The number of properties being auctioned by Barfoot & Thompson continues to decline although the sales rate is barely moving.
The agency marketed 106 properties for sale by auction last week (4-10 June), down from 118 the previous week and 128 the week before that.
Of those, 20 properties were sold under the hammer last week, giving an overall sales rate of 19%, barely changed from 18% the previous week and unchanged from 19% the week before that.
At the auctions where at least 10 properties were offered last week, the highest performers were properties in Rodney with an overall sales rate of 30%, while properties in Manukau and Waitakere lagged well behind, both with overall sales rates of 13%.
The table below shows the sales result for each district.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz and the results achieved, including the selling prices of those that sold under the hammer, are available on or Residential Auction Results page.
The comment stream on this article 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.
73 Comments
Tony Alexander - THE INDEPENDENT EXPERT :)
https://www.oneroof.co.nz/news/tony-alexander-we-are-nowhere-near-capit…
He always seems to be a couple of months late, and a buck short.
Leads with the statement "The number of properties listed for sale is rising quite quickly" - Didn't it have a huge surge a couple of months ago, and been reasonably static for last 2-3 months?
Has been hovering around 18-19% last couple of months. May remain at this level but doesnt mean prices will stay the same.
But the major headwinds are still to come
Raising interest rates - lags about 12 months as those on fixed coming off
Inflation
Tony Alexander: be aware of a whip back
Sounds like 'be quick'...
Revealed: The true identity of CWBW.
... would it help if we transitioned house prices into a traffic light system ... the days of the green light are past us ... we're slowing down , entering orange ( or amber , if you're in a posh suburb ) ... still no sight of the dreaded red light ...
There is no doubt auctions have fallen out of favour in our current situation. What a massive change in that only months ago you could not miss at an auction.
Next will be vendors accepting that their property is not worth what it was this time last year, and that the longer they wait the less it will be worth.
Around 4 weeks ago, over 100 people were convinced the best way to market their home was auction, despite recent stats showing it was very likely 80% of them would have no success.
I can understand sellers not being au fait with latest stats, but how on earth does an agent pitch up and say "I think Auction is your best bet" with a straight face....
For that very reason, people are just not up with the play with the market and go with whatever the RE tells them. Pretty much the same as your Doctor, do you ever question their diagnosis ? People go with what they consider a "Professional".
No matter what the market, there's a case for a small number of houses and situations to go to Auction. Even in really sick overall housing markets, I've seen hotly contested auctions for certain properties.
But yeah for 200 square metres of suburban bliss, this isn't the best time for auctions.
Personally, Carlos, I do not consider real estate agents to be professionals.
They are commission sales people who work in the real estate industry (which I don't regard as a profession).
Many of them appear to put financial incentives before ethical incentives.
TTP
..... much like Property Brokers😆
Slightly different. A doctor has little incentive to misdiagnosed you. A real estate agent has a massive incentive to make you believe you should buy/sell, their livelihood depends on it.
What a terrible analogy.
about 1 in 5 getting a sale.....
I do think some agents have used auctions as a device to make it clear to homeowners, with unrealistic expectations, exactly what the market is like.
‘ok you think it’s worth 30% above CV - let’s put it to the market and see’
If it gets the seller to appreciate that the market is turning/has turned, it’s probably a better strategy than letting it sit vastly overpriced for months.
Exactly. The auction is just the beginning of the marketing campaign. It's an extra grand or so but often worth a shot. Sellers may sell for a little less at auction because it is less hassle however all the advertising and paperwork has been done and the house can now have a price or be offered for sale by negotiation.
The industry is conditioned to operate this way. Changes to best operating practice will take time to change.
This time last year 60% sale rate & 165 properties taken to auction...https://www.interest.co.nz/property/110833/barfoot-thompson-auctioned-f…
Thank you for posting this. Last year this time in Manukau, 29 out of 50 houses sold at auction. It is down to 3 out of 23 for this week. Ouch.
Oh oh…. looks like the virus has spread to the shore.
wonder when Queenstown will start to get to get a runny nose?
Nice to see Tony using street vernacular : " selling off their crap " ...
... I'm guessing " crap " is a property " containing rats and parasites ? "
The 2 legged variety
House sellers hoping to get that price, so that bank balances are replenished.
