past the BLT and pretend you never bought for capital gains and...there we go, tax nicely evaded.

by Carlos67 | 3rd Feb 22, 12:02pm 1643842954

Not enough houses at auction let alone selling to get an accurate average house price. We need to see a trend that lasts for months first, meanwhile in another article there is a sudden plan for border reopening, who could have guessed ? Jumping the gun a bit with step 5 as a new variant is expected every 4 months. Returning Kiwis now just weeks away.

by Toye | 3rd Feb 22, 12:36pm 1643844977

Plenty of houses at auction this week. Over half of them are not getting any bids, let alone selling.

Clearance rate this week is running worse than January.

by MortgageBelt | 3rd Feb 22, 12:06pm 1643843197

Borders reopening to kiwis may keep the momentum going in the housing market.

by Carlos67 | 3rd Feb 22, 12:10pm 1643843404

Hole in one MB.

by Zen20 | 3rd Feb 22, 12:21pm 1643844067

Coming soon to a $4 mil fully reno'd Grey Lynn villa .... Charlotte Bellis

by El Torso | 3rd Feb 22, 1:52pm 1643849568

Is she staying? I thought ex pats didn't want to pay for birthcare and just came back to have their kids and headed off overseas again....... NZ is so heartless to them when they have contributed so much.

by Brock Landers | 3rd Feb 22, 2:03pm 1643850222

Isn't it interesting how a couple of years of closed borders has managed to metastasize that latent kiwi xenophobia into something that turns them even on their own people.

Perhaps it would be helpful for Jacinda to cosplay as a kiwi for a couple of days to remind everybody that "THeY aRe Us!"

by JustAnOpinion | 3rd Feb 22, 3:42pm 1643856156

No its not interesting. I am not sure anyone would notice J-dern wearing a brown bird outfit, we don't "do" commenting on peoples looks.

This foreign correspondent has played the Government for fools...like candy from a baby. Come home get on the benefits, soak the crumbling infrastructure for all it's worth but for all that is good - do NOT take any personal responsibility for your own circumstances - that's the kiwi way.

by Brock Landers | 3rd Feb 22, 4:53pm 1643860419

New Zealand. So insular that you might as well be dead if you ever dare get on a plane.

by Toye | 3rd Feb 22, 12:37pm 1643845041

And if covid is no longer a threat plenty will leave for higher wages and cheaper housing overseas.

6000 net negative outflow of people just in January.

by company of heroes | 3rd Feb 22, 12:40pm 1643845255

I think a lot of people have been planning to move overseas for better opportunities, but they couldn't because they are concerned once they leave, they couldn't come back to visit family or not being able to have a backup plan. But now they can...

by Squishy | 3rd Feb 22, 12:55pm 1643846155

The beauty of the New Zealand immigration system is that there will always be someone from a less developed country willing to replace them.

by company of heroes | 3rd Feb 22, 1:58pm 1643849906

Oh yeah, absolutely. People are always replaceable. But the question is down to that do you replace skilled senior engineers with uber drivers or kitchen hand? or another way around? if you replace them with engineers, what makes them stay here? Just have a roof over their head? or be able to raise family and live decent quality of life style? Remember we can say what we want to say to promote New Zealand, but they eventually come and find out themselves. And when reality kicks in, they will make decision that whether they want to stay or leave.

by JustAnOpinion | 3rd Feb 22, 3:48pm 1643856536

Easy, you don't need skilled senior engineers if you are not building anything... And, as you say if people leave, they are always replaceable.

by Brock Landers | 3rd Feb 22, 4:55pm 1643860542

There is an old saying...

"When you import the third world, you become the third world".

by Caughtinthemiddle | 3rd Feb 22, 3:44pm 1643856286

My DHB recently recruited a surgeon from RSA to fill a vacancy that we couldn't satisfy as our domestically trained Dr's were turning down NZ jobs for better opportunities in Australia. The RSA recruit almost pulled out when property prices and availability were advised to be a critical part of their due diligence as they were Auckland bound. That is as a Specialist. If trained surgeons with real estate to sell to set up here can't afford Auckland prices what chance have the rest of us got? Hoping border changes are going to support the current property status quo is folly.

by tomyam | 3rd Feb 22, 3:52pm 1643856723

Haha. I'm a junior dr who married an ICU nurse. Couldn't afford a place so like the commenter above said, the moment the border are open we're off to Aussie. Already got an offer in Brissy. Just needed an avenue to come back and visit the parents.

by JustAnOpinion | 3rd Feb 22, 4:24pm 1643858661

Brisy is awesome, you will love it there! From April 13 you will be able to come and go easily and "quarantine" for 10 days at home.

by tooting | 3rd Feb 22, 5:05pm 1643861131

Good for you. There are more than a few nurses just waiting for the pay equity backpay to do the same, myself included

by Caughtinthemiddle | 3rd Feb 22, 7:18pm 1643869107

All the very best to you and your wife. Our loss, Australia’s gain.

