Residential auction activity at a low ebb around the country

Fewer properties were offered at auction last week but the sales rate edged up slightly to 29%

Property / news

Fewer properties were offered at auction last week but the sales rate edged up slightly to 29%

6th Jul 22, 6:45am by Greg Ninness

Although there was a significant drop in the number of properties offered at the auctions monitored by interest.co.nz last week, the overall sales rate improved slightly.

Interest.co.nz monitored 163 residential property auctions last week (25 June to 1 July), down from 201 the previous week.

The number of properties that sold under the hammer declined to 47 from 51 the previous week. However because the rate of decline for sales was less than the decline in total properties offered, the sales rate was pushed up to 29% from 25% the previous week.

Nonetheless residential auction activity generally remains at a very low ebb. At the auctions monitored by interest.co.nz, only those in Auckland, Bay of Plenty and Canterbury managed to get auction numbers into double digits.

The table below shows the district-by-district results, while the details of individual properties offered at all of the auctions monitored by interest.co.nz, including the prices of those that sold under the hammer, are available on our Residential Auction Results page.

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13 Comments

by Averageman | 6th Jul 22, 7:09am 1657048165

Seriously sellers should stop using auctions. Unless you have something unique it's a waste of time and money. Time is precious in a falling market.

Next MPS review is a week today. Up again....but by how much?

by HW2 | 6th Jul 22, 8:03am 1657051435

Auctions are effective in a slow market, I know it very well

by tothepoint | 6th Jul 22, 9:41am 1657057302

Agree with your sentiments re auctions, Averageman. Generally, they're not a good bet in a buyers' market - although there's bound to be the occasional exception.

The problem is that real estate agents do well from auctions, so they talk vendors into it. 😤

TTP

by taimaiakka0 | 6th Jul 22, 8:23am 1657052612

House prices have definately fallen by 10% to 15% in Auckland, if not 20% and hopefully now should stabilize a little bit before further fall but if it continues with fall without taking a break, may be will see a free fall.

10% to 15% fall has been well absorbed by vendors and many who bought last year and unable to sell are able to digest this fall on paper ( as not selling) as are still hopefull but any further fall from here on will be a big catalyst that may force many to press panic button, leading to disaster.

Already experts in other countries have started to give refrence of NZ when talking about house price fall ( PONZI crumbling) though is still not on the same level as one talk about Ireland.

https://www.news.com.au/finance/economy/australian-economy/is-new-zeala…

by RichMuhlach | 6th Jul 22, 9:01am 1657054900

Ireland 2008 will be replaced by New Zealand 2022 when people talk about housing crashes

by JohnnyM | 6th Jul 22, 9:04am 1657055042

Early days.

by tothepoint | 6th Jul 22, 10:03am 1657058628

It's still slim pickings for buyers in the suburbs of Ponsonby/ Freemans Bay/ St Marys Bay/ Herne Bay in Auckland.

In Wellington, good family homes in the city suburbs remain very difficult to find.

Seems that owners of good houses in Auckland/Wellington's preferred close-in suburbs are holding on - not interested in selling.

I note there's now increasing speculation that interest rates won't go too much higher - and, in fact, might head back down in another year or so. Thus, the current correction might be shorter-lived than some people here have been anticipating......

Neither should we overlook the absence of mortgagee sales - which is always a blessing.

TTP

by Jesse1 | 6th Jul 22, 8:25pm 1657095951

I'm noticing the narrative in financial markets is changing each week around inflation, interest rates, growth, commodities. Increasing speculation that interest rates won't go much higher is just this weeks narrative and can easily be quickly forgotten about with the next inflation numbers or the next oil spike.

by General Comment | 6th Jul 22, 8:35am 1657053343

143 St Georges Rd (reasonably large, tidy house on 3Ha, desirable location) just outside Havelock North went auction last week. Opening offer of $2M from a lone bidder, persuaded into negotiation by an increase to $2.25M, back into the room after about 15 mins at a frankly surprising $2.6M (epic work by the auctioneer there)...and passed in. I was surprised by this, the offer seemed generous on the current market.

The only other property at the auction (another lifestyler in a less desirable area north of Napier) was met by a chorus of crickets.

So Hawkes Bay would have been a 50% result, albeit on small numbers, if not for an unrealistic vendor. I can only guess they're in no rush to sell.

by IT GUY | 6th Jul 22, 8:58am 1657054692

now showing as sold https://www.oneroof.co.nz/estimate/143-saint-georges-road-karamu-hastin…

by General Comment | 6th Jul 22, 9:41am 1657057302

Edit: Never mind, page finally loaded. Looks like the vendor gave in.

by IT GUY | 6th Jul 22, 8:56am 1657054602

14 The Parade - Buckland's beach sold 3.025mil at Barfoots yesterday last sold 2001 for 870k https://www.oneroof.co.nz/14-the-parade-bucklands-beach-manukau-city-au…; not much selling on Waiheke

by Averageman | 6th Jul 22, 10:14am 1657059299

Indeed. Look at 84 Great Barrier Road in Oneroa. Nice old very original batch on a largish NW facing section close to the boat access. Paid $4.6 in early 2021. Been back on the market with homes.co AI (Agent Inflated) pitching a million more. Right now they would be lucky to get their money back. In another 12 months would hate to think.

Hope they like holding it for the next 100 years.