Barfoot & Thompson had slightly fewer properties on offer at their latest auctions but there was an improvement in the sales rate.
The agency offered 88 residential properties by auction in the week of 8-14 October, down from 93 the previous week.
Of the 88 properties on offer at the latest auctions, 34 sold under the hammer, giving an overall sales rate of 39%, a significant improvement from 26% the previous week.
While last week's auction numbers may have been affected by the fact it was the second week of the school holidays, auction activity generally remains at a low level for the time of year, reflecting the current softness of the residential property market.
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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78 Comments
REINZ report
Sales down by 10.9% y on y.
Recent ad in South Auckland.
" $130,000 discount, this week only $750,000, cash..."
Some claim to hear the distant roar of the bulls……
TTP
That's from the meatworks where they are being turned into Pam's hamburger patties.
All i hear is the constant whine of bulls ****ing
Tim's confusing the sound of bulls with Tinnitus.
... and despite those screaming victims of Property Brokers, he refuses to listen. 😭
He can hear bulls because he's permanently in his own echo chamber.
Bulls isn’t far from Palmy
A good way to understand the sentiment of the property market other than looking at the horrific HPI stats, is to listen to RE Agents radio advertisements and watch how their premises get smaller and smaller.
Property Brokers in Havelock North was the biggest by far. Then it moved down to a medium sized building. Now it has moved down again to a tiny little office.
Property Brokers has started a new radio campaign relentlessly advertising for new agents to join their team.
Property Brokers are advertising on the radio the market has gone up in prices over the last 3 months, the market bottomed out in May.
It's a concern when the new office is tiny and yet they are relentlessly campaigning for new agents .
Where are all the original agents going ? And Why ?
Maybe that crazy Prophet was correct about 7% Interest Rates This Year, Guaranteed ! And the agents now trust The Prophet more than the Price Fixer.
Imagine what would happen when the remaining Agents find out about 10% Interest Rates Next Year, Guaranteed ! That tiny little office will be selling tombstones.
They’re running from the bears, hence distant.
Possibly because they are being castrated
People are still buying even in this market.
One of our long term tenants gave notice as they have purchased their first home, bit of an emotional phone call as we shared the excitement, so very happy for them. Great timing for us to rent the house out at market rent too so win win.
As someone who actually owns a bull, I can tell you that while they do charge from time to time, and can get up quite the head of steam, they can also be redirected or brought to a halt (and even sent into rapid retreat) with just a few well-chosen words and a threat with a big enough stick. The words generally have to be loud, but the stick just has to be waved rather than applied with force.
1 and a half months into spring and the sales rate is still in the 30's..
MISERABLE!!!
Kaitaia is no longer a cheap hideaway. Recent asking prices of do-ups are close to that of Whangarei.
This months HPI data shows another consistent drop in property value. This is a significant up tick in Auckland auction sales but in the context of the HPI, at lower prices. This simply means more vendors are capitulating to market forces. That’s only going to put pressure on the remaining vendors to follow suit and may mark a turning point in behaviour. Possibly due to the OCR sentiment changing to higher for longer?
Studying Barfoot's auction sales results this week I didn't spot any extraordinarily cheap properties. I was surprised at how many sold at or near their RVs to be honest.
I keep looking for an example of a distressed sale so that I can comment about here but they are quite rare.
I went to see results in Manukau - Auckland and first one sold at 1.050 million with a CV of 1.325 Million.
13 Miami Street, Mangere East
It's not a great result for the vendor but still 20k more than they paid for it less than two years ago. In 2017 the RV was 610k. It's one of those large section properties that are somewhat overvalued in the current RVs. The improvement value, meaning the house, is only valued at 50k.
So not a great example of a distressed sale. Notable in that it shows prices returning to 2020 values.
Look for some more. It is something I am very interested in.
Factor a few costs of sale and call it even (excluding inflation). 12 months up 12 months down. TTP was suggesting the other day that prices are not falling as fast as they climbed. Another anecdote that some are.
12 more months of falls, flat for two years after that? Feels like the 1990s.
Yes probably a bit of a loss except they may have got to live in it or rent it out for two years which does have a value. It's certainly an interesting example. Prices returning to 2020... It does feel a bit like the 90s.
The 1990s when I paid just under 2x my gross salary for a 4 bedroom home. Didn't even need a mortgage, imagine that.
Then the 2000s came and the market all went haywire.
I was on $32K in 1990 and it didn't buy shit. The banks would only loan you 3x your income and it wouldn't buy a small dark apartment in Auckland's Nelson Street without a car park that was sold separately in the Wilson carpark next door street at the time. You must have been on good money and living in Invercargill.
Mid 90s. Yes it was good dough, 60k working on Hull Rd not far from you Carlos.
