Little change to Barfoot & Thompson's auction numbers in the week before Easter

Property / news

Around a quarter of properties selling under the hammer at Barfoot & Thompson's auctions

16th Apr 22, 6:00am by Greg Ninness

Auction activity remained inline with recent levels in Barfoot & Thompson's auction rooms in the week before Easter.

Auckland's biggest real estate agency marketed 181 residential properties for auction over the week from 9-14 April, compared to 200 the previous week.

That suggested activity was remarkably stable given it was short week.

Of the 181 properties offered, sales were achieved on 43, giving an overall sales rate of 24%, almost unchanged from 25% the previous week.

Around Auckland it was the North Shore properties that had the highest sales rate at 39%, while Waitakere properties had the lowest, with just one of the 16 Waitakere properties auctioned last week selling under the hammer.

See the table below for the 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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111 Comments

by Carinaz | 16th Apr 22, 7:27am 1650050840

Headline : Housing Market Stable and Consistent .

After heavy decline from 84% properties selling under the hammer, is now consistent between 21% - 25%.

Has the downfall bottomed out and only way is up from here.

by LFCYNWA | 16th Apr 22, 7:50am 1650052241

We'll see a big fall in the next release of figures followed by a 'recovery'. If interest rates settle at 7% we will then see 18 months of horror, circa 30% declines. Classic bubble blow off top followed by falls.

by Carinaz | 16th Apr 22, 7:55am 1650052502

Amen !

by malamah | 16th Apr 22, 8:01am 1650052900

25% of houses sold means 75% of houses passing in, going to negotiation and maybe even BEO, this is where sellers won’t get what they ask for. I’m not sure how many properties carry over week to week but these stats suggest a backlog of available housing. Each week there’s 4 weeks supply of housing going to auction is another way of looking at it.

What would skew this stat is how many houses are going on to sell in negotiation or BEO, but that’s a tough world right now. And also how many properties get carried over to the next week. It’s too early in the morning to go figure that out but you get the gist.

A stable lack of sales shows some support, but it’s a low support at a lower price (according to HPI)

by andrew6 | 16th Apr 22, 8:26am 1650054386

Is it the beginning of the end of current housing bull run, which ran for over 20 years - bigger picture as deefinitely is the end of housing ponzi triggered by Mr Orr and Jacinda under guise of pandemic.

Next ponzi can only be build, once this is shattered to the ground and people forget the pain just like the trauma of stock market crash in late 1980s.

Will 2022 / 2023 will be for housing speculation what 1987 /1988 was for stock market in NZ.

by IT GUY | 16th Apr 22, 7:28am 1650050915

Good morning property doomers ! how much has your property lost overnight ?

by tomjones_04 | 16th Apr 22, 7:39am 1650051567

I’ll answer that question for you in 6 months. Anyone who thinks the property market isn’t on life support is extremely deluded. Big crash

by HW2 | 18th Apr 22, 6:48am 1650221328

As a non owner will you be better off in 1 year than what you are right now... nope. Rents higher, and less chance of getting a mortgage

by swapacrate | 19th Apr 22, 1:51pm 1650333074

Actually I will be a lot better off.

Average house price $1.2 mill, deposit approx $200K

Invest in my business $50K.

My products are expected to sell 400/ month at $20 profit per unit. By next year I will have 6 products selling. 400 sales a month is relatively easy to achieve whilst some people sell thousands.

6 x 400 x 20 = $48,000 per month.

We aim to sell 25 products in 4 years and then ramp up to 50 or more in 6 years once we truly know what we are doing and bring on help.

Easy sums.

25 x 400 x 20 = $200,000 per month. This is profit paid into our account.

