More properties on offer at Barfoot & Thompson's auctions but sales rate almost flat at 22%

Property / news

Sales rate particularly low for properties in west Auckland at Barfoot & Thompson's latest auctions

26th Mar 22, 6:00am by Greg Ninness

There was a slight lift in activity at Barfoot & Thompson's auction rooms over the last week (19-25 March), with Auckland's biggest real estate agency auctioning 201 residential properties for auction, up from 181 the previous week.

The number of properties sold also increased, to 45 from 38 the previous week.

That left the overall sales rate almost unchanged at 22% compared to 21%.

The sales rate was particularly low for properties in west Auckland, with sales achieved on just 5% of the Waitakere properties on offer.

Properties on the North Shore had the highest sales rate in Auckland at 33% (see the table below for the full district-by-district results).

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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104 Comments

by Carlos67 | 26th Mar 22, 6:48am 1648230481

Looks about right to me, the less desirable places to live are taking a dive. Not even an opening bid on similar properties down here in Tauranga but the more expensive areas that are "giant rest homes" for those with $1.5m are still selling with the retired money heading south. "Rental" type properties are trying to bail out of the market. Overall its hit a brick wall, just to much uncertainty with interest rates and the war. Sellers still wanting top dollar on properties I'm looking to buy.

by HouseMouse | 26th Mar 22, 9:14am 1648239242

Still picking small gains for Tauranga this year Carlos?

by Carlos67 | 26th Mar 22, 7:15pm 1648275314

Its looking that way but only for my house cos its speshul

by tothepoint | 26th Mar 22, 12:43pm 1648251784

A "flat market" is exactly that - flat. Just as expected after a lengthy period of buoyant trading.

The DGM are attempting to mislead and deceive us (as usual)....... The housing market is not "nose-diving", "tanking" or "collapsing" - it is too resilient for any such outcome.

Rather, a soft-landing is now underway.

TTP

by Amokk | 26th Mar 22, 12:52pm 1648252331

Save your tears Tim. You’ll need them.

by Brock Landers | 26th Mar 22, 4:22pm 1648264936

Soft is an understatement. What we have here is limp, flaccid and dying 🥀.

In kiwi parlance, the housing market is goneburger 🍔❌ and the phoney economy is likely to follow 💥.

Astute minds are now asking what kind of career and life they could have in proper first world countries like Australia 🦘 or the United Kingdom 👑 for the same price as a dump in Ranui 🤢.

The bleak financial outlook and promise of racist "co-governance" will make the choice pretty clear for most skilled professionals ✅ ✈️.

by tothepoint | 26th Mar 22, 2:17pm 1648257443

People such as Brock Landers, Retired-Poppy and DDDDebt are extremists. They fail to contribute well-reasoned, measured comments here.

Rather, they attempt to fabricate that there is a crisis in the housing market - to induce people to sell houses, en-masse.

Seasoned house owners can easily see through their biased thinking and related mischief.

Those who are less experienced with the housing market should be extremely cautious. Take advice from someone who you can really trust: perhaps a parent, grandparent, registered financial advisor, or family lawyer/accountant. Also, be very weary of real estate agents...... Otherwise, you risk being duped.

TTP

by DDDDebt | 26th Mar 22, 2:57pm 1648259844

"Seasoned house owners can see easily through their biased thinking and related mischief"

Seasoned house owners want prices to fall. 77% of kiwi's do, because they know that we've engineered a housing crisis that is causing major societal harm and no opportunity for the next generation.

https://www.1news.co.nz/2022/01/31/three-quarters-of-kiwis-want-house-p…

It's only those with heavily biased interests like you that are trying to stop the market falling to more affordable levels. It's out of your control Tim, unless you are the one that sets interest rates and the cost of debt - the basis of affordability.

Sadly, too many people were duped by property industry leaders like you and muppets like Ashley Church who said in mainstream media that interest rates are going to stay low for 20 years. They were at emergency levels FFS.

