Just 10% of residential sales achieved by auction in July compared to 26% in July 2021

Auction sales rate dropped from a third to a quarter last week

Property / news

Auction sales rate dropped from a third to a quarter last week

11th Aug 22, 12:18pm by Greg Ninness

The number of properties offered at the real estate auctions monitored by interest.co.nz last week barely changed, but the number that sold under the hammer dropped from a third to a quarter.

Interest.co.nz monitored the auctions for 148 residential properties around the country last week (July 30 - August 5), compared to 146 the previous week.

Of those 37 were sold under the hammer, giving an overall clearance rate of 25%, down from 34% the previous week.

Auckland, Bay of Plenty and Canterbury were the only regions where the number of properties offered were in double digits and their sales rates were 19%, 8% and 50% respectively.

Overall, auction activity remains extremely quiet and the latest figures from the Real Estate Institute of New Zealand show that just 9.8% residential sales in July were sold by auction, down from 26.1% in July last year.

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

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14 Comments

by Caughtinthemiddle | 11th Aug 22, 12:21pm 1660177300

But TA says it's all changing and FHB's will return to the market as it returns to positive gains!

https://www.oneroof.co.nz/news/41988

I wonder if TA is following his own advice and buying up some bargains in the softer market to see those capital gains roar back in?

by Te Kooti | 11th Aug 22, 1:03pm 1660179791

Spare a thought for anyone who bought a resi development block in Auckland/Wellington in the last 2y years. With the current cost of construction, the land is now effectively worthless. There were some huge sales of 1200 sq/m sites in less salubrious parts of Auckland for $2m to $4m.

In fact, you'd be better off planting it in Pine and going into the ETS.

by RichMuhlach | 11th Aug 22, 12:45pm 1660178752

“fizzer”

by tothepoint | 11th Aug 22, 1:05pm 1660179943

Selling via auction in a soft market doesn't make too much sense - unless the property really is exceptional.

TTP

by MMXXll | 11th Aug 22, 1:13pm 1660180404

No Such Thing As A Bargain In A Falling Market .

Wait until 2024.

by Cur8or | 11th Aug 22, 12:55pm 1660179325

Good news!

by Yvil | 11th Aug 22, 1:24pm 1660181071

Greg, the title on Interest's main page states:

Just 10% of residential sales achieved by auction in July compared to 26% in July 2021

No doubt clearance rates are very poor but 10% doesn't sound right?

by Yvil | 11th Aug 22, 1:25pm 1660181102

Maybe the title means 10% of sales by auction vs 90% via other sales processes? That's probably what you meant, but it's misleading, it's easy to understand that auction sales rates have dropped to 10% .

by Te Kooti | 11th Aug 22, 1:24pm 1660181085

That's not a clearance rate, it's a % of sales method. You sell at auctions in the good times and not in the bad times.

by Yvil | 11th Aug 22, 1:26pm 1660181165

Yep I just realised that as per my post above, it's easily misunderstood though.

by MMXXll | 11th Aug 22, 1:29pm 1660181391

Only if you have a Vested Interest !

by Te Kooti | 11th Aug 22, 1:37pm 1660181872

Butt out Rua Kore Rua Rua, this is the adults thread.

by Rob Reid | 11th Aug 22, 10:47pm 1660214861

My Dad told me that he used to regularly buy cars at auction. If bidding was slow the auctioneers used to fake bids coming from behind him to try to get him to bid up. So he would position his best mate near the auctioneer where he could see behind Dad and to the side, and his mate would give him a wave when the fake bidding started. Afterwards (when the car didn't sell) Dad would see if he could do a deal (which he often did)

Just thought I'd pass this on in case it gets to that stage at housing auctions (I won't be there but knock yourselves out).

by wrightoff | 12th Aug 22, 1:11pm 1660266710

That's called a vendor bid and there are laws around it including the auctionner having to disclose this.

Vendor bids may be made when all three of the following conditions are met:

The property at auction has a reserve price.
The reserve price has not been reached.
The bid is clearly identified by the auctioneer as a vendor bid.

Source: https://www.rea.govt.nz/real-estate-professionals/the-sales-process-and…