Auction activity is slowly improving as we head deeper into spring

Property / news

Auction sales are slowly improving with 41% selling under the hammer last week

4th Oct 22, 10:56am by Greg Ninness

There was almost no change in the number of properties auctioned last week after a jump in auction numbers the previous week.

Interest.co.nz monitored the auctions for 184 properties from around the country last week (24-30 September), almost unchanged from 185 the previous week, which was a step up from 133 the week before that.

Essentially the higher level of activity of the previous week was maintained last week.

The sales rate also edged higher last week with 75 properties selling under the hammer giving an overall sales rate of 41%, up from 36% the previous week and 33% the week before that.

The figures suggest a gradual improvement in auction activity which would be normal for the time of year.

However we are also at the start of the school holidays which could put a dampener on activity over the next couple of weeks if some vendors and agents hold back property auctions until after the holidays.

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

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46 Comments

by Yvil | 4th Oct 22, 11:04am 1664834672

So:

44 houses sold two weeks ago

66 houses sold last week

75 houses sold this week

by J.C. | 4th Oct 22, 12:06pm 1664838404

Might be a new career for you Yvil. You talked to Kantar?

by Dgm | 4th Oct 22, 2:21pm 1664846496

Are those numbers for 1 suburb? If so, that is great..

by 2 Tooth Bora | 4th Oct 22, 2:50pm 1664848257

These are ridiculously low numbers for the whole country. Particularly Auckland is still tanking...

Prices to fall much further before people can afford the current unrealistic prices.

Sky rocketing Interest rates and Inflation over the coming years will see to it; Including business failures and high unemployment (except for the low skilled/paid jobs) Looks like Covids going to make a come back before the year end too:)

by Yvil | 4th Oct 22, 3:14pm 1664849693

by Greg Ninness | 4th Oct 22, 12:37pm

We do not monitor every auction in the country every week, but monitor a representative sample of the same auctions/agencies each week so that it is consistent

by BigBen | 4th Oct 22, 11:17am 1664835452

There still seems to be a reasonable number of houses selling over CV in the areas I’m watching. The falls had to slow down at some point.

by J.C. | 4th Oct 22, 12:08pm 1664838520

There still seems to be a reasonable number of houses selling over CV in the areas I’m watching. The falls had to slow down at some point.

Depends what you see in the chicken bones. Imagine inside the meetings at B&T. Like a scene from Glengarry Glenn Ross.

by Tee | 4th Oct 22, 11:23am 1664835836

Developers in Whangarei are presenting their new builds. Saw a 2 bed, on a full section for $689,000.

by dbbr | 4th Oct 22, 11:26am 1664836013

Wellington looking great! 100%! Oh wait.

by Nzdan | 4th Oct 22, 11:45am 1664837109

I haven't been to the Interest.co Residential Auction Results page for a while. Loving the new layout.

by taimaiakka0 | 4th Oct 22, 11:55am 1664837707

Houses that are successful in Auction are going at good price as also many vendors are ready to meet the market.

Depending upon the interest and price, not hard to get sold sign.

Interest to see, how the market behaves next few weeks as will make or break.

by ex socialist | 4th Oct 22, 12:52pm 1664841150

The ones selling at auction for above the rateable value tend to be in very tidy condition. It is likely that the RV process is understated for these homes - given it is a 'desk-top' assessment process. such as this one selling for $1.77m against a RV of $1.67m

https://www.cooperandco.co.nz/listing/42615/MJ52324/51-Fairview-Avenue-…

The ones with a strong reason to take to auction always do well out of it.