Now they're emailing him in panic asking him what to do. His response - "I’m not a certified financial adviser and my commentary tends to be at the macro, rather than micro, level"

What he should be saying is 'sorry, i'm just paid to pump the market'

https://www.oneroof.co.nz/news/ashley-church-four-ways-to-beat-housing-…

Those less experienced need to understand why we are in this situation. It is not unique, it has happened before. In time, it will be written about here to.

https://www.researchgate.net/publication/263725836_The_Role_of_the_Medi…

by lucenera | 26th Mar 22, 3:06pm 1648260385

The Ireland paper is a very nice catch, thanks.

I used to keep mentioning Ireland to peps stating how safe are properties. I always been told that #NZ-is-different.

I only hope people will be burned enough to remember, this time.

Side note... somebody keep indicating people that believe we reached a mathematical limit as DGM.

I believe that Doom and Gloom are results of an overinflated cost of a primary necessity.

The ones cheering for higher house prices are the real DGMs.

by DDDDebt | 26th Mar 22, 7:04pm 1648274699

No probs Lucenera

The Ireland paper is a heavy read, complex, political, but references well the vested corporate influence on mainstream press in ultimately helping create the bubble that burst. The simple takeaway being:

"It is shown that prior to the bubble's collapse, the media made little mention of it, remained vague about it or tried to refute claims that it even existed, thus sustaining it"

Does that sound familiar?... or somewhat mild compared to our situation.

Our supercharged example is this: Oneroof is the property platform of NZME. NZME also own NZ Herald, NZ's most read News app.

Have you ever noticed how every day two (in 2020 it was three) pro property Oneroof articles appear in the top 30 of articles of your herald app?

Ashley Church provides the bulk of the stories refuting claims of a bubble, crisis or impending crash. Everything he says is to pump the market to greater heights.

"If I look back over my various OneRoof articles over the past few years, it’s apparent that a sizeable proportion of them are about the possibility of a housing market crash – or, more accurately, me responding to claims that a crash is imminent by reassuring readers that it isn’t"

https://www.oneroof.co.nz/news/ashley-church-everything-you-need-to-know-about-house-price-crashes-in-nz-39812

"For all of these reasons, while it’s likely that the end of mortgage interest rate drops will slow house price inflation in the future, it’s not likely to happen any time soon. In my opinion, it could be as long as 20 years before we start to see any impact from this change in market conditions"

https://www.oneroof.co.nz/news/ashley-church-if-mortgage-rates-hit-zero…

"One thing is certain though. Mortgage interest rates are going to stay lower, for longer. Of that, we can be quite certain"

https://www.oneroof.co.nz/news/ashley-church-could-mortgage-interest-ra…

https://www.oneroof.co.nz/news/search/Ashley%20church

by lucenera | 26th Mar 22, 9:01pm 1648281667

Oh, yes, there are so many similarities that is almost hilarious.

It is a very interesting read indeed.

I could understand (even with immense disappointment) that there is a specific agenda in trying to pump the housing market, or at least now to avoid panic selling.

What I don't get is how is it possible to defy pretty the simple maths that screams what is going to happen. I mean, how can people still believe in those bs?

I guess is me being naive... maybe, but in my world 2+2 is still 4

by Market Interest | 27th Mar 22, 9:57am 1648328250

In the United States, one empirical study found that in the years prior to the crisis, the American media can be described as ‘the watchdog that didn’t bark’ since ‘the business press institutionally lost whatever taste it had for head-on investigations of core practices of powerful institutions’ (Harber 2009; Starkman 2009: 30)

That's the quote that stood out for me.

by Fluffybunny | 27th Mar 22, 9:00pm 1648368053

-> move away from investigative journalism to tabloidisation.

Checked out your stuff news feed recently?

Married at first sight this.. Little baby Jacinda that...

by Brock Landers | 26th Mar 22, 2:48pm 1648259281

Be wary of convicted price fixing estate agents especially.

by Beanie | 26th Mar 22, 6:54pm 1648274093

The very definition of price fixing is that multiple companies are doing it. It wasn't just Property Brokers.