Now we may not hit this exactly, we could do better or worse, but you should get the gyst that this is slightly better then anything I would achieve with property. We will build a business that can be passed to our kids and that can be grown and differentiated. Not to mention you can do this from anywhere in the world as its an international company that is done online. Property would never give me the lifestyle I can achieve with my business. This is just a normal business selling normal products.

by ex agent | 16th Apr 22, 7:48am 1650052110

I am sure some of those FHBers who bought in the last nine months or so are starting to worry. Their deposit is disappearing and the cost to service their large loan is going to increase when their fixed period runs out. Fancy being in their shoes?

by malamah | 16th Apr 22, 8:05am 1650053140

I know of a few, paying a minimum $1000 to service their loans once interest kicks in. On homes at the bottom of the ladder so no downsizing options either. I hope for their sake they’re able to have savings and have a stable cashflow over the next 3-5 years…

by andrew6 | 16th Apr 22, 8:33am 1650054811

I know someone, who was running a franchisee business, making decent money but hard work and is now planing to sell it to repay some debt out of million dollar borrowed to reduce mortage to minimum and opt for job.

This option is not only to repay major part of mortage but also not worth the time and effort, NOW to do business and possible as he is getting good job offer in similar industry.

by Fitzgerald | 16th Apr 22, 8:39am 1650055177

There are always options. They could sell and rent.

by Yvil | 16th Apr 22, 12:50pm 1650070253

IT Guy, yes the market overall is down but it doesn't mean everyone's house value is down. I bought a property in August 2022, Corelogic (Valocity) currently valued it $870k more than what I paid for it 8 months ago, but I know it's worth more than this, because I have made significant improvements to it, which are not reflected in Corelogic's valuation.

by Nifty1 | 16th Apr 22, 12:50pm 1650070253

Ouch so you sold out early and bought back in at the peak... As they say, it's dangerous trying to time the market. What kind of improvements have you made?

by Yvil | 16th Apr 22, 4:24pm 1650083068

Why "ouch"? I didn't sell the average house for the average price, nor did I buy the average house for the average price.

by Nifty1 | 16th Apr 22, 12:56pm 1650070609

Ouch because the majority of interest.co commentators are expecting 30%-40% house price falls...

by Yvil | 16th Apr 22, 1:13pm 1650071591

As for "what improvements?", I cut trees

by ex agent | 16th Apr 22, 2:10pm 1650075015

If you bought in August 2022 you are staring down the barrel at a big fall in value. That was terrible timing. I thought you were smarter than that. When things are stupid you keep well away.

by Yvil | 16th Apr 22, 5:21pm 1650086493

Sorry but this is a really dumb comment. Here's a person telling you that they've made over $1 Mill in 8 months on a specific property, and you come back saying "you're losing because the market is going down".

You too, clearly don't make the difference between the direction of the market overall, and the fact that individual properties can be bought or sold below or above average value and the value of a property can be increased if one is astute.

by ex agent | 16th Apr 22, 5:01pm 1650085279

You can’t have made that much money in that time. The market was hot when you bought it and started to come off not long afterwards. The heat has continued to come out of the market throughout 2022 and will continue to do so for some time. Your credibility is certainly going out the window.

by Yvil | 16th Apr 22, 5:25pm 1650086728

I can only repeat my post above as you must have clearly missed it

You too, clearly don't make the difference between the direction of the market overall, and the fact that individual properties can be bought or sold below or above average value and the value of a property can be increased if one is astute.

And yes, to be clear, I have made this much money in this time. I would have made it in a much shorter timeframe if it wasn't for the lockdowns

by ex agent | 16th Apr 22, 5:44pm 1650087890

Too vague as always. We could all talk in generalities like you. Give us some real information such as an address. If you are not willing to do that stop doing what you are doing.

by Yvil | 16th Apr 22, 6:26pm 1650090360

"stop doing what you are doing" Who do you think you are to tell others what they can and cannot write on this site?