However, looking at the more ones in more ordinary condition a 20% discount to RV is not uncommon.

by BigBen | 4th Oct 22, 1:19pm 1664842753

We visited this one. It’s down a ROW, has a major construction site next door and is partially plaster. I was expecting it to sell around CV, surprised it went well over.

by nguturoa | 4th Oct 22, 12:25pm 1664839550

Interestingly for the whole of wellington region only one property went to auction. Is this true?

by Greg Ninness | 4th Oct 22, 12:37pm 1664840254

Hi Nguturoa, we do not monitor every auction in the country every week, but monitor a representative sample of the same auctions/agencies each week so that it is consistent. However auctioning has never been a feature of the Wellington market where tenders have traditionally been used instead.

by Nellbell | 4th Oct 22, 1:26pm 1664843214

Yes mostly tenders, but what a terrible non transparent system that is that has caused the massive blowout of prices we have here. A friend of mine sold a property during the “bad” post lockdown period in 2020. A very modest, tiny property. It seemed to be way overpriced at $750,000. Five tenders came in, four at around $750,000 one at $900,000. This is how the huge price distortions have happened down in the Wellington region, pushing prices higher and higher through a totally closed system, that is often gamed by the agents. Once demand picked up even more in Wellington, then properties in the Hutt that used to be just a listed price, all went to tender or multibid as well. Exhausted buyers putting in higher and higher bids on the successive properties as they have missed with lower bids on previous houses. Tenders hit Wairarapa in late 2020 and are only just stopping. Agents still trying to have set date sales - taking no offers prior to date to try to creat a multibid situation. It is very sad. My brother, a valuer, gave me advice to never by a house in a multibid, hard to avoid then here.

by tothepoint | 4th Oct 22, 3:33pm 1664850825

My advice, simply, is to avoid agents.

As a vendor or purchaser, it's not too difficult. There are plenty of strategies that are lawful and work well.

You'll have little difficulty in deciding how to spend the extra money in your pocket from avoiding agents' hefty commissions. Plus, you'll avoid the stress of dealing with agents - who can be very slippery fish.

TTP

by Kiwi Tim | 4th Oct 22, 3:58pm 1664852286

Here he is, TTP ya slippery lil bugger.

by Nellbell | 4th Oct 22, 1:10pm 1664842223

No, I watched a Harcourts auction last week in Tawa ( online), that got passed in. Much just be a sample of RE companies that are monitored?

by Chairman Moa | 4th Oct 22, 12:46pm 1664840789

I fear the market is turning and slow, over-thinking buyers will miss out!

TTP

by Hastings | 4th Oct 22, 1:09pm 1664842185

God forbid that prospective buyers should think slowly or even at all for that matter. Of course there's going to be an uptick but there may well be a second leg down sometime next year when reality bites. Let's see what Adrian does tomorrow.

by Nzdan | 4th Oct 22, 2:01pm 1664845319

Popcorn is bad for your teeth, something about Hillman Hunters holding their value, and those who wait will regret it.

True Team Promise.

by Chairman Moa | 4th Oct 22, 2:12pm 1664845928

Only if you sugar coated them.. Otherwise they are a very healthy option.

Time To Postpone!

by tothepoint | 4th Oct 22, 3:38pm 1664851083

Hi Nzdan,

If you haven't owned a Hillman Hunter 1725cc, then you haven't lived.

TTP

by Chairman Moa | 4th Oct 22, 4:21pm 1664853713

Hillman is just Morris Marina with handbrake on the wrong side.. Give me Peugeot 504 anyday!

by Fluffybunny | 5th Oct 22, 10:17pm 1664961453

Did you just sign off above using TTP?

Please tell me you are not two accounts and having a conversation with yourself?

No wait... Dont tell me... just go edit the above post instead.

by tothepoint | 4th Oct 22, 3:32pm 1664850759

The housing market correction is nearly a year old - and still struggling to get traction......

It's a wimp - lacking turnips from the start.

