There was a slight drop in the number of properties being auctioned and in the overall auction sales rate in the last week of February.
Interest.co.nz monitored 375 residential property auctions from around the country last week, (February 19-25), which was down very slightly from 386 the previous week.
Of the 375 properties auctioned, sales were achieved on 139, giving an overall sales rate of 37%, down from 41% the previous week.
However the slight drop in auction numbers and sales was not significant.
We are now firmly into the peak selling season for the year, so a little but of volatility in the numbers from week to week is to be expected.
However if the decline continues over the next couple of weeks, even at the modest rate of the last week, that could be a signal of further cooling in the market.
Around the main centres of auction activity Canterbury remains the most buoyant with an overall sales rate of two thirds, while Waitakere in west Auckland had the lowest sales rate at 24% (see the table below for the district summary).
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74 Comments
Don't worry, cashed up overseas Kiwis to the rescue!
Lol, enough cash for over million dollar houses? You must be dreaming.
What's a million when you can sell a small London apartment for 1 million pounds? What about a 10 million NZD tiny apartment in Beijing?
Goodness you must live in a cave.
And NZ is bigger than a cave as compared to the whole wide world? A different perspective for sure.
I just sold up in Surrey, not sure you have been there recently, but not going to have enough money at NZ house prices, its why I am starting a business. Leave the UK to come to a good life at the beach in my jandals learning to wing foil. Build up the business and get out of the rat race away from the city. Who wants to get into debt do all the hard work in the city and get back into debt in NZ and back in the rat race, sitting around talking about boring stuff in meetings. Better ways to spend your cash and have a better life.
I think your talking about 0.0001% of the people returning. Most with that cash and assets are never coming back.
Jafaland is one of the best places to wingfoil... and kite... and windsurf... and develop a business. It has so much to offer, provided you have some disposable income and time to spare
Exactly. Thats why I looked for something suitable, cashed up house and investing in my business which I explained below is ecommerce business. Wanted to live at the beach barefoot.
Got a caravan in Whitianga for the kids, just bought a wing and mountainboard to practice before I get the foil which I will get next summer. Business is taking a bit of cash at the moment so just consolidating to get things going. Hopefully middle this year or next year things pick up. But its great to do stuff when you want to, like foiling, can't wait to actually get going.
swapacrate,
I wish you well. I left the rat race when i was 57, then was lucky enough to move here from the UK almost 20 years ago when house prices there were higher than here and the NZ$ was 3 to the pound.
My younger son lives in Auckland in a nice but unremarkable house in Meadowbank, currently 'worth' some $3m!! It's crazy. Even $2m would be overpriced. Why would many professionals choose NZ with these absurd prices? It might be the sun, but certainly not the salary.
It's crazy. We've been living with this bubble so long, people have lost perspective on how we stack Up globally. I think some of that narrative is now changing though.
UK/EU was always good to me and my family when we were there. Glad we not in UK schools though. One thing nz does better than most.
Cheers linklater01, its definitely not the salary, I searched for a business before coming home, found ecommerce business which I can do from anywhere, didn't want to come back and get stuck in traffic, and pay overinflated prices, so moved to Waiuku where I'm from originally, I was an IT contractor in UK. DTI was 3 to 1 which was doable in UK on contractors wage, but 7 to 1 or whatever over here is nuts.
Pity your younger sons and the next generations. But there are some businesses out there that may be doable, like the one I found, takes some ground work can do while working, definitely not get rich quick, but once you lay foundations, its a great way to live life. Work from anywhere, do your own hours. No corporate meetings and best of all you can travel.
Hope things get better for other people.
A million pounds would be a high end luxury apartment in London.
Houses in London where the normal people live are cheaper than in Auckland.
Your narrative has not survived contact with reality. Delusional.
Meanwhile, back on Planet Earth...
The average property value in London hit a record £521,146 in December 2021
My former two bedroom maisonette with large garden on the Zone 1/2 border is currently valued at just over £650k.
Plenty of very central London apartments on there. One for $2.7m NZD, another one for $1.5m NZD, both roughly 5km from London Central.
I guess people might want to sell up their central London properties and buy in little old New Zealand. Also a big assumption that those property owners do not have mortgages that would need to be discharged on sale.
Indeed. There are pockets of ultra-wealthy London. But it's not hoards of "cashed up kiwis" living there.
Most of London is much more normal. My aforementioned former flat was only a 3km walk from the London Eye.
Err... Mr Frank... I think it maybe you that lives in a cave if you not seen or heard what is happening in the China/Beijing market?
Vendors that purchased in the last few years may soon stop going to auction and try to sell 'off-market'...
Where is the plummeting of house prices that so many here have been promising for so long?
TTP
Don't worry, the Feb figures will be out soon.