CITM

by HouseMouse | 3rd Feb 22, 5:26pm 1643862388

15-20 years ago, with much much lower property prices and a much weaker kiwi dollar, NZ was a very desirable place to migrate to for well qualified, middle-high / high income professionals. It's a key reason why we got so many English immigrants in the early 2000s.

It's certainly no longer the case, at least in terms of the financial side of things. Now we are counting on our so-called 'superior lifestyle' to attract them in.

Saffas - who would blame them, it's been turning into a shithole of a country for a long time.

The prospect of living in a fairly safe country (NZ) without any good prospect of owning a home is no doubt far preferable to staying in SA where your life is in danger on a daily basis.

by Rob Reid | 3rd Feb 22, 7:32pm 1643869964

Yup, we've pushed our luck too far.

I started running into Saffas and guys from Zim in the 80s. By the 90s I started saying to them that surely SA was heading into the same tube Zim was, and they generally disagreed - they still had hope. But over the last 20 years they are all agreeing - SA is well down the road to hell.

One SA clan I knew just pulled out of AKL - they did the numbers on Brisbane and it was a clear winner for them - 5 high tax payers gone to greener pastures.

by Essen | 3rd Feb 22, 10:13pm 1643879615

I’m sure a surgeon can afford Auckland house prices, whether they consider it good value is another. I know surgeons earning $1m pa + who buy a property each year because they don’t know what else to do with the money. The real issue in your story is that skilled high-value migrants might consider Perth or Brisbane better value and so we won’t fill gaps. This isn’t just because NZ doctors are turning down opportunities it’s also because we don’t have enough capacity to train our own so many go offshore to develop and historically we’ve filled that from the UK. We have got a serious problem in NZ now that even the 1% of young people can’t get on the ladder on their own accord .

by Averageman | 4th Feb 22, 7:45am 1643913913

I know a surgeon who was earning that level and also buying houses. He mega hours 7 days a week to do it. He eventually had a breakdown and struggles to know what day it is. That's his retirement...

by jo147 | 3rd Feb 22, 11:06pm 1643882811

Slightly off topic. I had to Google RSA. I guessed South Africa correctly but anyone know why the country code has the R in it?

by al123 | 4th Feb 22, 7:40am 1643913612

Republic of south Africa

by company of heroes | 3rd Feb 22, 12:37pm 1643845047

Lol, buying overpriced crappy houses here?

by Squishy | 3rd Feb 22, 12:53pm 1643846005

Easing of retail rates and border reopening, this will surely be the final leg of this epic ascent in the housing market. What a celebration of all that is good about bubbles that the humble Kiwi house could become a 5+ bagger over the last two decades.

Sadly I am out of the property investment game and nor am I likely want to be around for the economic hangover.

by HouseMouse | 3rd Feb 22, 1:01pm 1643846481

And probably a minority of them will be able to afford to buy a house at current prices and with higher (and rising) interest rates.

Also, there will be an outward flow as well as an inward flow.

by AJ123 | 3rd Feb 22, 12:54pm 1643846044

No need for premature celebration, borders are again open this govt will not let the property market decline.

by Jonny_Utah | 3rd Feb 22, 1:19pm 1643847550

I’m not sure why there’s this theme that an open border will drive net migration.

Kiwis wanting to return are generally, wishing to pay their respects to lost loved ones and visit friends and family. There will be some returning for Heath reasons and the occasional expat at the end of their lag.

Now that borders are open and Australia is calling for labour, more kiwis will leave.

by HouseMouse | 3rd Feb 22, 1:22pm 1643847746

Tony Alexander reckons there will be a lot of emmigration to Aus.

by Zen20 | 3rd Feb 22, 1:28pm 1643848106

He seems to have become more accurate since independence day

by HouseMouse | 3rd Feb 22, 1:27pm 1643848051

There's about 10 kiwis - friends and family that I consider at least relatively close to me - living overseas.