Also, I'm very open and candid but I'm not silly enough to give you my address.

by HouseMouse | 16th Apr 22, 9:33pm 1650101628

I'd just be a bit careful with valuations, especially if they are generic online ones without inspections etc. I got a valuation from Valocity 5 or 6 weeks ago, I reckon it's 10-15% too high, especially as the market is definitely dropping away.

by DTRH | 16th Apr 22, 2:21pm 1650075672

Coredlogic will be working from old data if you sell soon might just lose 10% to 15%

by Yvil | 16th Apr 22, 3:18pm 1650079129

Which part of "the value of the property has increased by over $1 Mill since purchasing it in August 2022" do you not understand DTHR?

by Nifty1 | 16th Apr 22, 3:32pm 1650079953

Are you talking about paper gains Yvil? Where are you cashing in this $1million - homes.co.nz or oneroof.co.nz? How'd you appreciate the value by $1m cutting down trees...

by Yvil | 16th Apr 22, 4:18pm 1650082738

Ever heard of "Million dollar views" ?

by printer8 | 16th Apr 22, 4:33pm 1650083596

The problem with this discussion - as for many comments about the coming fall in values - is that those pushing what is gloom is that they are talking a short to medium term fluctuation (paper loss) where as owning a home is longer term. Most of those commenting do not seem to be able to comprehend this.

It seems I really do need to recount a personal experience yet again. I purchased one of my rentals in 2006 and during the GFC the RV fell nearly 20% below my purchase price. When I did sell it in 2016 I made a significant capital gain.

For most, the implications of short to medium term falls in value have little importance. For homeowners it is still the same home, for investors it is the same rent. Remember all the talk when prices were rising that it was commonly stated with glee that it was only “paper gains” until one sold . . . nothing has changed except some now choose to ignore this due to their bias.

I will also say this again; for those - especially FHB - who have recently purchased a home (or investment property) the more significant issue is rising interest rates. I have also said it for some years; they - especially FHB - need to be prudent and pay down the mortgage as much as possible and that is taking on increasingly more importance and urgency. Being prudent means putting off discretionary spending such a new deck or kitchen, or keeping that car for a year or two more.

by DTRH | 16th Apr 22, 4:52pm 1650084776

P8 you should of waited to sell august 2022 Yvil would have bought at top dollar from you.

by printer8 | 16th Apr 22, 5:00pm 1650085210

DTRH

The one I kick myself repeatedly about is my first home . . . $80k then and today the new Auckland RV is $1.2m. Should have kept it but back then people didn’t believe that property always goes up in value. 😪

by Yvil | 16th Apr 22, 5:03pm 1650085431

"should of waited" but "would have bought". Make up your mind DTHR

by HouseMouse | 16th Apr 22, 5:04pm 1650085495

Yvil you have criticised me for making below the belt comments, yet you do it regularly and have done it once again, here.

maybe we can both commit to playing the argument rather than the man?

by Yvil | 16th Apr 22, 5:20pm 1650086409

I have also commended you below for your new commitment. Could you please point to my "below the belt" comment? I cannot find a comment here, where I called another poster any name or attacked him/her personally. Thanks

by HouseMouse | 16th Apr 22, 5:24pm 1650086662

You have done it numerous times like me. Maybe we are actually quite similar? Both of us can do better. I am committing to it.

by Yvil | 16th Apr 22, 5:27pm 1650086879

Sure HM, I'm happy to give you my commitment not to attack people personally (or call them names which I don't think Ido)

by HouseMouse | 16th Apr 22, 5:32pm 1650087139

Good, I am glad to see you have acknowledged the errors of your ways just as I have done.

Time to move on.

by Zachary Smith | 16th Apr 22, 8:02pm 1650096166

I'm trying to get my head around how Yvil bought in August 2022.