Real Estate Agents are supposed to work for the vendor, but they also pretend to work for the buyer. But they actually work for themselves. Use that fact to your advantage.

by DTRH | 26th Mar 22, 3:00pm 1648260036

22% not good you would get a big F in any exam. Just looks like housing market is tumbling and interest rates are still close to emergency levels. Anyone can see we are going back in time with this market maybe around 2016 so big drops deposit lost and negative equity for anyone who purchased in last 5 years. Investors and speculators will be wiped out this is why they are so upset but they must of made huge amounts on way up the smart ones left the market last November.

by 2022 | 26th Mar 22, 3:06pm 1648260383

Another way to gauge what TTP Tim Mordaunt is panicking about is to simply listen to his Property Brokers radio advertisements. This will be painful. You will notice the connection with the comment section.

by rastus1 | 26th Mar 22, 9:32pm 1648283570

The benefits of price falls are already happening.

One family member who has start up is reinvesting heavily in the business, now relaxed that he will enter housing when it suits him - growing a business without fomo and so on, housing just being something he will do when ready and no big deal.

This is how an economy grows......not the BS of flipping houses like we are used to.

by swapacrate | 27th Mar 22, 9:51am 1648327876

Thats what I like to hear, that's the way to grow NZ, and hopefully themselves.

by RickStrauss | 28th Mar 22, 2:27pm 1648430879

New Zealand would be so much better if we rewarded this entrepreneurial type of person rather than folk just sitting around on their ass-ets.

by Luke83 | 26th Mar 22, 5:02pm 1648267358

Please tell us your on the next flight out of here. You do know we all see through your rubbish comments and it's clear your either very inexperienced or just a negative person. Either way anyone who actually listens to you should seek a second opinion

by Brock Landers | 26th Mar 22, 8:08pm 1648278492

It always helps to know the difference between "your" and "you're" when you're trying to dismiss the wisdom of others.

Otherwise you end up looking like you're referencing your IQ in your username.

by HouseMouse | 26th Mar 22, 8:52pm 1648281162

And he's a repeat offender.

by Carlos67 | 27th Mar 22, 3:45am 1648305916

As it turns out the people that keep banging on about spelling here are the ones least satisfied with life. You have made several along the way Brock but I cannot be bothered pointing them out as its totally irrelevant to the opinions presented. If you want I can start picking on your posts here and you will be forced to put every word through the likes of Grammarly and cut and paste it across, which would be pretty tedious I should imagine.

by Brock Landers | 27th Mar 22, 8:08am 1648321694

Hi Carlos, correct spelling and grammar are extra important to shore up credibility when you are launching personal attacks on other commenters whose opinions may have rubbed you the wrong way.

Most of us do our best to avoid such behaviour as it's not very nice to pick on simple people unless they are really misbehaving.

While we are on the subject though, if you could put your posts through Grammarly before inflicting them on us it would be absolutely splendid.

by Flying high | 27th Mar 22, 9:57pm 1648371421

important to shore up credibility when you are launching personal attacks on other commenters whose opinions may have rubbed you the wrong way.

Try and do that then Brock

by Luke83 | 27th Mar 22, 7:45am 1648320340

House mouse, same clap for you repeat offender.... Really, Walk on boy.

by Luke83 | 27th Mar 22, 7:43am 1648320218

BL well done on pointing out that my grammar is not that great, slow clap for you. If that's all you have jog on boy.

by Brock Landers | 27th Mar 22, 8:00am 1648321248

Hi Luke,

Here is a tip to help you achieve the greatest success in life. Get your spelling and grammar in order. Nobody is going to take your intelligence or your competence seriously if you continue advertising that you haven't even been able to master the English language. We can work together on the rest of your issues later, but this one is foundational.

Cheerio.

by Luke83 | 27th Mar 22, 3:15pm 1648347339

BL, you are a keyboard warrior who needs to realise that the people you target in here couldn't care less if you never commented again. I do very well for myself and my family and don't go without. Thanks I'll have to turn down your offer as whilst I'm sure you can spell, your life clearly sucks.

by Brock Landers | 27th Mar 22, 3:32pm 1648348341

Hi Luke,

Nobody targeted you. You just got triggered about the thought of skilled professionals moving abroad. I would recommend reading the scroll back so you can figure out who launched into the personal attacks.