People who bought in November 2021 are so incredibly screwed I cant even...
... makes me wonder if they have any recourse against Adrian Orr & Grant Robertson ... who were the enablers and spruikers of the last deadly leg up in house prices ....
I didn't notice a single word of warning or complaint from the National/ACT opposition when the OCR was dropped to record levels as was happening in the rest of the world. The OCR is set by the Reserve Bank not Robinson. Maybe your comments belong in the last century over at kiwiblog.
That’s just not true. Many, many people warned that this would be the consequence of printing money.
Seymour specifically here in Nov. 2020 was right in the money -
‘Seymour said the country was monetising its debt, avoiding hard choices and instead giving itself artificially low-interest rates.’
“Currently the Reserve Bank's irresponsible approach to liquidity of the New Zealand dollar is inflating asset bubbles, it is meaning a generation of young people watch the future get further away from them as a result and that is a recipe for political dissatisfaction and unrest," he said.’
*edited to add a missing speech mark.
https://www.rnz.co.nz/news/political/430415/act-party-leader-david-seym…
The house price crash is now picking up speed. Rates will continue to go up with inflation NZD sinking putting more pressure on inflation. People who purchased in last 3 years will have lost deposit and be in negative equity over next few months, building companies going insolvent , expect the rental market to explode with people trying to recover some funds from overpriced properties eventually this will lower rents
I know someone keeps mentioning the Princes of the Yen docu…. On YouTube.
I finally got around to watching it.
a very good watch!
it briefly mentions the large amount of suicides
i do wonder if people like Tony and the NZ banks have any idea of the level of suffering we might be about to see….and social change
sad really
if you haven’t seen it you should as itsan easy hour that will leave you better informed
It's in revelations people!
Thunderbolts and lightning
Very very frightening.
I think you have your bible and Queen songs mixed up there🤡
There's a little bit of crazy town crier in all of us.
it briefly mentions the large amount of suicides
i do wonder if people like Tony and the NZ banks have any idea of the level of suffering we might be about to see….and social change
It’s a great documentary. And some people are going to be caught swimming naked in NZ in the next few months. But Japanese and NZ society are chalk and cheese. There will be some carnage, for sure, but I’m not so confident that it will mirror what has happened offshore in the past.
Just listening to a Propellor Property Investments advert on radio telling me that I should use a "small part" of the equity in my home to purchase an investment property as it will double in value every 10 years and is simply the only way I will ever get ahead.........................oh the irony!!!
... your $ 600 000 will double in 10 years time ...
So , in a decade you've got $ 600 000 of " free " money ... they say ...
... there must be something about misleading claims in the Advertisibg Standards Authority's statutes ...
Ironic why? Is it because house prices have gone down by 4.9% so far, that you think they won't double in value every 10 years, despite them having done so over the last 3 decades?
... unless inflation is running rampantly for decades , and wages surging annually ... how is it possible for the performance of the past 3 decades to be repeated ahead ...
Unless , we move into negative interest rates ...
... it's just not gonna happen ...
Well I certainly hope it doesn't happen, but I am not so certain it couldn't. Back to low interest rates and 50 year mortgages would go a long way to another doubling. Never underestimate how many 🐇🐰🐇 in the hat.
If they do allow 50 year mortgages (as they do in some countries) then I would hope the young people would take to the streets in protest.
... agreed , anything is possible ... but , you do have to wonder that an underpopulated low wage economy with poor productivity levels at the far flung end of the planet has higher house prices than those in Germany , the USA ... regular developed rich countries in the geographic middle of their markets ..
If I wanted to guess:
- Germany has a declining population and a large number of competing nations not very far away.
- The USA is a large economy with more options for cheaper housing. And lots of cheap illegal labour to build it.
I think if we remove a whole bunch of restrictions for new housing, and import lots of low wage labour, we can get there.
Don't you know Gummy? Property prices doubling is an irrefutable law of the universe!!!!!!!!!!
... so saith the high priest of real estate , the irrefutable leader of our mighty new religion , the Ashley Church : praise be thy name , Saint Ashley ...
