The number of properties auctioned by Barfoot & Thompson continued to increase last week but the number sold at auction declined.
The real estate agency, the largest in the Auckland region by a significant margin, marketed 215 residential properties for sale by auction last week (19-25 February), up from 205 the previous week.
However the number of properties sold at auction declined to 63, down from 67 the previous week.
That saw Barfoot's overall auction sales rate drop to 29% from 33%, leaving 152 properties that were either passed in, withdrawn from sale or that had their auction date postponed, with post-auction negotiations now playing a critical role in the sales process.
Within the Auckland region, the districts with the highest and lowest sales rates were both on the region's southern fringe, with Papakura recording zero auction sales and Franklin recording a sales rate of 50%.
The table below shows the aggregated results in each district.
Details of the individual results achieved at all of the auctions monitored by interest.co.nz are available on our Residential Auction Results page.
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62 Comments
Looks like the quality family homes are clearing, but the bottom end of the market has come to a grinding halt
I hear developers are finding it harder getting pre sales and getting the required finance to settle land
Of course, no surprises there. I've been saying for months residential development will eventually slump this year, both because of issues for buyers but also for developers, in terms of finance.
Given the omicron surge and the general dampening of spirits across the nation, today’s result is pretty good - certainly better than I’d anticipated.
TTP
Not to mention the auctioneer wasn't holding his tongue right in his mouth this week, and the phase of the moon is all wrong.
Looks like prices really are dropping. West Auckland property with a Homes valuation of $1.49M sold at auction yesterday for $1,020,000.
https://www.barfoot.co.nz/property/residential/waitakere-city/west-harb…
It looks like a leaker, those sort of properties typically sell lower due to the stigma...
It has got decent eaves and is described as well cared for. Would most buyers think it's a leaker?
Family Home or Develop
Develop implies something...
"Develop" implies you can get 3 or 4 terraced houses on there!
Easily at least 4 or 5, and possibly 6 or 7 when the RMA changes come through in August.
Eaves only go so far in terms of leakers - looks like one to me - and yeah you'd think it would sell for quite a bit more with that land area, probably at least $1.3 - $1.4 mill.
Question - if it is a leaker (we don't know for sure), should the agent be disclosing it in the summary description on the website? Or can do so separately, eg. if people enquire?
That probably says more about homes.co.nz valuations than it does about sales prices.
Exactly. If I thought we could get what homes says this place is worth I'd have it on the market already. Homes $1.3m, but everybody else (bank, one roof, trademe insights) are at ~$1m.
Yep, their algorithm is all over the place
https://homes.co.nz/address/auckland/hillcrest/1-7-cobblestone-lane/Mpk…
Saw on stuff an article talking about 7a cobblestone in hillcrest and how it was a great sale (article was post conditional) at something around 1.6m. Homes has the midpoint at 2.03m and low end at 1.87m.
Maybe there is some issues though as next door of the same style is for sale too, and didn't come across as being same owners.
That website is pants. Their valuations mean nothing, usually 20% too high.
Actually it was good before prices started dropping. It was usually right within 10% up and down. Now its estimates are anywhere between 15% and 30% over actual sale price - completely useless. Same with oneroof.
Really? Even in October - November last year when I looked at it a few times I thought it was over-estimating by about 20% (give or take), consistently.
I just checked, our place is now at $1.15 on their website, had got up to $1.25 a month or two ago.
I think we'd be lucky to get 950K if we tried to sell now.
And our neighbour's place, pretty much identical to ours - they have that at 850K! How does that work????
Where is the credibility in that?
One Roof much closer to reality I think - 860K, with a 'high' valuation of 960K
I'd be confident of getting around 900-920K.
Sold for the land value only by the looks of it. We probably need examples of weatherboard/brick houses to draw any conclusions.
Fairly spruiker-y agent email that I read largely for amusement value saying -10% from Dec on the Shore.
Monoclad potential leaker you cannot give these away now they are worth land value plus a bit.
If you have a detached one on a decent piece of land you are obviously in a far better position than one in an apartment block or row of terraces
There is no "Better Position" for one of these, trust me I owned one in Auckland. Your buying it "cheap" hoping like hell it lasts 15 years and at that point it will cost you about $100K just to demo it and rebuild on a section that has hopefully doubled in price. Its a gamble.