Or just look in the mirror if you're too illiterate to achieve even that.

by Waikatohome | 27th Mar 22, 5:53pm 1648356836

Whilst not wanting to be drawn into this futile debate, I would like to reassure any would be contributors that I personally value the content of their argument far more than the quality of their spelling and punctuation. There are many successful people who left school at 15 due to dyslexia and then went on to prove themselves through business. Not being proficient with the written word is no indication of overall intelligence or good judgement.

by DDDDebt | 26th Mar 22, 4:22pm 1648264974

"The housing market is not "nose-diving", "tanking" or "collapsing" - it is too resilient for any such outcome"

Said everyone soiling themselves with a vested interest. Every RE agent, broker, banker, developer, residential builder, property market ticket clipper.

The property industry has given up on the narrative that prices don't go down, so is now trying to engineer the narrative of a 10% correction followed by a flat market - a soft landing, as this is their ideal scenario.

But do you REALLY think that's going to happen? You wouldn't if you stopped thinking like the boomer mega-millionaire mega-landlord that you are.

Think about the market from the average FHBs perspective... someone under 40.

They simply can't afford to pay the ridiculous prices any more... because mortgage costs are going to at minimum double, or triple, and possibly quadruple if rates go to 8% like they were when we last tried to control inflation just over a decade ago - if you took out 1.99% rate specials.

No one knows what's coming, but all bets are on that it's going to get very ugly for those who put all their eggs in the property basket.

by Retired-Poppy | 26th Mar 22, 6:20pm 1648272018

"engineer the narrative of a 10% correction"

Spruikers cannot see past their front gates. Little do they realise that as interest rates normalise, Central Banks will be the ones to blame for heal dragging in response to this inflation surge. Under the weight of increasing interest rates, house prices will likely fall 10% each year for say the next three years. This is unlikely to play out over the remainder of 2022. When adjusted for inflation, in the end, it could equate to a fall of 50%! In the 70s it was 40%...😭 Still some Evangelical Muppets will argue it as a soft landing (for those who bought 15 years ago that is) 😳

by Flying high | 27th Mar 22, 10:01pm 1648371704

heal dragging

Dont you mean heel dragging, there is no such thing as what you wrote

"Imagine" someone referring to 'high heals' lol

by Waikatohome | 26th Mar 22, 9:22pm 1648282939

This market is no more, it has ceased to be, it has shuffled off its mortal coil and gone to meet its maker….. this is an Ex market. You are misleading yourself. Any non biased objective analysis of the current situation would lead to the conclusion that now is not the time to be buying a house.

by Tee | 26th Mar 22, 6:52am 1648230745

The property market can't tank. Not with COVID, inflation, war and security. Most of all, there are people who are not hedged for a reversal.

by Averageman | 26th Mar 22, 7:35am 1648233307

Let's see. A lot of debt is rolling over from record lows this year, and rates could be as high as 7-8% by the end of the year. Inflation will continue to hammer people's ability to save a deposit.

All adds up to most buyers being unable to touch last year's prices even if they want to.

by Solid_Granite | 26th Mar 22, 8:20am 1648236038

The interest payments are the killer. A graph that Stuff posts shows that deposit weeks has actually come down for the first time in years, while fortnightly payments has shot right up. A new record.

For people who suggest it's a balancing act between falling prices and rising interest rates, it's really not. Both together send a clear message: Stay away from housing for as long as you can. It's the opposite scenario to rising prices and falling interest rates, where the winning strategy is buying earlier. Which sort of explains the FOMO. It also explains the reverse FOMO (or FOOP) that will occur.

by Adam B NZ | 26th Mar 22, 7:58am 1648234689

The property market can't tank? You're kidding right?

by 2022 | 26th Mar 22, 8:36am 1648236985

He is joking. It already is Tanking. We are galloping towards a -30% Crash in home prices this year. RE Agents and Media already reporting 15-19% price reductions. 7% interest rates will be here this year.

by doxiedog | 26th Mar 22, 10:04am 1648242294

Dunedin is in standoff mode, I heard yesterday of someone buying 50k under the asking price and the house wasn’t a dump.

by 2022 | 26th Mar 22, 10:13am 1648242802

I would not be buying anything at all. People who wait will be rewarded. You can literally save thousands of dollars per week by doing absolutely nothing. Here is a good overview of what is going on.