In 1990 I was at school, but my parents paid $166K for a tidy 4 bed double garage house on 900sqm in Howick, and struggled to sleep at night thinking about the $100K mortgage they had to take out because it was more than their combined annual income - they were both senior teachers. Within 3 years they'd managed to add another bedroom, ensuite and spa pool.
Eleven years later I paid $210K for my first house, a rundown 2 bed cottage on 400sqm down a shared driveway in Ngaio. That was 4.5 times my income, and I borrowed $200K.
90k in Waiuku, most Steel Mill workers were making over 70k. Now their income may be up a little, maybe 100k, but house is 900k.
Plus crates were under 15 bucks, a handle was less than 2 bucks.
Traffic to Auckland took 45 to 50 mins. Thought life was suppose to get better.
I have had a great life personally, my kids will to, but unlike some people it's not about me.
Relatives of mine bought their first home in Wellington for $125k in 1995-96. Their household income was slightly more than that. Two late-20s IT professionals. Far easier times for skilled young folk.
Maybe because you were looking in Nelson St?
My parents' 18mo 4 bedroom house in Clendon sold in 1990 for $80k. ~2.5x your 32k salary. Sadly they were left out-of-pocket, but there were options beyond the city centre.
Good point about the rent.
Am I missing something... the house is a sh* hole, the vendors have done nothing to it, the market is terrible, the locations not great and it still sold over 1 million...
It's auckland, everyone's fave city
Mangers, not the best suburb, however is a lot closer to auckland central than others.... Like Otara only better 🤣
and you can go down to the local park every night for a free all-night disco
Land, land, land.
Big site - 888 square metres
That's yuge: Trump
Thats lucky: Xi
Putin: hidey hole in nz
Dicktators dream
Location, Location ! 1Million dollars to live in Mangere....are folk so entranced by Auckland that they actually believe that their 1 Million is buying value. Take that money and head to Tauranga and you are sitting pretty in a peaceful orderly suburb... The sooner folk realise what they are throwing their hard earned wage into the better off all will be. Previously valued at 1.3 Million ... plenty of folk crying the sky is falling ,looking at that property it has a very long way to fall before planet earth is reached...my valuation $400k tops... borrowers need to up their game and demand value for the cost of credit , instead of playing stupid and biting the bullet . 13 Miami st....nowhereville
Mixed housing urban - maybe they are thinking of building ten three level units on the site like they have been doing in West Auckland.
There's a time and place to sell a property like this, now wasn't it...
Surely selling at RVs is cheap. Many RVs up in Auckland are a couple of years old and predate much of the frenzied pricing time?
RVs in Auckland set in June 2021. Selling at RV would generally be pretty good now. Most QV estimates are below current RV. My own house's estimate is 200k below current RV and I think that would be about right.
More sell at lower price will set the ball rolling, forcing more and more vendor to compete among themselves by dropping price to sell before the price falls further.
Fewer sellers and more buyers adds up to ↗️
Just another Spruiker compensating for ↘️
To think that housing market is changing direction - moving up or will move up can only be wishful thinking.
"will move up... wishful thinking" so in your opinion the house prices will Never move up? Ever again?
I will tell you what's wishful thinking Carinazi ... thinking that interest rates doubling means house prices halving. Dream on.
HW2, why won't it happen? Do you think that the current inflation in practically everything but houses is a myth? Do you think that the average folk are banking their increased wages?
If you're this out of touch, you risk becoming one of the many financial casualties of the coming downturn.
Did not say house price falling by 50% but to say that current downtrend is over is wishful thinking.
Never mentioned that will never move up. Economy cycle takes its own course and are unavoidable. All data and reports suggests that the probability of it getting worse before getting normal is very high.
Only suggesting that do not think that downturn has bottomed out as it is just the beginning for now.
Yes but you are secretly hoping for a complete collapse and house prices halving. Keep dreaming... wake up when you've missed out again.
.....and when you're openly hoping they won't yet in reality they could?
Another whining bull who will soon go the same way as the other 'but muh gains' snake oil salesman all wishing for constant gains - CWBW and P8 have room in their basement for you mate and a few paper towels for the tears you will be shedding soon enough. Meanwhile the non-narcissists will be celebrating the revert to some form of normalcy in this NZ housing market s**tshow.
Exactly! Houses are for living in, not speculating on. Greed caused this mess, fear will eventually reset things to a new normal (whatever that is)
HW2, Just reading the market, which suggests that worst is yet to come and is not only in housing market but overall. Despite high interest rate, overall spending has not dropped, the way it should be. It only suggest the amount of money that has been flooded in the system that has devalued the $ in real terms and will need some bold action tocome out of it but will central banks do - No, unless forced, which they will e eventually resulting in prolonged pain.
Remember the proverb " If wishes were horses, beggars would ride"
I can hear the echos of wailing ACROSS THE MOTU as tens of thousands of aspiring FHB miss out on getting financially wrecked.