Lucky it got that, I wouldn't pay $50 for it
It's the land.
Any person with hard earned own money and who cares about how they earn it would not go into an auction at this time. So who's really buying at auctions?
Probably a good idea to check the source of this auction money. It will certainly get really some skeletons coming out of the closet.
But there are certainly some cunning RE agents and some gullible buyers who fall for their tactics. How do these RE agents get sleep at night or they have no self respect or any kind of human emotions left in them? But as it's said, they will reap what they sow.
The central problem with real estate agents is that one often doesn’t know which ones are trustworthy and which ones are not…..
It’s the same as with hifi salesmen and used car dealers.
TTP
We should refer to real estate agents as used house dealers.
It is true that one often doesn't know which ones are trustworthy and which ones are not.
But we can avoid the ones that are known to be untrustworthy. Property Brokers, for example, has been fined by the commerce commission for their business practices and should be avoided like the plague.
Property Brokers has a big red flag flying above it.
I certainly endorse your advice above, Brock Landers. I'd steer well clear of Property Brokers - it's a badly tainted firm.
There are always plenty of other agents to choose from. Or better still, buy/sell without using any agent - and avoid the stress that agents create. Avoid their hefty commission too!
TTP
Tip. Ask a local Valuer who the good agents are. We analyse their sales and hear from their clients day in day out.
NGK
"Probably a good idea to check the source of this auction money. It will certainly get really some skeletons coming out of the closet".
Any evidence for this need, or just you going on again with your conspiracy theory?
Bank and finance companies, lawyers and REAs each have a responsibility under legislation to make sure the legality and source of money for all transactions. If a bank, lawyer and REA is considered to be acting knowingly or recklessly, they can be convicted of a criminal offence and fined up to $5,000,000 if a business, $300,000 if an individual or face up to 2 years in prison . . . and loss of license.
If you have any experience at all in in property transactions or transfer of money (seemingly unlikely) you will be well aware that the required information is very detailed and that the legislation is considered very effective. The increased number of drug prosecutions since the legislation became effective reflects this.
NGK
If you think that no anti-money laundering checks are being carried out and that penalties are a toothless tiger: a lawyer was sentenced to two years nine months imprisonment. Not only the two years nine months, but also there goes his practicing certificate barring him for the future and all those years of university study down the drain.
Printer mate, I guess you are either a RE agent or have big personal investment there.
And now a big eye opener for you. If the real estate agents and companies were honest then they wouldn't have been fined $4mn.
https://www.nzherald.co.nz/business/hamilton-real-estate-agencies-fined…
There is big corruption in this Real estate industry mate and everyone's scratching each others back. Even politicians keep saying house prices shouldn't come down. Why do they do that? What's their real interest?
You just keep living in your well and think that's the whole world.
NGK
Well that just goes to show legislation works and prosecutions result. I would think that a fine of $2.1m for one agency for price fixing, or nearly three years imprisonment and loss of practicing certificate and years of study for a $18,000 fee relate to AML are pretty powerful message from the courts as a deterrent for any REA or lawyer (clearly the courts think that).
You just keep up with your baseless conspiracy theory. Just as baseless as your assertion that I’m a REA - assumptions are not a good basis for making assertions as being fact.
Mate. I didn't say it's not working.
Anyway.. Be happy. Enjoy your life.
He’s ex property investor association and children with multiple rental properties (if looking for bias)
IO
Great for you to point that out - thanks. All it says is that consequently I have some experience and a bit of knowledge gained over a period of 26 years.
Just to correct you. As previously posted; I got out of The Property Investor Association back in about 2005 as I was concerned that both speakers at the local meeting and their magazine was about considerable leveraging in a period of a buoyant market. Didn’t surprise me that within five years later that a large number of speakers and the magazine’s role models went bust when conditions tightened.
NGK
Likewise.
A query; how much experience have you had buying / selling property and transferring reasonable sums of money?
I have plenty of experience in the corporate circles and government circles to provide my feedback.
Not sure where you have worked but truth is that "you scratch mine and i scratch yours is rife in our country"
Most corrupt industry is RE industry. The real parasites which if taken out would help kiwis 100%.