Just for that Yvil loses here. Also you can't insist you have made anything until you sell.

by Yvil | 16th Apr 22, 8:24pm 1650097490

Happy to be a "loser" in your eyes, when I'm making a vary large gain.

by Zachary Smith | 16th Apr 22, 9:18pm 1650100717

I can't really put it into words except for a vague feeling of disappointment.

by DTRH | 16th Apr 22, 4:43pm 1650084208

So chopping down some trees has given you million views, dream on Yvil no way would house go up over million when market is on downward path in 8 months

by HouseMouse | 16th Apr 22, 5:03pm 1650085401

Yes I agree, it’s a ridiculous claim.

And that’s not to bag Yvil for the sake of bagging him (I have made an Easter commitment to steering away from ad hominem). It’s just an objective comment.

unless he had two big scheduled heritage pohutukawa trees removed, that were otherwise blocking views, if Yvil was able to achieve that then yes the value could have increased significantly.

by Yvil | 16th Apr 22, 5:10pm 1650085845

HM, great commitment you made! Well done!

by HouseMouse | 16th Apr 22, 5:24pm 1650086699

Great, I hope you might also be able to commit to this as well.

by Yvil | 16th Apr 22, 4:59pm 1650085174

DTHR,

What's the address of the property discussed?

How much was it bought for?

What is the view of?

What did it take to cut he trees to obtain that view?

Can you answer an of these questions? I can, all of them, precisely.

Lastly I did not claim getting that the view alone increase the property by $1 Mill, I bought really well (which surprises me given at the time the market wassail really strong)

by CrispyKahawai | 16th Apr 22, 5:05pm 1650085548

To be fair, until you sell it you can't really make any claim of its value.

by Yvil | 16th Apr 22, 5:16pm 1650086176

Right, so Elon Musk is worth nothing because he hasn't sold Tesla, bill Gates is worth nothing because he hasn't sold Microsoft and Warren Buffet is worth nothing because he hasn't sold his portfolio of shares. According to your logic, they will only be rich when they sell and put heir cash under their very big pillow?

by CrispyKahawai | 16th Apr 22, 7:29pm 1650094141

I didn't say that your house is worth nothing, I said you don't know its value. And those people you mentioned also have a lot of money, beyond the value of their stock holdings (the values of which are known because people are regularly buying and selling the stocks). Your response is unusual.

by Yvil | 16th Apr 22, 8:16pm 1650096974

True, you didn't say it's worth nothing but the value can be assessed fairly accurately. Actually the whole banking and mortgage industry relies on it, a whole profession is dedicated to valuing properties (valuers). If a value could not be attributed to a house fairly accurately, banks would not lend any money for said house and hardly anyone could buy a house. A house could also not be used as collateral for a business loan and a lot of businesses would not exist as a result.

by CrispyKahawai | 16th Apr 22, 9:01pm 1650099682

True, whilst I agree with you, I guess my point is that in a falling market it become pretty difficult to tell. We bought our place in August too, and although the changes we've made to it have made it a considerably more desirable house, I do wonder if we'd even break even if we were to sell right now. Sentiment goes a long way.

by printer8 | 16th Apr 22, 11:07pm 1650107232

Crispy

Until it sells you can’t make a claim to its value?????

It is common practice to put a “value” on a property - this includes a valuation for rating purposes (RV), for insurance purposes or a bank for leading purposes . . . and of course both a vendor and potential purchaser will have their own values.

The “value” or “valuation” of a property can be made by looking at land and floor area or by comparison to similar recent properties that have sold. A registered valuer specialises in determining a value on a property and there a range of algorithm apps.

One should recognise that those involved in property consider “sale price” and “value” to be two different things. For instance, it is recognised by investors to look to purchase a property below its market value - this can include properties where there is a degree of distress on the part of the vendor such as a mortgagee sale, a matrimonial split, or an estate sale. Arguably the sale price is below its market value . . . and this is not just about investors but many homeowners including FHB.

The sale price doesn’t set a property’s value. Does a house’s value change in a week if it is bought by a flipper to I sell a week later at a profit? There has been numerous court cases for a variety of reasons where a sale has been considered not the value of a property (think REA scams).

