Overall sales rate drops to just 16% at Barfoot & Thompson's latest auctions

Property / news

The number of properties offered dropped well below 100 and just 16% sold under the hammer at Barfoot & Thompson's latest auctions

18th Jun 22, 6:33am by Greg Ninness

A chill wind blew around Barfoot & Thompson's auction rooms this week with both the number of properties being offered and the sales rate dropping.

Just 80 properties were offered at Auckland's biggest real estate agency's latest auctions (11-17 June), down from 106 the previous week and 118 the week before that.

Any drop in auction numbers to below 100 would have been significant but such a big fall was particularly notable.

On top of that just 13 properties were sold under the hammer, pushing the overall sales rate down to 16%, after it had hovered at 18% to 19% over the previous few weeks.

Only four districts - North Shore, Waitakere, central suburbs and Manukau had sufficient numbers of properties auctioned to provide meaningful data, and the sales rates at those ranged from 9% for Waitakere properties to 31% for those on the North Shore. (See the table below for the full district results).

Details of the individual properties offered at all of the auctions monitored by interest.co.nz and the results achieved, including the prices of those that sold under the hammer, are available on our Residential Auction Results page.

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67 Comments

by Albert2020 | 18th Jun 22, 6:42am 1655491345

TA released the results of a survey to brokers and potential homebuyers detailing their experiences trying to obtain bank lending. Very interesting reading and confirms at least anecdotally that sourcing lending is still extremely hard. Until that turns around these abysmal results will continue.

by HouseMouse | 18th Jun 22, 7:55am 1655495721

Do you get his newsletters? Has he shown any humility around his nonsensical forecast in January of +5% increases in house prices in 2022???

by Albert2020 | 18th Jun 22, 8:38am 1655498281

No I haven’t seen him acknowledge that error and I suspect he won’t.

by Nifty1 | 18th Jun 22, 8:58am 1655499529

He still thinks house price growth will be 5% per year - *in the future*. All is well...stay engaged in the market everyone...

Independent Economist Tony Alexander, 'Tonys Thoughts' Video (Just ignore NZ Home Loans as a sponsor - irrelevant): https://youtu.be/8AQe4jWWDe8

by HouseMouse | 18th Jun 22, 9:07am 1655500028

Hehe

Such an objective economist. Couldn’t possibly be influenced by all his real estate sponsors!!!

by Smudge02 | 18th Jun 22, 9:15am 1655500534

I heard him interviewed the other day and he was banging the “properly will double in value every 10 years” drum. When someone actually put some factual heat on him he changed his tune to “Well I expect property to double in the next 10 years but not sure after that”. Ha, so the gravy train will continue until you and your mates are ready to cash out and retire but who cares after that!

by sparrow | 18th Jun 22, 11:10am 1655507406

If First Home Buyers get in distress they should band together and have a go at the NZ Herald, Ashley and Tony.

by Nifty1 | 18th Jun 22, 11:50am 1655509839

And achieve what exactly...

by Millennial_Woman | 20th Jun 22, 12:25pm 1655684708

What's the worst penalty for someone unqualified giving bad financial advice, or even someone qualified giving bad advice (in the case of brokers)? Maybe they could start there. Loads of evidence in past advertising, media and FB groups.

by EarlyRiser | 18th Jun 22, 3:00pm 1655521254

Yeah, no-one should have to take responsibility for their own actions....

by Nzdan | 18th Jun 22, 5:17pm 1655529475

If an electrician says you can have a certain type of heat lamp in your house, they install it and the place burns down who is liable?
If a plumber says you can have mains hot water in your house, they install it and the place floods who is liable?
If the bank says you can borrow $800k, they lend you the money and the economy tanks who is liable?

A part of trades and many businesses deriving an income is to provide a service, knowledge and expertise. We part with our money with the expectation that risks are handled, why should banks get a free pass through reckless lending? Not everyone is an expert in finance like you, they might be an expert in something you're not good at like electrical work or plumbing or fixing cars.

by Nifty1 | 18th Jun 22, 7:14pm 1655536453

Not everything is in the control of these 'professionals', they could do everything right and something still goes wrong. Sh*t happens... I guess that's why we have insurance.