And March, and April and May...
“And March, and April and May…”
Which year?
TTP
It could happen. Last year was abnormal, business and wage subsidy, no overseas travel, and speculator life support OCR levels all protecting leveraged debt and businesses that should have shut down. All three have changed. A lot. Sure cashed up overseas people are returning, but they are a small part of the market and only interested in the higher end.
Dropped -4.6% in December and January right?
That means they are plummeting at an annualized rate of -27.6%.
“- 27.6%.”
Shonky.
TTP
Is it only shonky because we're on the ride down?
Tim, it sounds like you're a primo DGM to me...
Opportunities abound everywhere soon enough. That's what you should be saying right?
House prices have not dropped. House Price growth has eased.
Using your "logic" Auckland prices would still achieve 15.6% growth this year and Northland would achieve 31.6%.
New Zealand Herald: Northland housing prices crack $900k after strongest quarterly growth across NZ.
https://www.nzherald.co.nz/northern-advocate/news/oneroof-northland-ave…
Whether prices have dropped or risen depends on what time frame you are measuring over.
So far, you are still referring to price growth not "prices"
If price growth has been negative, which it has been in certain areas in the past month, then prices have fallen but if measured over a longer period, say 12 months, then prices have risen.
Actual house prices have not yet declined. The rate of price growth has.
Actual house prices *have* fallen at a national level for two consecutive months (Dec and Jan), based on the REINZ figures which are the best timely measure.
The nationwide average property value rose 4% to $1.101 million in the three months to the end of February.
Yes, the reinz data when it comes out will be more current and will likely show a further fall in the rate of growth.
I can imagine "The Way" angrily shaking his fist as an empty auction room that prices aren't dropping. Growth has merely eased!
I'm not advocating for higher house prices. I'm just stating the fact.
I have never bought at auction and don't imagine I ever will. So yeah, won't be finding me there.
Prices are now falling in the parts of New Zealand that matter. That a fact.
OneRoof is a fact free zone. It does not bolster credibility to post links to there.
The growth rate has fallen.
That is a fact.
Look at the growth rate for the last 3 months only... while too short to predict a trend it gives the most accurate 'current state' of the market
Looking back at the last 12 months means nothing if a market has turned.
You'd have to look a lot shorter.
In the 3 months to the end of Feb (ie; yesterday) the nationwide average property value rose +4%.
https://www.1news.co.nz/2022/02/10/house-prices-continue-to-increase-sl…
You posted an article from the start of February.
QV is a lagging index based on settlement dates.
Yes please only use REINZ data. QV is so lagged.
The data is current to end of Feb (ie; yesterday) reinz data will be along soon.
Yes, and the article shows 6.1% growth to start of Feb. Now at the end of Feb the growth rate is 4%. Showing a decline in growth.
To The Point of sounding like a broken record...
“It’s always sticky on the way down……”
Then why do the DGM keep promising a crash? 💥
I’d like to purchase a small Ponsonby villa for a song…… But it ain’t going to happen. ☹️
TTP
Why not ttp ? .....that is not the sentiment of our resident property bull ? as you are always saying "get in there- never a bad time to buy" !
That recently tastefully renovated 3 bdm character villa is just waiting for you in those leafy Ponsonby Streets and why not, as you yourself know, it's a fantastic investment !
In fact, a man of your standing should be looking at St Mary's/Herne Bay - not little old Ponsonby
So to say ".....but it ain’t going to happen" is a little bit DGM to me .....I am now confused, as you are edging towards being a DGM
C'mon man ! Keep the property market burning hot ! ...Lead by example and purchase that beautiful villa - it's waiting there for you now so BE QUICK !
Hi Crazy Horse and Crash Crusader (and others),
Clearly, neither of you have read my contributions here over the past several months.
If you’d read them, you’d know I’m predicting a soft-landing.
I derive little pleasure from corresponding with ignoramuses……. Suggest you get up with the play.
TTP
TTP ......."I derive little pleasure from corresponding with ignoramuses....." ...well mate, this "ignoramus" has plenty of 'dry powder' immediately available and left the NZ market 5 years ago ....ever heard the expression the "smart money" has left the market.
Yes, I have read your posts over the last few months and yes, we may be in for a "soft landing", but in my view there are too many variables at play outside the NZ market/economy for it to be a soft landing - but we are each entitled to our own particular viewpoint.
While I suggest you refrain from childish name calling - play the ball, not the man.
We are nothing if not emotional creatures.... so the sky is falling in if you're a real estate franchise owner or agent... as there is nothing but doom and gloom in the sales caravan on a Monday morning after a weekend of empty open homes and no interest... with the prospect of further empty auction rooms in the coming weeks and months
Can't really picture a meat and three veges bloke from the regions in Ponsonby...