Have you ever bought something and not got value? Sale price and value are two different things.

In Yvil’s case, the key question is how has his value been calculated . . . how did the purchase price compared to a registered valuation at the time of purchase, what is the value of the improvements he has made including removing the trees (which can add value), how have sale prices for properties in the same locality trended as not all regions and locations have seen the same recent price movements. . . .

However, yeah, the value one places on a property may not be particularly valid. Trump appears pretty good at this depending on whether it’s about tax or use as a security or boasting of his wealth.

cheers

by Yvil | 16th Apr 22, 5:09pm 1650085792

DTHR, the first step to a better life is to rid oneself of all feelings of bitterness, envy and anger. Only then will one be able to open his/her mind to the amazing things that are possible to those with a good, constructive outlook on life.

Life is really amazing, but it can only be so to those who believe that it can be amazing!

by DTRH | 16th Apr 22, 6:11pm 1650089519

Yvil hows the view from the asylum . I think we have all worked out that you really don’t have a clue and make up story’s

by Yvil | 16th Apr 22, 6:44pm 1650091469

It's a shame that you're not willing to open up your mind. I understand, I used to be the same, my parents were good people and well meaning, but they were very restricted in their mind, they had a mentality of "it can't be done" which I inherited. What changed me, is the open mindedness of my wife, although it took me years to accept that all sorts of things I though were impossible, could actually be done

by ex agent | 17th Apr 22, 12:03pm 1650153797

That’s very funny coming from someone who calls him or herself Yvil. Why don’t you call yourself Goodness?

by HouseMouse | 16th Apr 22, 8:13pm 1650096830

Yvil, I am interested in ‘outside the square’ approaches to investment and all things in life.

keen to know if you got resource consent to remove heritage trees to open up your views, if so that is a canny move, and if so well done as those processes with council are tricky.

I fail to see how cutting down a few non-protected trees would add much value, so I assume you took the risk of getting resource consent to remove scheduled trees that were blocking views.

Genuinely keen to know, thanks.

by Yvil | 16th Apr 22, 8:23pm 1650097409

HM, you're very much on the right track, well done. They are Pohutekawas in front of my property on Council land, therefore not an easy thing to do, to prune them, otherwise the previous owner would have done it (I know he tried to). That's why it took so long.

by HouseMouse | 16th Apr 22, 8:27pm 1650097665

Good work!

by rastus1 | 16th Apr 22, 8:39pm 1650098347

Good work? Sort of sounds like he got a public asset destroyed for private benefit. Sounds selfish to me. But perhaps they were rotten or something, in which case good luck to him.

by HouseMouse | 16th Apr 22, 8:46pm 1650098806

That's a bit harsh. If he was able to get some Pohutukawa trimmed back a little to give himself a bit more of a view, then good on him.

by rastus1 | 17th Apr 22, 10:03pm 1650189808

Some trim! Apparently it was worth a mill!

by HouseMouse | 16th Apr 22, 8:51pm 1650099099

You've said you are in St Marys Bay, Yvil, I'm guessing you are somewhere near the motorway if it's an area with sea views. I lived in that area once at a friend's place when I was at uni, can be a little noisy at times with the motorway, but great views!

Are you interested to see what the council has in mind for changes to the Unitary Plan? Could be more upward value potential there for you if they look to get rid of the Special Character overlay where you are.

by Timmo | 17th Apr 22, 7:59pm 1650182379

I think I know which area it is (am local to that area) but I'll keep that to myself for Yvils privacy. Removal of those trees would increase outlook (and specifically reduce the amount of shade). Also, $1m as a percentage of a more expensive property isn't as much of course.

by Nifty1 | 17th Apr 22, 9:41am 1650145312

The story sounds BS to me and even if it is true it's for sure not a 1million dollar value add...

by Yvil | 17th Apr 22, 12:42pm 1650156150

That's why I didn't say that cutting the trees alone added $1Mill...