TTP

by Happy_Medium | 4th Oct 22, 5:16pm 1664856990

I like ANZ’s description of it as a deflating bouncy castle. 🏰

by Wrong John | 4th Oct 22, 12:47pm 1664840847

Better below New Plymouth-Palmerston North than above it.

by Kate | 4th Oct 22, 12:53pm 1664841238

Bay of Plenty - 2 out of 11. Quite an outlier. Interesting.

by Greg Ninness | 4th Oct 22, 1:06pm 1664841996

BoP results have been weak for quite a while.

by Averageman | 4th Oct 22, 2:19pm 1664846384

The regions lag the main centers on the way up and the way down to quote TA the prop preacher. The retreat of Covid stupidity has just taken longer to manifest. Lets assume it will fall at least as much as Wellington and parts of Awkland have.

by Carlos67 | 4th Oct 22, 1:11pm 1664842312

Not sure to many are bothering with auction down here. When you consider there is currently 1,136 properties listed on TM, a sample size of 11 doesn't tell you much. Take a drive down here and it doesn't take long before a SOLD sticker appears on the "For sale" signs. Things started moving again down here about a month ago, my pick is that we have nearly hit the bottom of the market price wise.

by DTRH | 4th Oct 22, 2:01pm 1664845318

When interest rate and inflation stop climbing you will still be a long way from bottom, Carlos did you not read yesterday price’s are falling 10k a month, still need 10 x average wage couples income for a tiny 3 bedroom place in Auckland. Don’t see how we any way near bottom price wise.

by Carlos67 | 4th Oct 22, 5:45pm 1664858712

I predicted the biggest falls would happen in Auckland and Wellington and that has already played out. People have priced in another 100bps by Christmas, those that can still buy or upgrade are still doing so. Sales will pickup over summer and fortunately the election is just far enough away next year not to stuff it up. If you have a decent secure job its time to start looking.

by BigBen | 4th Oct 22, 6:18pm 1664860711

Still pretty high but it’s closer to 8x. The average first home buyers mortgage is 800k in Auckland.

by Kiwi Tim | 4th Oct 22, 4:04pm 1664852656

Interesting. What do you think suddenly changed? Did buyers get more money to borrow (even though interest rates on the up) or could it be that sellers adjusted there expectations? If the latter, then we can assume more price falls and us not at the bottom yet?

by HouseMouse | 4th Oct 22, 8:55pm 1664870115

Probably a combination. I am sure that some buyers have been holding off but are now looking to jump in, thinking that prices (especially in Auckland) may not fall that much more.

While a proportion of sellers have likely become more realistic.

by Averageman | 4th Oct 22, 2:33pm 1664847218

OCR up again tomorrow, and many comments on a couple of banks in Europe having liquidity wobbles. If one of those actually falls over, then hold onto your hat. The GFC will be back with with a vengeance.

What were interest rates again last GFC...?

by taimaiakka0 | 4th Oct 22, 2:39pm 1664847592

Do not worry. Spring is here and everything will be fine and not to worry about interest rate or what happens in the world as Housing market is about to change - move upward.

by tothepoint | 4th Oct 22, 3:35pm 1664850935

You might be correct, taimaiakka, though I suspect you're a bit premature. Nonetheless, optimism is a virtue.

At the first signs of housing market recovery, the DGM will be washed away in a tsunami of fear.

TTP

by taimaiakka0 | 4th Oct 22, 4:07pm 1664852846

This is not optimism but hope for many who bought recently. One has to show some positivity even when one visit a terminal patient.

by Averageman | 4th Oct 22, 4:06pm 1664852780

Winter is Coming for these banks...

by Crazy Horse | 4th Oct 22, 4:21pm 1664853701

Always amazes me no matter what the banks do with interest rates, they still have a profit margin at any "COST" to all and sundry.

by Carinaz | 4th Oct 22, 4:11pm 1664853119

No Smoke Without Fire.

by Crazy Horse | 4th Oct 22, 3:48pm 1664851713

Just keeping an eye on the property market, as a relative of mine sold a DGZ unit in AKL, late 2015 and took the money and ran !! Then went back overseas, where they have been building a pile of cash to buy again (not in AKL as he now doesn't want to live here) ....He was very "concerned" when he sold, he would miss out on further gains - was not to be.

So now he will be a cash buyer when he arrives back in NZ very soon .....and for those salivating at selling him something anywhere near 2021 prices, you can forget it - as he never "bought in" to the property HYPE of 2012 to covid.