https://www.youtube.com/watch?v=UqoSFYEGdhw&t=1s

by Zachary Smith | 26th Mar 22, 10:18am 1648243089

Will Martin North finally be right? It's been a long time coming.

by tronic | 26th Mar 22, 10:46am 1648244803

Bloody love Martin

by Mountie | 26th Mar 22, 11:16am 1648246561

Some facts out of Welly from Lowe and Co. Prices soft, the most listings since 2015... https://youtu.be/XwQgHZJqkIc

by Luke83 | 26th Mar 22, 12:07pm 1648249657

Heard this before, if your buying to reno and sell its dangerous times, if your buying to get in the market on a 30/40 year journey, I promise you, 30k or even a hundy is nothing.

by tomjones_04 | 26th Mar 22, 12:41pm 1648251666

Luke83.. that’s a good comment, and a fair one. I think the real savvy investor who can buy and sell in a recession will do ok, but the leveraged and naive should be nervous. It’s looking uncertain, I agree with most commentators on here, it’s unpredictable and could surprise us by it’s resilience or by it’s drops. I agree with most, apart from TTP because he’s opinions are trash. I quite like CWBW though, smart guy and knows how to play the villain, what happened to him?

by Luke83 | 26th Mar 22, 5:10pm 1648267803

Not sure Tom, he has been replaced by a few doom merchants that are clearly very young or just not experienced in RE long term. It's called property cycle that some don't get, they fail to notice our dependants on housing, other countries such as Japan have other industries that drive their house prices and a lot more complex issues. Nz is very young and very simple. Will be an average 2022 but I still say positive territory by December?? Maybe I'm wrong. I take my guidance from those that are very experienced.

by lucenera | 26th Mar 22, 5:58pm 1648270716

by HouseMouse | 26th Mar 22, 6:16pm 1648271814

Luke, are you guided by Obi Wan Kenobi or Master Yoda?

by Brock Landers | 27th Mar 22, 8:12am 1648321962

It sounds like he may be one of CWBW's "boys". Plenty of fuzzy logic.

by DDDDebt | 26th Mar 22, 9:13pm 1648282404

I get cycles... I've been through em.

2007/8 was the end of the last cycle... caused by the GFC and interest rates fell drastically to support the economy which meant about a 10% fall from peak in values.

Commentators like to say the market survived the GFC without crashing, but they never say the real reason it survived - it was massively supported by lowering the cost of debt.

https://www.rbnz.govt.nz/statistics/key-graphs/key-graph-mortgage-rates

But it still caused carnage many haven't seen.

http://www.stuff.co.nz/business/3041761/Up-to-the-eyeballs-in-mortgagee…

I think that some of the spruikers have forgotten how property cycles end... but it should be a lesson for the very young and over leveraged.

But you're right Luke, NZ is very simple and when the reserve bank warns you that prices aren't sustainable, you'd be a fool to ignore their warning since they are the ones that effectively control the cost of debt and as such house prices

https://www.rbnz.govt.nz/news/2021/08/house-prices-above-sustainable-le…

Who know's what they're going to do, and while falling home values are very subjective, debt is very easy to measure

by HouseMouse | 26th Mar 22, 9:16pm 1648282563

Won't be able to cut the OCR 2-3% this time to save the housing market!

by Luke83 | 27th Mar 22, 7:49am 1648320575

Well put DDD, I agree.

by swapacrate | 27th Mar 22, 11:47am 1648334871

Thats quite funny. Not sure its suppose to be, but very funny. You sound like TheMan, you could be TheMan2. Quite funny you mention property cycle, but the other DGM who thought property could only go up in NZ because we are special didnt think we were in a cycle.

Property is one type of investment as well many other types of investment out there. Much better returns.

by rjn1 | 26th Mar 22, 12:52pm 1648252350

100k might be nothing to you. To me, it's a shiny new boat.

by house hunter | 26th Mar 22, 3:40pm 1648262411

Stabicraft?

by Luke83 | 26th Mar 22, 5:04pm 1648267462

Yea true that, nice stabi

by Solid_Granite | 26th Mar 22, 12:57pm 1648252664

The whole market is geared towards reno and sell though. That's why it's teetering on a cliff edge. First home buyers have long been priced out of desirable homes they'd want to spend 30 years in.

by Nzdan | 26th Mar 22, 3:41pm 1648262511

All the perfect starter homes that need a little work are gobbled up by reno and sell flippers. Meanwhile prospective FHB are told they should lower their expectations and look for properties that need a little work........

by Fluffybunny | 26th Mar 22, 1:06pm 1648253184

Lol. 100k is a lot if you are going to double, triple your interest costs over the next 3 years and your income stays stagnant.