by donny11 | 16th Apr 22, 7:30am 1650051008

Look at Waitakere. 1/16

by Bluff | 16th Apr 22, 7:46am 1650051986

Why the persistence with auctions? Such a waste of peoples energy, much more efficient methods that are minus the emotional PT Barnum style games the RE industry relies on to maximise their commissions, marketing back handers & volume/turn over.

by live4ever | 16th Apr 22, 7:58am 1650052701

Two reasons - on less desirable properties, an auction helps show an out of touch vendor that their asking price is no longer realistic. On desirable properties you may still get into a bidding war situation.

by taimaiakka0 | 16th Apr 22, 8:03am 1650052981

Why not Auction

Once upon a time during boom, real estate justification was that in auction market determins the value, so why not now.

What real estate agent does not say was that they were trying to exploit FOMO to get high price.

Now, Market is determining the value FONGO

by kwbrn | 16th Apr 22, 8:33am 1650054806

Because auctions require the least amount of work for the agents. Same with open homes.

Looks like we are in the situations that we will soon have more agents than houses for sale. We need more workers in horticulture.

by EdwardD | 17th Apr 22, 2:12pm 1650161534

I totally agree. I've been looking for a property for a couple of months now and don't even look at anything being sold by auction.

by Dgm | 16th Apr 22, 8:01am 1650052888

All doom and gloom in the housing market

There is more talk about mortgagee sales on the horizon

by andrew6 | 16th Apr 22, 8:36am 1650054973

It takes normally six months for mortagee sale to trigger so its effect will be felt only by end of year or early next year.

by Dgm | 16th Apr 22, 8:04am 1650053064

Looking at the sales in the north shore, looks like the vendors are more realistic...

Do they know something that the rest of Auckland is missing?

by Zen20 | 16th Apr 22, 8:46am 1650055611

Unless you live on beachfront Taka or Devo and don't have to go anywhere, the Shore is a dead horse

by andrew6 | 16th Apr 22, 9:00am 1650056408

Worse hit will be newly constructed matchbox houses in Auckland.

Not very popular and were selling only under FOMO ( Better than not having house feeling) and now supply will grow at much faster pace than demand in that segment and more important will be holding capacity of first time mum n dad builders as time will come when they will be happy to sell as long as not making loss or with minimum loss.

House on our street was demolished and four small townhouses were built on it and are in market since few months but the owner is rich Asian so has now decided to rent them out to avoid selling in loss and is possible as is cash rich but not all new first time builders may be in that posistion and some may have overstreched under advise from friendly real estate expert.

by HouseMouse | 16th Apr 22, 9:49am 1650059360

Yes that sector is going to be a bloodbath, for both recent buyers and developers.

by hum | 16th Apr 22, 11:02am 1650063731

There is so many of those now, if rented it will be really low.

Will also need maintenances as this developers used the cheapest materials if they planned to sell it in the first place.

by HouseMouse | 16th Apr 22, 7:33pm 1650094436

Yes there’s going to be a huge oversupply of new two bedroom townhouses for rent. You can see it building on TradeMe. Lots of the places sit around for weeks, and then ultimately reduce 5-10% in asking rent before they are let. Quite high turnover too, it seems, if the rental properties where we live is anything to go by.

poor investments, in my opinion.

by Brock Landers | 16th Apr 22, 10:42am 1650062578

Be quick!

by hum | 16th Apr 22, 10:53am 1650063181

If we really wanted a free market, sellers should not be allowed to have a reserve price and the the sould go the the highest bider whatever the bid is.

by Jaf | 16th Apr 22, 4:35pm 1650083708

Vendor's Bid!!! How on earth can a Vendor buy his own property? Ridiculous & a phony bid to pump up prices at auction.!

by Brock Landers | 16th Apr 22, 11:06am 1650063965

Nothing wrong with having a reserve price. But it should be required to be disclosed 14 days before the auction.

