sign up log in
Want to go ad-free? Find out how, here.

About a quarter of auction properties selling under the hammer in Auckland, Waikato and BoP, just over half in Canterbury

Property / news
About a quarter of auction properties selling under the hammer in Auckland, Waikato and BoP, just over half in Canterbury
10th May 22, 10:51am by Greg Ninness

There was almost no change in the number of properties offered at the auctions monitored by interest.co.nz last week, but the overall sales rate picked up a bit.

A total of 233 residential properties from around New Zealand were offered at the auctions monitored by interest.co.nz in the first week of May, compared to 230 in the last week of April.

Of those, sales were achieved on 71 properties, giving an overall auction sales rate of 30%. That's up from 23% the previous week.

In the areas where at least half a dozen properties went under the hammer, the auction sales rates ranged from 9% in Hawke's Bay to 54% in Canterbury.

See the table below for the regional sales rates.

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.

The comment stream on this story is now closed.

  • You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.  

 

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

19 Comments

by  Carlos67  |  10th May 22, 11:01am 1652137306

Rates seem to have bottomed out, thought they would go lower. Not sure you can fully trust the numbers to be honest I watched a live auction or two down here and they must pull in every sale either side of the actual auction and not include those withdrawn from the action prior. Actual rates looked more like 10 to 15% to me so they do everything to improve the figures.

Up
4
by  tothepoint  |  10th May 22, 11:14am 1652138098

A soft market is not ideal for auctioning most houses.

Some vendors are like whitebait - they're inclined to swim against the current.

TTP

Up
3
by  stjohn  |  10th May 22, 12:25pm 1652142358

Yep that's why we are seeing so many asking price / negotiation listings over the last few months. The games up. No more suckers to over-pay for a 40 year old house with single glazing.

 

Good luck to all investors who leverage existing equity to build their portfolio whilst interest rates were at record lows over the last 2years.



 

Water moves with the tide. In and out. Up and down.

 

TimeToPanic.

Up
8
by  Averageman  |  10th May 22, 5:40pm 1652161203

The new TTP haha. Palmy North down 5.4%. Be quick alright...to dump the specu box on a FHBer.

Up
3
by  AJ123  |  10th May 22, 11:24am 1652138672

Looking at the chart the auction sales seems strong, as 30% is not bad (people are still buying).

But while in auction room, I cannot see even a single bidder most of the properties which are sold under hammer are purchased outside auction room and labeled as sold in auction.

Up
8
by  Averageman  |  10th May 22, 12:38pm 1652143089

Would 100% believe that. Agency manipulation at auctions is well know. Similar to gambling, the Casino always tries to win.

Up
5
by  Carlos67  |  10th May 22, 2:37pm 1652150245

Which is wrong AJ123. Houses withdrawn because of no registered bidders at the last minute, houses sold prior to auction and everything not concluded at the fall of the hammer is not "Sold at Auction". I notice that when it doesn't sell its suddenly relisted as by negotiation, sometimes within 10 minutes after the Auction, anything then sold say days or a week later is not "sold at Auction". The figures are being manipulated to make it look a whole lot better than it is but 25% is like lipstick on a pig.

Up
1
by  DTRH  |  10th May 22, 11:44am 1652139875

1 million for small properties in Auckland you would think people would read the news as everything is telling people a huge crash has started.

Up
6
by  tothepoint  |  10th May 22, 11:52am 1652140336

Not likely, DTRH.

TTP

Up
4
by  DTRH  |  10th May 22, 12:08pm 1652141318

TTP Why? All indicators point too crash Inflation high interest rates going higher prices dropping average house in Auckland 12 x average wage couples incomes. TTP you really should observe what’s going on

Up
7
by  Nifty1  |  10th May 22, 12:36pm 1652142973

How long are those factors (high inflation, high rates etc) going to last DTRH? 

Up
1
by  DTRH  |  10th May 22, 1:33pm 1652146433

Nifty Rates depends on inflation and FED as RBNZ just does what it’s told, NZD is yet again tumbling which will increase inflation all a bit of mess, rates will never be allowed to go to emergency level again. The other item is 12 x average couples income for house will be a thing of the past they will hit 4 x average couples income at most so either huge drop in price’s or a rather large salary increase for average wage earners.

Up
3
by  malamah  |  10th May 22, 1:38pm 1652146698

Yea a great way to look at it. Something has to give to maintain the current cost of housing. Rates/swaps, inflation, Brightline, DTI and CCCFA restrictions would need to ease dramatically within the next 6 months, or wages would need to double or even triple to keep up.



If none of that happens, house price trends will continue. There is currently no evidence of a true market support in the housing market so it will need to be "found".

Up
0
by  JBA  |  11th May 22, 3:49am 1652197749

You'd think that support would be at a price where the rental house yield makes sense. That's a long long way down.. where could that put prices?

Up
0
by  malamah  |  11th May 22, 9:52am 1652219549

It's really difficult to make a call on it - there's a sudden influx of properties onto the rental market in some areas which inevitably will lower the prices, as is happening in Upper Hutt. So if a rent hike is needed to cover interest and new non-deductability, but overall the rental market is trending down, even slightly, then that's a two way pressure on house prices for investors. It could be 30-40% before the math adds up...



Otherwise, playing the long game would require significant ongoing personal investment to balance the books.



This article springs to mind: https://www.nzherald.co.nz/business/i-will-pay-300week-off-your-mortgag…

Up
2
by  Independent_Observer  |  10th May 22, 2:09pm 1652148580

Isn't it odd that our asset owners will need to start praying for a recession so that interest rates can be dropped again? (while praying even more that deflation and unemployment don't take hold?)

Why is this odd? Because its praying for a weak economy to justify high asset prices is paradoxical. It makes no sense.

Yet that is what has happened GFC - now......a deteriorating economy requiring lower interest rates resulting in higher asset prices. Its a fools paradise. 

Up
8
by  albinodog  |  10th May 22, 9:16pm 1652174186

Pray and hope that record low interest rates will come back and housing goes on a violent bull run again..exactly what FHBs were hoping and praying that this government would intervene over the last 8 years or so

What goes around comes around.

 

Up
0
by  RickStrauss  |  11th May 22, 10:15am 1652220906

Never miss an opportunity to live beyond one's means by passing bigger costs to someone else.

Up
0
by  Zen20  |  11th May 22, 6:42pm 1652251325

just like I have been predicting : the immigration pumps are being primed to go frrrrrrrrrrrrrrrrrrrrrrrrrr

Up
0