Its the cost of a new EV. A new boat. 5 or 6 World wide holidays.

And we are not talking 100k. In Auckland the amounts are potentially much greater. We've already passed that 100k avg price mark and the fun hasn't even started yet.

by lucenera | 26th Mar 22, 2:55pm 1648259718

the fun hasn't even started yet. <= well said

by Smudge02 | 26th Mar 22, 8:01am 1648234914

Most of all, there are people who are not hedged for a reversal.

Is this sacrassim? Whether or not people are "hedged for a reversal" has absolutely nothing to do with it?

Not sure what you mean by "tank" but the market is going south regardless of your reasoning.

by Averageman | 26th Mar 22, 9:14am 1648239296

An example would be those who used the emergency rates to clear their debt, and find and build profit making businesses, vs endless stacking of debt while believing the seminars endless growth stories. Solid assets, no debt and strong income streams vs massive debt not supported by income.

Tanking will make the FONGO crowd FOOP their pants. It's going to get worse before it gets better.

by Dgm | 26th Mar 22, 8:14am 1648235646

Teeing off people, are you?

by Zachary Smith | 26th Mar 22, 7:33am 1648233201

I'm seeing a lot more for sale signs around my place. Seems like a bad time to put a property on the market but who really knows? Buyers will still face strong opposition from the sellers. Even in these times buyers should follow the usual strategy of not falling in love with a property and be prepared to walk away. Recognising a bargain is difficult though and can often only be appreciated in retrospect.

by 2022 | 26th Mar 22, 8:39am 1648237170

There is no such thing as a " Bargain " in a falling market.

by Pa1nter | 26th Mar 22, 8:48am 1648237693

Sure there is, decent properties are decent regardless of the current market state.

by 2022 | 26th Mar 22, 9:08am 1648238904

What has that got to do with a "Bargain" ?

by Zachary Smith | 26th Mar 22, 9:41am 1648240916

Yeah, buyers should keep that in mind when negotiating. If the real estate agent says, "This is a bargain!" it would be a good comeback.

It would only turn out to be a bargain if the market later began to rise. But then, I guess, that would apply to all properties. My "bargain" currently would still be just a gamble. In a falling market it would have to be considerably below the market value to be considered a good gamble.

by RealAgent | 26th Mar 22, 7:57am 1648234673

Why do agencies push Auction? (now, let alone ever) ill tell you the inside secret. -201 properties, each owner paid about $3000 marketing - that's $600,000 we get for free to market our agency brand to the marketplace. Oh what, they didn't sell? Oh well.

by Fluffybunny | 26th Mar 22, 8:00am 1648234803

Marketing fees alone are not going to sustain the over grown number of RE agents out there.

Going to be a long winter for some of you.

by Pa1nter | 26th Mar 22, 8:46am 1648237613

Auctions are pushed because they create a forced sale like environment. It's either a frenzy you as the buyer have to prevail over, or the "market" telling you that's all the property is worth so you'd better sell now.

In a tepid or cooling market there's a lot less call to action.

by Zen20 | 26th Mar 22, 9:06am 1648238760

They have the potential to generate maximum reward for minimal effort, that's why

by Mountie | 26th Mar 22, 8:53am 1648237980

All Agencies will ask for a marketing 'contrubution', irrespective of the sales method you choose. Last time we sold a property we negotiated a flat fee for the commission, which included advertising. Did they like it, not really. Did they want the listing, yep.

by Luke83 | 26th Mar 22, 7:56am 1648234574

Ray white 70 out of 198, barfoot and thompson are clearly not doing so well, haven't checked harcourts.

by Fluffybunny | 26th Mar 22, 7:56am 1648234592

If your a buyer, why bother going to an auction. Just tell them to contact you once it passes in.

by Mountie | 26th Mar 22, 8:46am 1648237613

Because you can be the winner on the day, under the hammer with a vendor who wants his/her property sold. Way more transparent than the smoke and mirrors multi offer situation and the ridiculous tender process (looking at you Wellington).

by 2 Tooth Bora | 26th Mar 22, 11:13am 1648246389

Transparent LOL.... who's bidding on the Phone and Computer?