by DTRH | 16th Apr 22, 12:40pm 1650069650

Auckland housing market is so over valued even if people started selling 30% off they would struggle.

by Nifty1 | 16th Apr 22, 12:59pm 1650070763

Does anyone have any examples of 'bargain' or 'discounted' prices in Auckland...in particular North Shore? I'm not seeing it yet. Still seems to be quite abit of demand at well presented properties and in good locations. I've come across some properties with multiple preauction offers.

by Zachary Smith | 16th Apr 22, 1:14pm 1650071661

That's a very good question. The doomers are going to have to front up or shut up on this matter soon.

by HouseMouse | 16th Apr 22, 1:29pm 1650072579

Why?

Official data, rather than anecdotal sales observations, is the best measure, and the HPI is showing Auckland as being down 8% from peak, so far.

Of course there are always exceptions to averages, on both the up and down sides.

by Zachary Smith | 16th Apr 22, 1:35pm 1650072924

I just wanted to write "front up or shut up" because it sounded badass.

It would be interesting to see a genuine bargain though. Very hard to judge. I suspect these khaaaark clowns wont buy even when it's staring them in the face.

by Nifty1 | 16th Apr 22, 3:13pm 1650078808

What type of properties are selling lower HouseMouse? Crap X rentals in crap locations? Or is it across the board? This is where boots on the ground helps get a good feel of what's actually going on.

by Yvil | 16th Apr 22, 1:49pm 1650073795

Are you in the market to buy a house in the North Shore Nifty?

by Nifty1 | 16th Apr 22, 2:27pm 1650076020

Always looking for a bargain Yvil...

by ex agent | 16th Apr 22, 2:45pm 1650077135

Be patient. You might not hit the bottom which is a long way off yet. Increasing interest rates and a worsening cost of living in general are going to make life hard for many of us unfortunately.

by HouseMouse | 16th Apr 22, 3:41pm 1650080502

I know not everyone is able to, but we stocked up on a lot of day to day, household items and clothing / footwear late last year, mostly on sale with big discounts, as a hedge against inflation.

That was also a reason why we bought a new townhouse 2.5 years ago with all new whiteware, and a 10 year Masterbuild guarantee. With the Homestar certification nearly done, we will also be eligible to get a 1% discount on our mortgage rate. We also bought a new car, which we will pay off end of this year. We shouldn’t have any big expenditures over the next 5 years.

Also, I have just been to the supermarket and while prices are certainly up, I think if you shop smart and also make some healthy diet decisions, the pain at the supermarket check out can be limited.

by Albert2020 | 17th Apr 22, 9:28am 1650144512

I’ve never understood why someone would buy a brand new car on finance? Seems like a great way to lose money twice.

by HouseMouse | 17th Apr 22, 9:37am 1650145049

That’s what I used to think, but not anymore. We put 50% down and zero interest on a 3 year loan.

I have had so many issues with second hand cars in the past that have cost a small fortune. Once we have paid the car off late this year we should have at least 7 good years with the car.

by realterms | 17th Apr 22, 12:15pm 1650154545

0% finance will be much more valuable as interest rates increase. Two years ago when homeowners had access to 2% finance, not so much.

by Nzdan | 17th Apr 22, 10:20am 1650147627

Peace of mind motoring. As HouseMouse states, we have also had problems with second hand cars. Our last car (a Toyota bought at 150k) we ended up spending over half what we paid for the car in fixing things. Power window, alternator, valve cover gasket, water pump, steering control arm to name few.