As for NZ Herald, they're not in the business of giving professional financial advise, they offer news & opinions pieces. If you genuinely think you've had financial advise from NZ Herald and you acted on it, you should report it to FMA. If you're just looking for someone to blame because you're regretting your decisions, you should just look in the mirror.

by tuisbest | 18th Jun 22, 7:10pm 1655536249

Very good point, Nzdan.

by Eschaton | 20th Jun 22, 7:51am 1655668261

More bankers in Parliament as of this weekend. Yippee.

by Beanie | 18th Jun 22, 10:56am 1655506572

Hang on Housemouse, in your 2022 predictions you said house prices would fall 5-10% but wouldn't rule out modest gains. Hardly a barge pole away from Tony's "nonsensical forecast".

by chebbo | 18th Jun 22, 9:34pm 1655544890

I find this whole obsession with trying to predict things a bit silly. It seems to be like a fetish for some people here; being able to point back to something they said 6 months ago which turned out to be right, and saying "see! I told you so!".

by Averageman | 18th Jun 22, 8:47am 1655498832

TAs newsletter highlighted that most are getting denied credit or rolling existing debt especially if you are over 50. It also underlined that unless you have high equity AND high income the banks treat you with a very long pole.

The ponzi's foundation is dirt cheap credit. That is gone. My nieces LL just announced his intention to put up their rent 60% from an already premium amount. All five found other houses to move and left the cockroaches, drafts and leaks behind.

Perhaps he wanted to develop the rotbox. Good luck with that at the moment.

by HouseMouse | 18th Jun 22, 9:08am 1655500136

Good on them. Huge choice for tenants with large and rising rental listings.

by malamah | 18th Jun 22, 7:11am 1655493079

Maybe both buyers and sellers are starting to realise the market conditions. Will be interesting to see the national results.

by Zachary Smith | 18th Jun 22, 7:36am 1655494560

Papakura looks hot, Rodney a bit average.

by The Black Swan | 18th Jun 22, 7:42am 1655494967

In the next 59 days the RBNZ will have most likely hiked the cash rate by 100 bps. Maybe more if CPI is a shocker on 18th July. The rock is now meeting the hard place on the property market.

by Dgm | 18th Jun 22, 9:01am 1655499713

Is the next review on the 13th July?

by Carlos67 | 18th Jun 22, 11:52am 1655509933

Correct. We have a total of FOUR more before the end of the year. Plenty of time for "Upward valuation". Be Quick we all know where this is heading now.

by Carinaz | 18th Jun 22, 7:50am 1655495458

Pace of fall in house prices as truly begun now.

A property that went to auction with expectation of 1.2 million to 1.3 million was listed at 1.195 million after the auction failed and today asking all buyers over one million (reason mentioned : Australia bound vendor) and real estate agent is now expecting it to be sold over weekend, it should but what if still unable to offload.

Also free section houses - old but with section that had jumped from $950000 to 1.2 million to 1.4million plus are now back, asking between 1.1million to 1.2 million.....Will they fall back to million....to be seen.

by Fitzgerald | 18th Jun 22, 8:42am 1655498539

Easy come, easy go.

by HouseMouse | 18th Jun 22, 7:53am 1655495635

Be Quick!!!!!!!

by house hunter | 18th Jun 22, 9:38am 1655501926

"This is the One" as the Stone Roses might say.

by HouseMouse | 18th Jun 22, 9:41am 1655502099

Did you see my Fool’s Gold reference the other day?

Great band

by house hunter | 18th Jun 22, 10:23am 1655504616

Yes & yes!