One should never associate that word or honesty with the property industry.

by Fluffybunny | 26th Mar 22, 12:57pm 1648252649

If they want to sell we can negotiate at any point. Don't force me to buy under your conditions when there is now choice.

Auctions are there to negate rational thought, and restrict due dillagence.

Its also easy work for the agent.

Why go to auctions when there are more and more properties flooding the market.

A failure to sell at auction is an emotional hit to vendor expectations. Its a switch from me chasing you to you chasing me.

by Nzdan | 26th Mar 22, 3:46pm 1648262815

Exactly. Let the auctions pass in and give vendors a bit of a reality check. It'll soften them up a little bit, take a leaf out of Roy Nong Fong's playbook and take advantage of the seven d's.

by Nzdan | 26th Mar 22, 8:17pm 1648279027

Mankiw's words: "There is no shame in figuring out what the market will bear."

You see a man drowning, you are about to toss him a life preserver. "How much would you pay me to toss you this life preserver?" you shout. "Blub" he replies. "I'm afraid 'blub' just won't do" you call back, beginning to walk away. Through mouthfuls of seawater, he manages to spit out the words: "I'll pay whatever you want, just toss the damn life preserver!".

The man drowning was any prospective FHB or renter, the tables are flipping and this now applies to vendors and potentially landlords.

by Pa1nter | 26th Mar 22, 7:57am 1648234638

There's almost as many houses for sale in my neck of the woods as there was in 2019, quick panic!

by Dgm | 26th Mar 22, 8:03am 1648234995

More pressure on prices.. the trend is clearly pointing downwards..

by 2022 | 26th Mar 22, 9:05am 1648238754

If you want your property sold quickly ( or even at all ) here is a tip. Never use an agent. Come to terms with the fact RE Agents and Media have revealed to the public prices have dropped by 15-19% already and more pain is to come. Set your price accordingly. Then take OFF a further amount that the RE Agent would have absorbed. Simply advertise it yourself on trade me selling the fact the savings of no RE Agent is being passed onto the vendor. At the end of the day if the price is right it will sell itself.

You dont need Tim Mordaunt there blowing the saxophone, or his own trumpet.

https://www.stuff.co.nz/life-style/homed/real-estate/128055412/just-how…

by Averageman | 26th Mar 22, 9:27am 1648240077

Beware sales people offering free trinkets. It is simply a distraction. Mind you theres one born every day so game on...

by doxiedog | 26th Mar 22, 10:02am 1648242152

So true, I’ve bought privately twice and sold privately 3 times.

It’s really not difficult!

Don’t skimp on costs though, professional photos and a excellent write up on Trademe with all the documentation ready to go ( LIM, electrical report etc) and suggesting a lower deposit has helped get purchasers over the line.

by swapacrate | 28th Mar 22, 9:35am 1648413339

We sold privately, we were going through an agent initially in UK. The agent was mucking us around and not conveying our thoughts to buyer. We wanted a completion date for the Bank, the buyer after 6 months who kept saying the deal was imminent did not give us a completion date. The agent was manipulating us and so was the buyer, it was quite a tough time.

We talked to our neighbour he had a friend, the friend offered cash, we took house from agent and took the cash and only used our lawyers. Done and dusted.

If I buy, I will make offers privately, I know what I want, in the area I want, so when we get money together we will make offers, no agents. Its not the costs for me, its the agents I dislike the way they go about their business, they are so two faced. They have no empathy and are only in it for themselves. We have children, one agent wanted us to wait while they sold our rental, so it gave buyers an option, to buy with tenants. No consideration that's a huge risk for us, just making their sale easier. What a joke. I have never had a good experience with an agent, or real estate agency.

by Brock Landers | 26th Mar 22, 1:09pm 1648253363

CWBW and his "indian boys" will be sweating bullets as their leveraged flipping strategy doesn't survive contact with economic reality.