I think your making a lot of assumptions here and on other posts. You realise that people discussing the property price crash may not be hoping for this, the just are not so blinded by their own wishes and they can handle reality. I have so much skin in the game, prices are down 20% where I am and id expect another 20%-30% from here. Flat for a decade or so then up we go. Hopefully we can still service everything, if so all good no drama. If we can’t, dam made some mistakes, also all good no drama.
Indeed, no need to be glum. That first 20% seemed frothy and the second 20% is a lot less dollar-wise than the first 20%. It's not like we were going to go on a mad spending spree with it anyway.
Spot on
That’s unfair.
He was clearly talking about the present, not the future.
And in terms of the present / near future the market certainly does not look like heading upwards.
In other words. It is only a matter of time. FHB Please take note what HouseMouse just said.
Don't get caught out when the market does move. And don't end up like squire buying a first home in his mid 40s, and now an empty nester. Yes it is a little bit mean to point that out, but it is probably why you should not listen to his skew-whiff advice.
Much easier and better to buy BC (before children)
For what it’s worth, I think the market will keep falling till mid - late 2023. It will then stabilise and start rising again, but only slowly.
There’s no rush and little chance of a boom market any time in the next 2 years.
My worthless opinion is the same. Down then flat. Could be 5 years till a rise of any note.
I've got nothing to go on my experience (history does not necessarily repeat of course), observation (which is self selected and no doubt will be proven as loaded with bias on reflection in the future) and reading on mostly this site (full of as much opinion as I'm expressing now with a smidge of science and maths thrown in here and there).
I'm not even gonna screen shot this to see if in 5 years I'm applying a selective memory when I throw out my guesses or wisdom then.
The recklessness is just bubbling up today.
Exactly this I'm going to put this now. IMWHO with a couple of beers thrown in, not to mention the odd bbq anecdote.
In late 2019 housemouse known as Fritz was repeatedly saying the prices were tumbling and not to buy. Guess what, he was down-spruiking while looking to buy a house for himself. Thats why I dont trust him
More to the point, should anyone trust a Landlord who makes stuff up?
Not according the B&T auctioneer on the news the other night. He reckoned it's a good time to buy before more properties come on the market which will mean more buyers? And why wait until next year when there's so much uncertainty around. (Because we all know that more supply equals higher prices and higher interest rates mean higher prices).
I guess he will be canceled by Cindy's disinformation police?
Yip. A global downturn, oversupply of properties, falling $kiwi, struggling businesses, high inflation, overemployment, the reserve banks doing their damdest to raise the OCR and to force a slowdown. Government throwing cash at the problem coz its coming up to an election year.. img, banks, economists all.pointing to a slowdown, increase in geopolitics, wars dragging climate change policies delayed trump starting to speak up again, resource scarcity getting worse.
Of course.. it all points to a massive boom in property prices. Listen to the RE industry! Get in quick.
Alteratively.. be careful with cash and watch for investment opportunities in different places as the overleverage flounder as interest rates bleed them out and when as as the dust starts to settle.
Well presented properties in desirable locations still selling...
CV $1,125,000
Sold $1,257,000
https://harcourts.net/nz/office/browns-bay/listing/bw37676-25-weatherly…
It's struggle street for those who bought poorly without taking into account what future buyers want...especially in a slower market where people can be picky.
400k in four years for the vendor. That's pretty good.
It would be really good if no other properties did the same
Yes houses increasing in value by 2k a week while wages stay the same indicates something is awry.
Music has stopped, dance floor empty. Party's over buddy. Time you went home.
Time to head home and get some kip. There will be more parties in the future.
You conveniently missed the part about the "Mother of all Hangovers" has to happen first🥶
FHB's and folk looking at buying need to extract the value of the cost of credit in a market where the cost of credit is rising , they cannot afford to think the market will pick up and I will claw that back sooner or later. They will need the market to rise much more than the pump and dump merchants will tout. A 300k price drop might seem spectacular to a current buyer but with the current cost of credit rises it is peanuts....Dont fall for the buy now the markets bottomed out ploy...Demand value for your dollar because you are getting in at a much higher cost than the seemingly cheaper price reflects. Realise rising interest rates can destroy you.... understand there are other towns and cities that might have better growth prospects than the well treaded path...
👍
HW2 you fail to read the room, US CPI results came out this week which rose slightly above expectations despite the multiple rate hikes. another possible 75bp raise in Nov.
RBNZ is but a small fish in the ocean destined to be swept by the large currents
I think he’s quite exposed to a big fall away in house prices and is a little in denial.
On a receding tide, the last thing anyone wants to see is HW2 exposed. Such a sight cannot be unseen.
Especially old. Money can do something but not everything.
Wishful thinking, making it sound like the market is turning, get use to the new tune, the property market has crashed, and it will continue to do so, because of many factors, be prepared for much lower and affordable prices in the near future.
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