Regarding "this is the one" I was thinking this really could be the mother of all corrections.

by HouseMouse | 18th Jun 22, 7:57am 1655495873

It’s two weeks since I wrote to the Herald. I emailed them on Wednesday for an update - radio silence.

next step - Press Council.

by Carlos67 | 18th Jun 22, 8:09am 1655496579

Good intentions but wouldn't waste my time personally. My success has come from mostly ignoring what other's are doing and just forging ahead.

by HouseMouse | 18th Jun 22, 8:13am 1655496827

I am a pretty principled person, but take your point.

by ex agent | 18th Jun 22, 8:24am 1655497442

I take it you are sitting on your hands and not buying anything as the housing market starts to move south. In fact you might even be selling the odd property. Tough times ahead for many in New Zealand.

by Smudge02 | 18th Jun 22, 8:18am 1655497101

I think it’s great, good on you HM.

by tuisbest | 18th Jun 22, 8:45am 1655498706

Good work, Housemouse. You have my support.

by DIYman | 18th Jun 22, 8:02am 1655496143

The bigger the rise, the bigger the fall,

Christchurch was slow to join the party, really didn't get going until late 2021, and now this weeks auctions mirrored Aucklands for the first time.

I would be more worried if I had bought in Reefton , or Westport, work opportunities limited, weather average to poor, rental income, marginal on a good day.

by Macrology | 19th Jun 22, 1:14am 1655558076

Agree. Christchurch hung in there for a bit with only a 4-5% price drop and clearance rates up around 60. Now it's gone cold this past week.

by taimaiakka0 | 18th Jun 22, 8:07am 1655496458

From 10% to 5% fall, we are now witnessing 15% to 20% fall. Based on current environment and financial condition, further fall of 10% to 15% is foregone conclusion. Will be interesting to see than what ?

by Solid_Granite | 18th Jun 22, 8:19am 1655497148

It's a giant curve, and at every step of the way as we travel over it, we look forward as if it were flat.

by IT GUY | 18th Jun 22, 8:27am 1655497671

Its going down like a fat dog on wet lino!

by DIYman | 18th Jun 22, 8:34am 1655498055

Hopefully the price of a hillux will follow

by IT GUY | 18th Jun 22, 9:25am 1655501109

You will be able to afford to buy the Hilux, running it may be another matter.....

by Dgm | 18th Jun 22, 9:07am 1655500059

The MAD days are eventually over.. it's weird just 6 months ago, a sale would rarely extend beyond the first open home...

One of the properties I had enquired had an offer on the day of the listing

by Nifty1 | 18th Jun 22, 9:14am 1655500481

Could be a good time for you to buy then DGM, less competition... I'm sure you'll be taking advantage of it.

by Dgm | 18th Jun 22, 9:35am 1655501745

I already own a property mate .

by Nifty1 | 18th Jun 22, 9:39am 1655501953

Ahh right, so you bought at the peak?

by Dgm | 18th Jun 22, 9:44am 1655502248

Just after the first lockdown.. but am looking to buy closer to the city..

by Nzdan | 18th Jun 22, 9:22am 1655500966

Saw the slow down happening in real time. We traded up in December (Wairarapa), started looking in May. Initially open homes were packed, everything selling by deadline. Found the place we wanted in November, our conditional offer was accepted. There was only 1 other offer.

They still ran open homes until we sold our place, drove past one day and it was dead. Our place sold, only had 2 viewings across 3 open homes and 1 offer (from a FHB thankfully). Was a renovated 3 bed starter home on 1/5 acre, 5 minute walk to the train station.

by IT GUY | 18th Jun 22, 9:33am 1655501585

ToThePoint has gone real quiet..... ZeroHedge has a good article on why the US House market is poised to fall hard (basically double monthly mortgage cost now vs 1 year ago). I remember even 2 months ago listerning to TA and Church rebutt negitive equity questions on NewsTalk ZB's property hour. The very fact that talkback radio was hosting a "Property Hour" was a clear sign the top was in, as is those stupid Propellor Property adds they run. That said they have had a good run, those Manurewa crappers they started selling after the GFC at 350k got past a mill each before their current owners became the bag holders. See that only 2 of 21 I think sold in Manakau by auction last week. Negitive Equity here we come......

by Smudge02 | 18th Jun 22, 9:47am 1655502438

ToThePoint has gone real quiet.....