It's not so much the cost of the repairs, although I can think of better things to the spend money on, but it was the hassle of it all. So we ticked up a brand new Toyota on the mortgage last year, our mortgage was around 1 x DTI so we had room to do so. Never looked back.

by Albert2020 | 17th Apr 22, 10:43am 1650149015

That’s kind of what to expect if you buy a second hand car with 150k on it. Try a car 2-3 years old with under 50k and that’s the sweet spot for not paying a premium to drive the new car off the lot.

by HouseMouse | 17th Apr 22, 11:57am 1650153440

Is 0% readily available on used cars 2 or 3 years old?

for us the 0% finance was a big draw card.

by Albert2020 | 17th Apr 22, 7:09pm 1650179362

No, I wasn’t suggesting it was. Just pay with cash.

by HouseMouse | 17th Apr 22, 8:09pm 1650182998

Not that many people have 20 or 30K in cash just waiting to spend like that on a car.

I'm VERY happy with our decision and purchase.

by tuisbest | 18th Apr 22, 9:45am 1650231904

In my neck of the woods, this place sold for $1,180,000, which is 17% under its CV (of $1,425,000) and for 30% under its QV (of $1.7M):

https://rwhowick.co.nz/properties/sold-residential/manukau-city/northpa…;

by Tee | 17th Apr 22, 10:39am 1650148784

Trying to make some sense.

25% clearance rate - this portion of buyers and sellers expectations were met.

75% could not agree.

The majority of vendors expectations exceed that of willing buyers. But, we do not know if any were sold after the auction by negotiation.

From the low sales numbers, is it safe to say that some vendors chose not to sell.

In Auckland, lots of townhouses are popping up. Some buyers will choose these.

Prediction- the price of older rentals will be the first to go, should a correction happen.

by realterms | 17th Apr 22, 12:16pm 1650154601

> But, we do not know if any were sold after the auction by negotiation.

Generally, sold straight after is counted as sold at auction by REA.

by ex agent | 17th Apr 22, 3:38pm 1650166738

Where I live the houses in the $2-$6m range are not selling. They have been on the market for months. Especially the large character homes. As interest rates rise this will only get worse.

by Averageman | 17th Apr 22, 4:29pm 1650169752

Absolutley. Seen stuff for sale at crazy markups that have not sold in the last 24 months. Usual formula, auction, the POA, the priced, and the a 25% discount and still not sold. The only thing stopping people selling anything in the last 24 months has been excessive greed.

Hows that greed taste now...?

by Market Interest | 17th Apr 22, 5:24pm 1650173047

You have to wonder...how many people can actually afford to buy a $2M-$6M property? We must be talking somewhere in the top 1%, so new entrants to the bracket would be few and far between.

by swapacrate | 22nd Apr 22, 4:10pm 1650600621

I found this so I would say a lot less then that.

"Tax data from Inland Revenue highlights that the number of earners who earnt over $150,000 a year has risen from 19,240 in 2001 to 110,650 in 2018, and the number of people earning $250,000 has gone from 5470 to 32,430. As a proportion of all earners, in 2001, just 0.64 per cent of all earners made over $150,000 a year. In 2018, that figure rose to 2.87 per cent."

And that is earning over $150,000, with the way costs of rent, petrol, food and beer have gone up. Nowhere near enough to buy 2mill plus houses. I earn't over $200,000 before I became a pauper trying to start a business up and I struggled to buy the kids apple juice and cake when I went to a cafe for a treat. You buy 2 coffees, 2 apple juices and 4 cakes and that's probably $40, then if we went for ice cream that's about $8 for 2 easy. Thats on top of rent or mortgage you would be lucky to save for anything. Thermos flasks with your own coffee are your friend and muffins from New World. So 2 mill plus houses not sure who's buying that.

by Yvil | 17th Apr 22, 7:01pm 1650178895

The HPI suggest otherwise. Median prices have still gone up in March whilst the HPI is down, this means one thing, expensive houses are selling more than the lower priced houses

by HouseMouse | 17th Apr 22, 8:17pm 1650183441

Exactly right.

Although it certainly does not mean the market for expensive homes is buoyant. It's just that it is less sickly that the market for lower priced homes.

I imagine the ass-end is falling out of the shoebox townhouse market.