NGK
Great.
As far as I am concerned REA work solely in their own interests to get a sale and therefore a commission. As long as one remembers this when either buying or selling and you can critically look beyond there spiel (ie having a bullshit filter) there is no problem.
Successful investors (I have been out just on six years) - and FHB I have been involved with ie my four sons - cultivate REA to their benefit ; so yes, there is a mutual beneficial relationship.
Those who post on this site who consider REA are simply scum are naive and are likely disadvantaging themselves; they would be far better picking a few agents, cultivate them, and get them working for you.
It’s just like any other business relationship.
I am not a REA.
I know you are nothing but just greedy. I am confused if i should laugh or feel pity for you on this last post. Wow your thoughts and all about having an advantage and having a leg up on other fellow kiwis. Really what a person.
Hope you get satisfied from your greed one day and might be able to enjoy life. I mean with satisfaction but you won't get there with your thinking.
Hands are always empty when we are born and when we die
NGK
Ease up! :)
A self-entitled spurious argument. Using the same spurious argument one can argue that investors are providing a home for those with a need. Here in the HB there is a great shortage of rental accommodation.
Property investing is exactly like any other business in this country with a free market. No different to investing in a supermarket or any other business where one provides a need or service and makes a profits from their efforts and/or investment.
Your post sounds pretty bitter - yes it is tough for FHB such as yourself. Just don’t let your frustrations become baseless rants - which many of your posts are.
I wish you well, but simply blame-shifting is not constructive to addressing one’s problems and needs.
As to me enjoying life; thanks for the concern but don’t worry. I’ve been retired six years and I am both very happy and comfortable as a result of forty years work and sound financial decision making.
Be happy that you provide.
Enjoy your time on this planet and contribute if you can. It's a miniscule period of time compared to 4 billion years of this planet.
Retired and still in here. Seems like not satisfied in life. How can be. Greed!!!!
Greed can never be quenched, no matter what.
Cheers
NGK
If it makes you happy; as posted above I got out of investment properties when I retired six years ago.
I’ve got a variety of other investments that allow me to lead a comfortable life. And don’t call me a parasite/greedy on that basis; exactly like every aspiring FHB with investment in either KiwiSaver, term deposits or shares.
I didn't call you anything really. I don't judge. I just say what's the truth.
But in human nature there is a thing called guilty conscience. It does weird things to the brain.
Bubble bubble toil and trouble.
Getting those sales across the line is requiring deeper and deeper discounts. But hey, the pro-property on this forum may soon be arguing a 50% drop is nothing if they've risen by 100% investors still better off. Smart.
Be Qwuck.
I was wondering what the year on year changes were so I googled and found this
https://www.interest.co.nz/property/109333/barfoot-thompsons-february-s…
I really think we are headed down over 20% here. All the factors that are required for a steep correction are now there.
-10% is a correction.
-20% is a crash.
-30% will leave a lot of people in the trash
-40% is worse than a rash?
I have predicted 5-10% but yes I think it could easily be at least 15-20%.
In real or nominal terms? 5% inflation and a 5% fall, were already in correction territory in real terms and the mortgage pain has barely hit yet.
I always talk in nominal terms.
Going to get very interesting in real terms if inflation doesn’t go away, but central banks can’t raise rates per your thinking without killing the economy (which I generally agree with you upon)
It's going to be a VERY interesting year or two.
It's an extremely nasty economic cul de sac we find ourselves in. Most people I speak to seem quite oblivious to it.
Although I speak in nominal terms, I agree with your interest in real values - very relevant in a time of high inflation especially.
Jan to December 2022 7% increase, slump will slow down once Omricon buggers off, net migration will increase, inflation will be normalised and developers will return.
I wonder when those gates will open.... JA claims to be ignoring the protesters. Will tourists have to isolate even though nz is riddled with the virus. I see even USA is warning their citizens not to travel to omicron-roa NZ
As in one of the comments I have said a couple of weeks back, even if 1 property will be sold out of 23 in one of Auckland auction days, the results will be 27% + or - 5% in the coming weeks and that is what happens.
27%, 33% & now 29%
I thought RBNZ is good at managing the data but B&T is also doing a good job. By the way, if 29% is not good then it is not bad either.
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