I have no doubt that very soon the likes of TA and Church will go very quiet as well!

by Beanie | 18th Jun 22, 10:46am 1655506016

Watched Bernard on telly this morning. He was being interviewed about economy, interest rates, house prices etc. I noticed he never gave his own opinion, he always referenced someone else's opinion. He has learned his lesson that in the last 20 years things don't always go the way they 'should'.

by Justa comment | 18th Jun 22, 12:35pm 1655512524

Yes Bernards staying low/poss neg OCR forecast was completely wrong in hindsight..........

by Ideapenny | 18th Jun 22, 2:19pm 1655518792

TA and Church will change from "i told you that you should have bought a house" to "i told you that you should have locked in a 5 year rate" or "i told you that the regions would go down less than Akl/Wtgn".

by Dale Smith | 18th Jun 22, 9:47am 1655502420

'Only four districts .........had sufficient numbers of properties auctioned to provide meaningful data.'

Is this journalistic speak for 'at least one?'

by LFCYNWA | 18th Jun 22, 11:38am 1655509081

American house prices will catch a cold but New Zealand is headed for the flu. Text books will be written of our irrational exhuberance.

by tuisbest | 18th Jun 22, 12:28pm 1655512114

Flu? Really bad case of Covid, I think.

by Carinaz | 18th Jun 22, 2:14pm 1655518465

Will NZ be referred, just like Ireland, whenever one talks about boom and doom in future.

Will NZ replace Ireland.

by Market Interest | 18th Jun 22, 3:56pm 1655524587

I think it's only fair.

After their rugby team finally beat the mighty All Blacks at home, it's only fitting that we remove their crown.

by andrew6 | 18th Jun 22, 2:34pm 1655519689

Price rise has been so huge that even after current softness, one is making a fortune.

A colleague had bought a house for $940000 in December 2020 and sold last week for 1.275 million.

Lot of noise about market falling but still a long way to go for any meaningfull correction.

by IT GUY | 18th Jun 22, 3:24pm 1655522645

There will be buyers all the way down........ probably not many of them will be investors

by Nzdan | 18th Jun 22, 5:20pm 1655529607

Some of that noise comes in the form of the REINZ Monthly Report (protip: REINZ = Real Estate Institute of New Zealand) where actual numbers are showing declines of 12% in Auckland since November. Your friend's anecdote means jack.

by Smudge02 | 18th Jun 22, 6:09pm 1655532541

Lot of noise about market falling but still a long way to go for any meaningfull correction.

With the momentum we are currently building, you may be surprised how quickly we get there. I don’t think many thought they would see a 30%-40% increase in 12 months, but it happened.

by David Murray1 | 18th Jun 22, 2:39pm 1655519984

So they're asking for too much compared with what buyers are prepared to pay. Sellers need to reset their expectations if they want to sell.

by NZGecko | 18th Jun 22, 9:10pm 1655543457

Yes its simply that when banks will lend the average middle class Joe/Janice a max of 500k ........ sellers will need to adjust to the average buyers capacity.

by Markus | 20th Jun 22, 1:43am 1655646196

The RBNZ would do well to cease further interest rate hikes. It is the wrong timing to increase rates into a beginning recession. It is what the central banks did in 1929. Wrong timing. Result: The Great Depression.

by tuisbest | 20th Jun 22, 8:43am 1655671415

And just ignore inflation, the way Turkey did?

by Crazy Horse | 20th Jun 22, 12:09pm 1655683788

Bring back "Taking The Proverbial" aka TTP, CWBW and a couple of others in that familiar vein .....I miss those "blanket all knowing", smug, "I know best" statements .....who knows, they might even help to curtail the slide in prices !

Not telling the real truth will eventually catch up with you ...whether tomorrow, in a few months or years.

Actually TTP would make a great car salesman - he has "pumped up" that old pile of junk sitting in the yard but when the customer comes back with a list of faults, as long as your arm, he's no where to be seen......