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The number of properties offered at Barfoot & Thompson's latest auctions dropped below 100 but the sales rate was up a tad

Property / news
The number of properties offered at Barfoot & Thompson's latest auctions dropped below 100 but the sales rate was up a tad

Activity remained relatively subdued in Barfoot & Thompson's auction rooms last week although the overall sales rate ticked up slightly.

Auckland's biggest real estate agency marketed 90 residential properties for sale by auction last week (7-13 May), down from 102 the previous week.

Of those, sales were achieved on 26, giving an overall sales rate of 29%, up from 25% the previous week.

Leaving aside those districts where just a handful of properties were auctioned, the sales rates ranged from 18% in Waitakere to 41% on the North Shore last week.

The table below shows the number of properties auctioned and the sales rate in each district.

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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27 Comments

Seems like the days of auctions being the desired marketing method is over for the time being.

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6

Because the days of treating property like a Monopoly game are over.

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8

The ASB -20% call is sobering

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6

The falls won't stop at 20%.

Reason:    For years now, landlords have been buying property with the expectation of capital gains.   

Current rental yields do not make any sense once you take away the expectation of capital gains, and most new rentals are either negatively geared or making extremely low (lower than term deposit) real returns.    

Without the expectation of capital gains, the yield becomes important again.... and it is going to take price falls a heck of a lot larger than 20% before yields look sensible.

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18

Yes, yes and yes. It's a long way back to yield making sence.

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8

And once they do make sense, you’d need high cashflow, high equity to get the finance from the bank.

No more free money.

The hard working FHB with a regular income sitting on anything above 10% deposit now may find themselves in a world of their own in a year or so.

Still some cashed up investors will be around but term deposits will raise with high inflation and surely a better bet than the sour taste of a collapsed housing market. 
 

Id hazard a guess that some investors will make a fools run of it before realising that the math doesn’t add up and chuck it back on the market for circa no profit.

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1

Term deposits must have a higher risk premium than houses? (50% sarc). 

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There are banks I would not trust with money with at the minute…

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0

A good alternative to property investment is shares in public companies ... NOT

It is easy to add value to a property while waiting for the market to turn and then flick for a profit, if that's your preference. It is not mine, we are in for longterm, but the add value aspect is certainly viable 

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Successful week for B&T

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26 sold in whole of Auckland in a week, quite surprised they sold that many as the market is on way down not a great time to buy.

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10

Likely the only 26 buyers who managed to sell their property at auction over the last few weeks… 

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1

Lots of purchases made 4, 6, 8 weeks ago "subject to sale of our place" still to go.  Can't bear to back out..m just... yet.... 

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I was at Turner's.. saw an agent trade in their Audi

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19

Buying for speculation is not what it once was. Buying for yield has been out the window for some time.

So why would you as the tide retreats?

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3

Wow, Northland and Franklin had a 50% clearance rate. Amazing, well done!  (Just don't mention that they only sold 2 houses between them..)

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4

Posts like these on the property investors Facebook page won’t be helping

”Some agents have a strategy in Wellington of getting in early in the morning with their price drops before all the others load their price drops. Advantage to be first drop of the day! Got 22 price drops in 8 hours for Wellington this week. Its a record. Average drop was $150k or 11.33%.”

” When you see marketing campaigns like this why rush. One can make big gains buying when things are most distressed. This is just starting now. An auction in Auckland this week a house was sold for 861k and was purchased 28 Sept 21 sold for 1.320m so a 459k loss in 6 months. After agency and lawyers a 500k or 38%. Market will keep going down and just need to have cash to be able to buy. Thinking the best time is anytime is a fool's errand as many who bought in 2020 and 2021 are starting to learn as prices did not make sense cashflow wise. Rising rates will smash a lot of these buyers as it will be 7% very soon and the 8% and then 9% as inflation is not going away.”

just wait until this data feeds back into the valuation algorithms….yikes

 

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7

Those comments are probably from that Vinod guy that was banned here under the name '2022'. "7% rates guaranteed by the end of this year".

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What's the address for the property that you just use ? I'll like to have a look please.

There's this property which makes me laugh. Bought for 850k 1 year 5 months ago, asking price 1.1mil today. Head in the sand ?

https://www.propertyvalue.co.nz/auckland/auckland/ellerslie-1051/5-135-…

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Looks like it's been listed in November, so perhaps having a wee bit of difficulty getting a buyer who is enthusiastic about buying at that price?

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I've been having a good chuckle at this 2-bedroom property:  https://www.trademe.co.nz/a/property/residential/sale/auckland/manukau-city/northpark/listing/3545059866 Heading is: LUXURIOUS LARGE UNIT & HUGE GARDEN

It was first listed in January with an asking price of $1,395,000 (!!) and I took a screenshot of the ad because I found it so amusing.  Enjoy the bit where the ad says: "Inside this home is a whopping 110m2." How many people in first world countries would describe an floor area of 110 m2 as 'whopping', I ask you?  (Also, not sure where that whopping 110 m2 inside the house can be found, but OK, not everyone knows how to use commas.)  And be sure to check out the size of the so-called 'HUGE' garden!

According to homes, it last sold in December 2021, so it is anyone's guess why it was listed again on Trademe on 20 January 2022 (and then relisted again in April): https://homes.co.nz/address/manukau/northpark/16-fieldstone-ct/1eAQ 

The asking price on the ad in front of the house has now been covered up and replaced by PBN. So best of luck to the vendor, not to mention the REA.

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4

looks like that 110 square metres includes circa 20 square metres for the garage, so really it's 90 square metres. 

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2

This indicate how ridiculous house price were and still are.

Even with so called fall, house prices are still absurd and only a deep fall will make some sense.

Will it happen or will it be just cosmetic as fall of 10% or 15% fall will juust be cosmetic with the way they had moved up.

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5

If the vendor wants this place sold, he/she will have no other choice but the drop that price by a large percentage. 

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Guess I could email the agent asking him to amend the ad to say 'a whopping 90 square metres'?  :-P

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I actually went to this auction.

Some idiot bought this for 1.2Xm

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