Compared to January, February’s average asking prices decreased by 1.3 per cent in Auckland, 2.7 per cent in Waikato, 3.1 per cent in Hawke’s Bay, 3.8 per cent in Nelson & Bays, 2 per cent in Coromandel, 2.3 per cent in Wairarapa, and 6.2 per cent in Central North Island.
https://i.stuff.co.nz/business/127913166/asking-prices-for-homes-fell-i…
Keep up the trolling mate!
What an inane comment to make.
The decline will play out over months, not just one month.
i thought average prices have fallen Dec 21, Jan 22 and probably Feb 22. Well that is what has been reported anyway.
in fact we are down $100k since Nov 30th. Not sure many can save $100k in 3 months. See link below
https://www.interest.co.nz/charts/real-estate/median-price-reinz
The sale of that property in 2017 was entirely above board. Nothing to see here. Move along.
yeah from the very PM who claimed there was no evidence of Chinese money pushing up the NZ property market - and who does he sell his mansion to?
It was sold for a way above market price then left empty for years. Squeaky clean.
To be fair, who knows what the true market value of such a property is, it's not exactly a liquid (or rational) market at the top end of town.
Generally though, I do wonder how effective PRC capital restriction measures have worked when it comes to their diaspora. Whilst it wouldn't necessarily be considered dirty money from an NZ perspective, I understand PRC capital flows are restricted to US$50k per annum per person.
while none of are allowed to say there was hot money coming in from PRC, we all know it was happening. The question now is, will it still be there in 6 months time in light of the PRC property bubble bursting as we speak. As they say "when you in trouble, you sell what you can, not what you want" Is it possible that much of NZ property falls into the "sell what you can" category for Chinese investors (who apparently had nothing to do with inflating our bubble - nudge nudge wink wink)
Payment for services rendered.
A birdie has told me he resigned because he was forced too. He was caught doing something he shouldn't but was not charged. Others involved were charged. Apparently there is reporting on the matter when it was in its early stages and court documents relating to it all.
Unfortunately said person won't tell me more for obvious reasons. Might have to get him drunk..
LOL, you probably buy into all the current rumours about the PM's man too......
There's something fishy about him.
Dirk is that you?
"Peak" season.
More like "peak" market.
From a FHB Facebook page (ironically)
Hi Everyone,
I've been trying to sell my house for almost 8 weeks now. No one can understand why it hasn't sold yet. Homes.co has it valued at $920k and we've dropped our house to an asking price of $769k and still, nothing. We'd love for it to go to a first home buyer.
My question is, when looking for a property do you ignore the older listings? We put our house on the market just after Christmas and we are worried people will just assume there is something wrong with it? Or is it just the effects of the lending restrictions? Thanks
Homes.co has it valued at.....
🤣🤣🤣🤣🤣
I imagine them every night after dinner firing up the laptop to check their homes.co value.
"Babe! Babe! Come quick, look at the value!"
Homes.co values can be updated by simply sending them an appraisal from a RE Agent. The whole thing is a farce. I got several emails from Ray White during the last lockdown offering this free "service"
Yep - not many people seem to know that RE agents can set the homes.co valuation if they pay the $99 per month premium subscription fee
Homes.co is a marketing farce. I stopped paying attention when the started restricting access to the actual selling data. Perhaps they should start listing the highest bid at failed auctions, but pigs might fly and Mr Orr would start doing his actual job of controlling inflation...tui.
Only Canterbury still going strong
Go The Man (2)!!!!
I'm sure he would have done really well for himself over the last few years
One of the main reasons why auctions have fallen away is that vendors have wisened up to the rort that auctions have now become. Say you're auctioning your property and it doesn't reach the reserve; the agents will then take you into a little room, surround you, sit on top of the surrounding desks facing you while you are sitting lower in a chair in the middle; then the spiel comes thick and fast from the agents browbeating you all the while to lower the reserve. Confused and fatigued you eventually give in and the agents quickly move to the highest bidder and say the vendor has accepted your bid, ( this actually happened to a friend late last year).
One of the main failings of the current real estate industry is the compressed time scale they lead every vendor to sell their property within. This situation ensures a sale, which is the best outcome for the agent irrespective of whether the price meets the vendors expectations which have probably been determined by an online valuation site such as Trademe or Homes.co.
Yeah seen that exact strategy play out at auction, it's straight intimidation & manipulation... no idea how it's legal for RE agent to act in such a manner.
Misrepresentation high to get the listing. Then push seller to take the actual bids. Agency 101.
Sellers may need to realise that their house may actually not be worth what agents and homes.co say it is. Debt based funding that actually factors in reality like your income and spending puts a ceiling on most people's ability to support the peak bubble.
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