Auckland's largest real estate agency took fewer properties to auction this week but the sales rate was almost unchanged.
Barfoot & Thompson marketed 78 residential properties for sale by auction during the week from June 25 to July 1, down from 100 the previous week.
Of the 78 offered, 15 sold under the hammer, giving an overall sales rate of 19% compared to 17% the previous week.
Only three districts had 10 or more properties offered at auction - the North Shore with 15, the central suburbs with 30 and Manukau with 13.
The sales rates at those auctions ranged from 8% in Manukau to 17% for the central suburbs.
Details of the individual properties offered at all of the auctions throughout the country that were monitored by interest.co.nz and the results achieved, including the prices of the properties that sold, are available on our Residential Auction Results page.
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24 Comments
It surprises me that many people are failing at auction, often with no bids at all, then going to "price by negotiation". In a buyer's market you are not in a position to say, "Hey if you want to buy my place you need to give me a good offer". Especially in an average location.
Put a price on it, also not an 'offers above' price either. Buyers like to come in a bit lower than asking price and get that offer accepted. Telling the buyers to ignore the RV is not a bad idea if you are willing to accept a price lower than the RV.
I would also advise people to accept a profitable sale in the current market conditions. I am prone to pessimism but a bird in the hand may be worth two in the bush currently.
It's a balancing act. Obviously the lower you set your price the wider your potential buyer's audience, but you risk selling yourself short and end up attracting lower bids from people who would be willing and able to pay more for the property.
An initial "BEO $xxx,xxx Deadline" sale is probably a better method than going to auction, if you receive bids then accept the best one. If no bids, then list with a price.
I guess it's a personal thing but I would never, ever, engage in a deadline sale. People not accepting what I think are good offers are heroically helping to keep prices high so I shouldn't be too critical from a personal standpoint. Blinking too soon can result in a loss of money for sure.
Now mostly those FHB who are still scarred by FOMO are in market to buy and in last two years, the term million dollar or two million dollar was so casullay thrown around that still many buyers do not realise the cost in high interest rate environment. It would be a while before it sinks that what one will pay for $800000 mortage today - one could easily pay for 1.3 million if the interest rate was as low.
Many FHB are still in FOMO and giving some support. It is a matter if time before they too realize and back out.
If there's competition amongst sellers, then selling yourself short is what you must do to get ahead.
It is hard for many vendors to accept the new reality and also as the Fear Of Missing Out was so strong that many FHB are active and are still buying by overstreching - Though amount borrowing may have reduced but weekly mortage payment has increased drastically, still are rushing to buy, giving support and happy to enter with little fall as still suffering from FOMO and now it is this segment that real estate agents are targetting.
A fair percentage of selling listings where leaky apartments , a few sellors in great locations got good money still. this one was a shocker - land value down now developers gone..... homes.co.nz estimating 1.96 oneroof 1.85 purchased may 2020 for 1.08 so still a profit
Sold For $1,300,000
Rating Valuation: $1,825,000 https://homes.co.nz/address/auckland/mount-albert/45-stewart-road/JlZ2O
Not that bad.
According to QV: Last Market Sale on 04 May 2020 for $1,080,000
That's +220k in two years!
RV doesn't reflect true market value here and Homes and OneRoof have no idea because they largely base their estimate on the RV and houses sold in the same location. That previous selling price is the key factor.
photos ok, not bad result starting to think the RV was just too high....... homes and oneroof are useless for estimates
Any seller when marketing starts with top price that they expect ( to avoid selling it cheap, just as buyers are now afraid of over paying) and they only drops ( that too if serious seller) only after failing in the first step to get desired or near around price.
A unit/ townhouse in eastern suburb in good location, recently listed has expectation of 1.2 million plus ( CV 1.175 million), so are expecting more than CV. Could have fetched anywhere between million to maybe 1.05 million or may be 1.1 million, only for the location but is a complete do up ( untouched since 1970s) and icing on the cake, it has asbestos celing running through out the house,which itself will cost $40000 to $50000 to fix plus another $100000 for house renovation and it comes with deadline sell.
This unit should ideally in this market go for 900s but by asking a moon may get better price than in 900s by some FHB.
On the face of it, it looks like a good buy and shows there's some opportunities out there...
Would the neighbour's be kicking themselves- purchased December 2021 1.95mil...
https://homes.co.nz/address/auckland/mount-albert/47-stewart-road/Ljj1N
That's a really good find Nifty1. It shows the peak price of late last year although a somewhat bigger and better appointed house I doubt they would be happy to see what 45 got.
Treasury yields were clubbed like a baby seal today, extending the week's drop (5Y -30bps, 30Y -15bps)... market over inflation and already pricing recession
It’s interesting that speaking to property owners no-one ever contemplated that what happened in Ireland, Spain, Florida, Nevada etc could ever happen in NZ despite the cold hard facts indicating we had the most overpriced property on planet Earth.
We have been protected by the fed put for the last two recessions we got cheap credit instead of falling prices. It’s all been bad policy also the lack of cheap land and restrictions on what you can build etc. When u realise how far we are away from major affordability metrics simply because the Aussie banks where so happy to lend ….. it’s going to end badly for leveraged and the banks imho we need to look at income to prices back around 3.5
You made mega-bucks on property, why can't other people?
They can but we have run out of greater fools. If you buy at the bottom you will make money ….. it will overshoot below fair value Look for low maintenance high yield gd transport connections
Why can't everybody?
Some people will never have the skills to invest in property..... they rely on people on the radio selling help..... Everyone can put a few dollars into bitcoin. how many had a stop loss in to protect capital..... Answering your question how equipped is the median person to be able to do this... not very and by definition 1/2 at even less equipped. Life has never been fair......
Is that a serious question?
On the assumption it is, the answer is obvious because the maths says it is impossible for everyone to do it under a system that creates a boom and bust, a winners and losers cycle.
Hi Dale, no. You are right in calling it. The answer to my question should be obvious, but, surprisingly, not everybody finds it obvious.
My question was in response to Zachary wanting 'others' to also make mega-bucks in property. In that case, surely it would only be fair for everybody to be able to make mega-bucks in property? But yes, that could never happen and should be obvious to anyone spending even a little bit of thought on it.
And IT Guy believes that at least some people will always be able to make money - which is true, but I think that it would always require a good dash of luck. I'm not sure any investor can claim in advance that the someone who'll make the mega-bucks will be him.
I think the best we can hope for is an end to boom-bust cycles, where there are no mega-bucks winners, but also no mega-bucks losers. (Sadly, I don't think Luxton is the kinda guy who dreams of that playing out in NZ..)
Everybody should become a Landlord, then we can rent properties to each other.
Imagine how rich we'd all be, lol!
I look at listings, not new houses, quite regularly, and the ones that are not yet sold are those with high prices. After a month or two, asking price is shown, "offers wanted", "price reduction" and there are believers who stick to "enquiries above $xxx". Deadline sales often turn into PBN and "offers wanted" = > what vendors expect, sometimes.
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