About half of them, including my brother living in Sweden, desperately want to return home for a holiday and long overdue catch-up with family / friends.

None of them have expressed an interest in returning to NZ permanently.

Many of them think NZ's approach to covid is a bit of a joke, and that the whole covid experience has confirmed for them some of the downsides of this country in terms of mentality.

Obviously this is just one tiny anecdote.

by Brock Landers | 3rd Feb 22, 1:37pm 1643848645

It's quite a reverse culture shock coming back here after spending time in more civilized places.

Bigger than one initially expects.

by FCM | 3rd Feb 22, 1:57pm 1643849870

don't worry house mouse, Covid cases same as yesterday, again no doubling, no 10k cases, no 2 k cases a day. Why the 10 days isolation then? For control I think, but I think the majority won't adhere to it anyway, the government have no resources to track them either, thousands will come back, so why make a policy that can't be implemented, of forgot that's what this government does.

by vman | 3rd Feb 22, 3:27pm 1643855271

FCM, do you not think that the policies are working then...the reason NSW is a cluster f*ck is that they didn't have our policies...the religious happy clapper Perritwit opened everything up just as omicron arrived...NZ learnt from their mistakes and is trying to flatten the curve in attempt not to over whelm the health system and infrastructure in general.

It makes me laugh when people complain that we didn't get massive outbreaks and deaths with the varying strains.The modelers give us the scenarios that could result,but with good management,we have avoided the body bags lined up 10 deep at the morgue.

And before Mr & Mrs Hosking and other ZB sycophants go on about being fearful...it's not fear that drives most people,just common sense.

Just like wearing a seatbelt,a crash helmet or a condom...it's not done out of fear,but educated risk mitigation....

by JustAnOpinion | 3rd Feb 22, 3:51pm 1643856671

Common sense = Oxymoron

by FCM | 3rd Feb 22, 4:16pm 1643858164

Do you not think if 90% plus been dble vaxxed and triple vaxxed then we can stop all the restrictions and get on with it. Or do we live in fear all our life's and still get vaxxed every five minutes. I guess you will be one of the sheeples that said we have 10k cases by Waitangi...guess what we have 143 same as yesterday.

by vman | 3rd Feb 22, 5:01pm 1643860880

No,I am one of the people who think that this government has over all done a good job mitigating the risks resulting in much lower statistics than the majority of the western world.

And re the 'fear" ...read my comment again.

by tooting | 3rd Feb 22, 5:14pm 1643861650

Not too long ago, hospitals were overwhelmed with an outbreak of RSV. The numbers weren't huge but the system didn't cope well at all.

by Essen | 3rd Feb 22, 10:15pm 1643879736

Border restrictions had a role in creating that problem…

by Theoracle | 3rd Feb 22, 9:05pm 1643875524

Totally.

The red Queens emotional propaganda is out of control. Australia didn't even get 50k cases a day. Kiwis must be just so dumb to believe the indoctrination.

by msp | 6th Feb 22, 3:39pm 1644115187

no indoctrination, its simple maths...and we see here all the people who wagged maths AND science class

by Jonny_Utah | 3rd Feb 22, 6:15pm 1643865320

NSW a cluster?

Except that it isn’t though. Stop being afraid and get in with life.

signed Aus based Covid survivor.

by vman | 3rd Feb 22, 8:21pm 1643872915

Newspaper exerpt;

Just six weeks ago, Scott Morrison was railing against mask mandates, QR codes and general government involvement in Australians' lives during the Covid pandemic.

But this week the Prime Minister has completely changed his tune - declaring he was wrong to raise the nation's hopes about Covid, dismissing calls to quickly open the country up to tourists and even backing Western Australia's hard border.