Be quick!

by Fluffybunny | 26th Mar 22, 12:13pm 1648250033

Quote CWBW directly please : "my indian boys"

by Brock Landers | 26th Mar 22, 1:09pm 1648253342

Updated.

by Nifty1 | 26th Mar 22, 3:14pm 1648260860

It's certaintly interesting seeing articles like this come out...

Slumping prices: Banks pledge not to strip borrowers of 'special' mortgage rates, if their equity falls below 20 per cent

https://i.stuff.co.nz/business/money/128141126/slumping-prices-banks-pl…

The tone from main stream media has changed quickly...

by house hunter | 26th Mar 22, 3:46pm 1648262793

Here's a question: in the current market approximately what percentage of CV do you think would be a fair price for a small (1bdrm or studio) apartment in central Auckland? Assume it's in a reputable building with no issues.

by lucenera | 26th Mar 22, 4:45pm 1648266346

about 4 times the salary of a single non too senior professional, so about 70k * 4 = 280k. That is a "fair" price, but still expensive.

by HouseMouse | 26th Mar 22, 6:18pm 1648271908

Personally, I wouldn't touch any with a barge pole.

*Maybe* worth a look at 50% discount.

by house hunter | 27th Mar 22, 1:36pm 1648341373

Thanks for the replies HouseMouse and lucenera.

For the record I offered about 10% below CV and got turned down. Probably lucky for me. It should be noted that central Auckland apartment values haven't gone up anywhere near as much as house values over the last few years, so it seems reasonable to assume they won't fall as much. We'll see - the next couple of months will be interesting.

by HouseMouse | 26th Mar 22, 8:57pm 1648281469

New Build townhouse rental listings in Auckland on TradeMe pretty steady over the past week.

by Averageman | 27th Mar 22, 1:19pm 1648340362

Dive dive dive, see the speculators start to moan. It's the sence of entitlement to vapor loss that's really funny. Speculand still fails to realise how exposed it is.

Popcorn.

by Doggog | 27th Mar 22, 9:41am 1648327309

Seeking re-election is pretty hard if you start causing financial hardship. It is more likely that the talk of large interest rates rises will, like other predications be just talk. Don't forget most governments are up to their eyeballs in debt and it won't only be mortgage holders forking out more. No, you can be certain this inflation has been planned to reduce the government debt load, so it won't go away. In 5-7 years time a million dollars will be like 100K.

by Independent_Observer | 27th Mar 22, 10:19am 1648329566

That level of inflation would be extraordinarily bad for asset prices in real terms. If you discount future cash flows based upon the level of inflation that you are implying in the above, the denominator of the asset price = cash flow / discount rate equation becomes very large.

by Doggog | 27th Mar 22, 10:35am 1648330550

People are talking about the Great Reset. What they don't understand is the reset is all about government debt and future liabilities. A housing market crash with a few bank failures is not going to make the government debt go away. High inflation is the answer to their massive debt. Collapsing house prices and deflation makes the debt load even worse. What you are likely to see is a controlled level of inflation that slowly but surely erodes the debt load. If there is a major crash / depression then that will surely have been engineered for a reason. Some suggest a new digital currency is on the way.

by Waikatohome | 27th Mar 22, 5:46pm 1648356404

On one hand governments are criticised for their incompetence but in the same breath are accused of some global conspiracy. This government can’t deliver on any of their promises, what makes you think that they could engineer a global depression. Don’t look for conspiracy when cock-up is far more likely.

by Market Interest | 27th Mar 22, 11:22am 1648333327

Maybe Doggog, but with two-thirds of government debt in foreign currency, keeping interest rates low to inflate away the local bond liabilities could be a net loss. Hiking interest rates hard and fast (and above step with the rest of the world) to strengthen the currency might be an attractive proposition. This would also drastically reduce inflation for imported goods which is where much of the immediate pain resides...sounds like a vote winner to me.

https://milfordasset.com/insights/investment-data-shines-spotlight-on-n…

Overseas borrowings represent nearly two-thirds of total gross Crown debt with the remainder sourced from domestic investors.