National auction sales rate lifted to 40% last week

Property / news

Just over a third of auction properties selling under the hammer in Auckland, two thirds in Canterbury

16th Mar 22, 11:19am by Greg Ninness

We are now in the busiest time of the year for the residential property market and that is being reflected in the number of properties coming to auction, with interest.co.nz consistently monitoring more than 400 property auctions every week.

Last week (5-11 March) interest.co.nz monitored 422 property auctions, down slightly from 441 the previous week.

While there were slightly fewer properties on offer last week, the number of properties that sold under the hammer increased from 148 to 167.

That pushed up the overall sales rate to 40% from 34% the previous week.

Canterbury remains the most buoyant market with two thirds of the properties offered there selling under the hammer, compared to just over one third in Auckland.

Around the Auckland districts, auction sales remain particularly sluggish in Papakura where just two propery auctions were monitored by interest.co.nz last week with one selling under the hammer.

North Shore properties had the highest sales rate in Auckland at 45%.

The Northland sales rate was just over a third, while Bay of Plenty had 43% and Waikato just 19% (refer to the results table below).

Details of the individual properties offered 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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32 Comments

by Tee | 16th Mar 22, 11:21am 1647382867

The market ain't dead.

by Narrabeen Boy | 16th Mar 22, 11:42am 1647384179

Waikato only 19 percent on the chart?but article says 40 percent success rate?which was it?thanks

by Greg Ninness | 16th Mar 22, 11:52am 1647384746

Thanks Narrabeen. We've fixed it now.

by lowercase capitalist | 16th Mar 22, 11:48am 1647384502

It's just resting.

by the way | 16th Mar 22, 11:53am 1647384826

Beautiful plumage.

by Toye | 16th Mar 22, 11:50am 1647384609

Dead cat bounce

by Carlos67 | 16th Mar 22, 12:40pm 1647387656

Hardly what you call a crash so far is it ? Even I thought it was going to be worse after the DGM's came out of hibernation and tried to brain wash me.

by Independent_Observer | 16th Mar 22, 1:17pm 1647389867

This TTP speaking or Carlos? (its getting confusing now)

by DDDDebt | 16th Mar 22, 1:59pm 1647392352

Same person. It's clear and obvious now.

I had a crack at some TTP propaganda on the weekend and the only person to defend him was Carlos.

by tothepoint | 16th Mar 22, 2:38pm 1647394719

"The market ain't dead."

Neither is it about to collapse......

TTP

by company of heroes | 16th Mar 22, 11:44am 1647384260

Still looking pretty quiet to me, 35% sale rate for Auckland during the busiest month of the year. The property marketing is truly turning... I was morning expecting 40-50% for these two months due to interest rates are still reasonably low at the moment, the sell-off should start middle or the end of this year by my guess. Last year, the sale rates during Feb and March are consistently above 60%.

Barfoot & Thompson had its best month ever in March | interest.co.nz

by Yvil | 16th Mar 22, 11:39am 1647383998

Sell out?

by company of heroes | 16th Mar 22, 11:44am 1647384243

Sorry I meant sell-off... just corrected my comment...

by the way | 16th Mar 22, 11:49am 1647384595

March much bigger than Feb. Note in your attached link: "March sales were up 64% compared to February".

by HouseMouse | 16th Mar 22, 12:38pm 1647387487

Waikato is interesting. Potential hard landing?

I mean, I get that some of the nice regional cities like Napier have attracted Auckland money. But Hamilton?

It seems really overpriced to me, for what it is, and what is on offer there employment-wise.

by Jonny_Utah | 16th Mar 22, 1:04pm 1647389084

Hamilton is a fantastic place to live and work.

Not sure why you find it surprising.

by General Comment | 16th Mar 22, 1:39pm 1647391182

Speaking of Hawkes Bay...

Havelock North Bayleys auction 4 from 6 sold (single lifestyle offered got a good price, urban prices not so much)

Napier Bayleys 0 of 1 (no bid)

by ikimpaul | 16th Mar 22, 12:47pm 1647388042

Disappointingly (from interest who are usually better than this)- the headline acts as clickbait.

Reading past the headline - every market is in the doldrums and struggling to sell except Christchurch. Auckland, Northland and waikato all have numbers in the 30's indicating poor market sentiment and Tauranga which is the last bastion of price increases in the North Island looks to be coming off the ball.

by 7jai | 16th Mar 22, 2:11pm 1647393100

Those wishing for a housing crash, I'm telling you, it won't happen. I fell into this trap too many times for the last 20 years. Every year after the next, someone said "wait, it will crash", and all it did was keep going up.

Maybe a small pricing correction/adjustment, yes perhaps. But in the long run, it will just keep going up. I learnt the hard way, while many others have surpassed me in terms of wealth accumulation. Especially now that borders are finally opening up and there is a huge back log of people trying to get in, it's going to get even tougher to buy later on I feel. High demand, low supply - that's essentially inflation right? and that is exactly what is happening across the world.

Once again, sharing my own personal experiences. I'm sure there are many on this comment section will disagree, and that is okay. Not here to start a fight.