Property prices doubled in the last 10 years in Ireland. Just ignore the 70% fall that preceded this doubling. Oh and they're still 10% off their 2007 peak.
Fast forward to 4 mins 18 seconds into this video. I know, I know, he's just one guy but he happens to be worth a lot of money and knows a thing or two. What he says here is 100% what I see happening (unless rbnz have one last attempt to save the reckless borrowers).
I won't open it but can I guess, is it Peter Schiff?
Buy gold everyone, it's about to end!
It's Meet Kevin a very famous youtuber. The gist is that the supply narrative is BOGUS. Supply exists now and prices are being lowered whilst interest rates go up along with the cost of living. He is getting ready to go shopping when that cocktail is served up.
Ah, meet Kevin. He does know a lot of things. He was also about 16 during the last decent downturn.
It does seem like the central banks are going to kill off a bunch of zombies, then stimulate. So "wait and buy in the dip" is conventional financial wisdom.
I wouldn't trust the central banks that much. At some point they will have to send a message not to depend on them to keep kicking the can.
Politics forces can kicking. That and social unrest.
... thanks for posting that link : Kevin bloody knows his stuff ... awesome : cheers !
Lol better buy his courses aye... it's how this guy makes alot of his money.
This is worth watching. It explains where we are heading perfectly. The follow up is bang on too.
There is a big difference between US, AU and NZ housing markets. Another consideration when looking at the global picture is that AUD/ NZD as risk currencies could be able to act as a buffer to the local stock market and housing market. As the AUD/ NZD devalues, it makes it cheaper in USD terms for global investors to come in to pick up assets on a the cheap and wait for the global economy to shift into full gear again. I'm thinking this is one reason why Jacinda is meeting with Blackrock to discuss securing single family residential homes (in NZ) on the cheap in the coming years, which what they've been doing in the US for years and years.
One of the biggest differences between the three markets is that our market is significantly more vulnerable than either of the other two.
.. someone here threw out some stats which showed that on a ratio of total house price values as a ratio of the nation's GDP , NZ was twice as overvalued as the USA ...
Orr & Robbo have painted us into a corner ... our economy is in a vulnerable position ...
Gummy this hot potato has been passed around for a dozen years
It just so happened when the music finally stopped these two were left holding it
... in my opinion , those two grabbed the hot potato willingly , chucked it back into the embers , then poured petrol onto the fire ...
They're not innocent saps , they're not patsy's
Colin
Which assets would they buy?and why?
We have already sold the forests, the vineyards, the utilities like rubbish collection.
The farms are mostly privately held.
Many companies aren’t going to be worth much if they are linked to housing and the NZ local economy.
Sure we can let immigration and tourism run riot but with high unemployment I question this too.
Either way I can’t see this being good for New Zealanders standard of living.
It's a terrible market to sell through auctions. Auctions work well when there are at least 2 or more buyers competing to buy. Now there is on average less than 1 buyer per auction, so the auction process is a very bad sale technique. Vendors must acknowledge the change of circumstance and sell with a price sticker
Many seller are sold a crock by the agent, starting with "price" first, and "auctions are best" second. One gets the listing, and the second commits the seller to costs and auction pressure.
Auctions aren't very expensive.
Ok. Why do the agencies, agent never offer to pay the costs of one then?
Can anyone tell me why someone would buy a townhouse off the plans from a developer with zero track record?
Coz the brochures look pretty...
haha, yeah.
I just don't understand why anyone would do it. Even buying off the plans from 'seasoned' developers can be fraught.
I know someone who did, and the rookie developer is going in to liquidation....
I did warn him.
There's going to be lots of ugliness and carnage over the next 12 months in property and real estate...
Printer8 said they would be a "success"?
... 'cos the ladies shown posing in the townhouse photos look better than Nadia Lim in a bikini , coated in a warm pasta sauce ... boobies hanging out ...
Setting the bar low there.
Watch any of the cricket last night mate?
good stuff from the Black Caps. Our fears of another top order 'Calypso Collapso' were allayed!!!
Has been hovering around 18-19% last couple of months. May remain at this level but doesnt mean prices will stay the same.
But the major headwinds are still to come
Raising interest rates - lags about 12 months as those on fixed coming off
Inflation
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.