The extraordinary backflip fuelled long-standing criticism the PM has no firm ideology and simply adapts his views based on prevailing public opinion.

by Caughtinthemiddle | 3rd Feb 22, 7:20pm 1643869256

So 24 days of isolation is a top strategy then?

by Happy Cynic | 4th Feb 22, 5:00pm 1643947247

I live in Sydney, its not a cluster f**k - bought and paid for media in NZ are telling that story. Things are moving on here and going back to normal, wish I moved here years ago, great place.

by Hardly | 3rd Feb 22, 4:00pm 1643857211

I for one shed no tears for the people who can’t pop back for a little visit - first world problems.

by dumbthoughts | 3rd Feb 22, 12:57pm 1643846222

"And now, the end is near, and so I face declining values; my friend, I'll say it clear, I owe too much - that's for certain"

by Jonny_Utah | 3rd Feb 22, 1:15pm 1643847338

And more, much more that this, I did it the banks way!

by dumbthoughts | 3rd Feb 22, 1:39pm 1643848788

For what is a man, what has he got? If not a house, then he has not!

by Zen20 | 3rd Feb 22, 2:13pm 1643850810

The Sex Pistols version rules

by jim hansford | 3rd Feb 22, 1:58pm 1643849912

Cynically this will have had a bearing on the border decisions. The ponzi needs more cannon fodder.

by Chris-M | 3rd Feb 22, 8:52pm 1643874773

A few market dynamic basics.

Rising prices, rising volumes = bubble

Rising prices, falling volumes =stable market

Falling prices, rising volume = stable market

Falling prices, falling volumes = crash

by 7jai | 3rd Feb 22, 5:16pm 1643861801

There's a typo in your last sentence.

-7

by Chris-M | 3rd Feb 22, 8:52pm 1643874740

thanks, corrected

by CWBW | 3rd Feb 22, 3:57pm 1643857048

"Prices eased marginally from those recorded in December, which is common, sales numbers were excellent and and new listings were healthy," he said.

(Emphasis added)

Peter is absolutely right! The January results is to expected and is by no means an outlier.

Who needs comedians when you can enjoy that sweet DGM tune from the preceding comments.

Be quick!

by HouseMouse | 3rd Feb 22, 5:28pm 1643862516

Please don't ever leave this website, we'd really miss you.

It wouldn't be much fun if we didn't have the odd person spouting total nonsense here.

by Rob Reid | 3rd Feb 22, 7:37pm 1643870276

You're a dirty rotten troll, but you're our dirty rotten troll.

by Fantastic | 3rd Feb 22, 3:59pm 1643857153

Must be all that lockdown, Omicron scare and tight border security!

by Zen20 | 3rd Feb 22, 4:22pm 1643858553

Did the daddy of Charlotte's pepi get a spot in MIQ?

by JustAnOpinion | 3rd Feb 22, 4:27pm 1643858865

Maybe he wants to come and play politics, the Greens do a good number in foreigners telling us how to do it, be quick!

by 7jai | 3rd Feb 22, 5:06pm 1643861185

Loving this price drop. For those who are selling, I would be happy to buy the properties off you since we are now getting ready to open borders and more people are going to need a place to rent and stay when they emigrate to NZ.

-7

by HouseMouse | 3rd Feb 22, 5:29pm 1643862575

Did CWBW rope you in?

by CWBW | 3rd Feb 22, 5:45pm 1643863539

Going around rodent harassing other people who are saying things different from yours?

7jai knows the power of buying the dip.

Your hopes of buying your second cheaper is long gone.

by Brock Landers | 3rd Feb 22, 6:59pm 1643867943

Should have been hoovering up crypto during the dip a couple of weeks ago.

by HouseMouse | 3rd Feb 22, 7:28pm 1643869726

Too bad that I have done quite well out of shares last 5 years, ey?

by Carlos67 | 3rd Feb 22, 5:51pm 1643863911

Its also kind of weird thinking everyone coming to NZ has no money. Plenty of people want to get here for a better lifestyle and have the money.

by Brock Landers | 3rd Feb 22, 7:00pm 1643868049

Many will just serve out the four year sentence then use the backdoor to Australia for an even better lifestyle.

by HouseMouse | 3rd Feb 22, 7:30pm 1643869855

Really?

Lots of poms came here between 2000 and 2005 because cost of living relative to lifestyle was a good proposition at the time.

Now we mainly get people escaping 2nd / 3rd world misery.

by Luke83 | 3rd Feb 22, 5:38pm 1643863121

Get a quick bargain, hold it, repeat. Wait for all the but that's not fair comments. 🤣

by Davo36 | 4th Feb 22, 7:28pm 1643956121

Easy solution: Import circa 90,000 poor people a year once again. Drives GDP! That's all that matters isn't it? Isn't it?

by Rob Reid | 4th Feb 22, 10:34pm 1643967257

And fills up those rentals.