-7

by Independent_Observer | 16th Mar 22, 2:20pm 1647393601

So the future is going to be the same as the past if your investment theory?

by printer8 | 16th Mar 22, 3:44pm 1647398651

Pessimistic as ever.

You have been scaremongering of an impending property burst for the past seven years now.

You seem unable to get your head around that people such as this is talking about a home being a place to live in, which is long term. In the long term future with inflation and increases in wages, properties are likely to increase. Short term there will be fluctuations which in the long term are not important.

The example above is a consequence of scaremongering by those such as yourself.

Just a reminder of one your many scaremongering posts you seem keen to forget: Indepent Observer 22nd Mar 20, 11:01am . . . I've been saying this on here for about 5 years now. Our property market could well be the mother of all bubbles. It wouldn't surprised me to see a 50% (or more) fall in property prices across NZ.

by mfd | 16th Mar 22, 3:53pm 1647399227

I do not share your certainty. A significant fall in prices has become more and more likely as prices have risen over recent years -> decades, and the risk of a fall cannot be ignored.

I'm not saying a, say, 30% drop is certain or necessarily the most likely outcome this year, but it is absolutely possible and I would base my investment decisions on the chance of this happening, and ensure that I wouldn't be wiped out in this scenario. Similar falls have happened in other countries, and they will inevitably happen in this country at some point. Any investor who is all-in on NZ property needs to learn the value of diversification across assets and geographies or there is a risk of learning the hard way.

In the case of FHBs, my general feeling is if you can afford a place you like and will live in for at least 5 years, then go for it.

by printer8 | 16th Mar 22, 4:04pm 1647399898

mfd

"In the case of FHBs, my general feeling is if you can afford a place you like and will live in for at least 5 years, then go for it".

Agreed.

I however would add that increases in mortgage interest rates (as signaled by RBNZ and bank economists who determine such matters) is the most significant short to medium term concern.

One's bank will have a detailed insight into a FHB situation and in their own self interest will not be lending if there was significant risk for a FHB.

by pdemp | 16th Mar 22, 4:36pm 1647401764

I thought that way too. What is different this time is interest rates have bottomed out. It remains to be see if it will crash, correct or keep going up. My bet is small correction followed by a sustained period of minimal gains. I don't think it will boom again until interest rates have reset and start dropping again.

by Luke83 | 16th Mar 22, 4:43pm 1647402199

Expressing your view on here that the property market is going to be just fine is highly dangerous. I agree with your statement.

by ikimpaul | 16th Mar 22, 3:12pm 1647396740

these figures could be a bit worse next week looking at todays auctions in Auckland

Highbrook : 18 out of 18 passed in. Only 5 with bids

Central 1pm: 6 out of 15 sold - the remaining 9 all passed in with no bids

Central 10:00am : 8 out of 27 sold

the promenade : 6 out of 26 sold - 15 passed in with no bids

so out of 86 auctions - just 20 sold

by printer8 | 16th Mar 22, 3:58pm 1647399526

Yes the property market is turning.

However, a surprising result when considers a couple of possible significant short term headwinds. Firstly CCCFA is widely acknowledged to have dampened the housing market but are to be eased. Secondly, most businesses are currently experiencing a Covid hesitancy severely affecting people getting out and spending . . . and this is likely to also be affecting auctions.

Indications are for some fall but this is not an indication of a crash.

As I have previously posted many times over the past year and a hald, in the medium term high increases in property prices increases is going to be limited to talk reminiscing at the BBQ

by Carlos67 | 16th Mar 22, 4:49pm 1647402598

I think also that there are now tens of thousands with Covid which are all supposed to be self isolating and the Auction room is hardly the place you want to be right now. Its going to take a couple of months to get over the peak, people are now catching this left right and center even my neighbours family have had it. I'm surprised that anything is selling right now to be honest, why not wait 2 months.

by Neonlights | 16th Mar 22, 8:19pm 1647415163

Auctions are mostly done remotely now, so I doubt that is a factor (it could impact people attending open homes, but iso is only a week and it’s a mild illness for most people).

We bid on a few properties last year (didn’t but, decided to stay put). We attended in person purely because we both work close to the Barfoots building. For each house we were the only people bidding in person, and most bids seemed to be coming in remote bidders. Things have changed along in line with mostly remote working etc. I don’t think it’s a big factor, it only takes most people out for a week.

by Officebound | 16th Mar 22, 7:24pm 1647411891

Interesting to see properties regularly selling under CV in Auckland now, seems the CV's dated July-2021 have captured full mania in land prices, which just isn't there anymore.

On another subject, a house I admire is about to go on the market, did the numbers on it's viability as a rental.

It has rental potential of $900 a week, Rented 52 weeks a year, with a 4.7% Interest only, borrowing the full amount, no tax deductions on interest costs, and $5k a year for rates/insurance, purchase price would need to be $583k to be cashflow neutral. That's without vacancy, maintenance, water, or the many other things that can happen.

18 months ago it sold for $1.3m.

Warning. Chaos ahead.

by Brock Landers | 16th Mar 22, 10:05pm 1647421515

Lol. Only doom goblins do maths.

by Averageman | 17th Mar 22, 7:39am 1647455946

Sounds like the classic Specubox. Wait till DTi arrives, and assume 6x income for maths. It then requires $1m in equity...