Fewer properties on offer but more selling under the hammer at Barfoot & Thompson's latest auctions

Property / news

Sales rate bounces up to 29% overall at Barfoot & Thompson's latest auctions

9th Dec 22, 4:01pm by Greg Ninness

The number of properties being auctioned by Auckland's largest real estate agency continues to decline as the market heads towards the summer break, but there was a sharp improvement in the auction sales rate last week.

Barfoot & Thompson offered 115 properties at their auctions last week (3-9 December) compared to 127 the previous week.

But that was overshadowed by an increase in the sales rate, with 33 properties selling under the hammer at last week's auctions, pushing the overall sales rate up to 29%.

That followed a surprisingly sharp slump in auction sales the previous week, when just 11 of the 127 properties on offer sold undre the hammer, giving an overall sales rate of just 9%.

The latest figures suggest the previous week's poor sales result was a one-off, with the sales rate now returning to its recent average of about a quarter or so of the auctioned properties selling under the hammer.

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

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57 Comments

by tothepoint | 10th Dec 22, 6:07am 1670605665

Some pre-Christmas joy!

TTP

by taimaiakka0 | 10th Dec 22, 6:18am 1670606312

Market from 10% to 20% down from peak has now entered fall between 15% to 25% in Auckland as many vendors realizing that 2023 could be worse are selling at be at price available.

Next year worst hit in Manuakau could be flat Bush area where construction activity is at peak as Mangere Manurewa, Papakura, Panmure and near around has already taken a hit.

Next year could also be extremely bad for all those new builders who have constructed Match box houses and have not yet been sold, unless have deep pockets.

Another group to be hit hard will be mum and dad bank, who used their existing equity as not only their existing family house value has and will fall but also of the house bought by using the equity of family house - double whammy as could have tolerated the fall in equity of family house but ......

by tothepoint | 10th Dec 22, 8:12am 1670613122

Oh dear, that sounds terrible. 👺 All doom and gloom. 🤨

TTP

by Black and White | 10th Dec 22, 6:38am 1670607533

Welcome to reality TTP

You can only spin BS for so long before its time is up.

This ain't going to be pretty

by tothepoint | 10th Dec 22, 8:37am 1670614653

Do you reckon you could make it sound even worse, Black and White, for the sake of those here who thrive on fantasies of Armageddon? 🥵

TTP

by Black and White | 10th Dec 22, 10:22am 1670620933

Yes

Since the GFC

10 years of money laundering by the blue team.

The red team printing money.

2023 reality having to spend made money.

On a very positive note this is going to be fantastic for young people and most old people like me he care are all for it.

You only need one home to put your head down in

by Pa1nter | 10th Dec 22, 9:02am 1670616178

Was this post that great it needed modifying 4-5 times, only to change the emojis each time?

by Retired-Poppy | 10th Dec 22, 9:01am 1670616099

by Pa1nter | 2nd Dec 22, 11:14am

"Bugger me with a fish fork, do we really need to talk about housing in every thread? This article isn't about housing at all"

Is this article about emoji's? 😂🤕🤔🤡🥱

Hypocrite.

by Pa1nter | 10th Dec 22, 9:04am 1670616240

Jeez you sat on that for long enough.

How'd you get on with those IP addresses.

by Retired-Poppy | 10th Dec 22, 9:05am 1670616310

Nope, it wasn't hard to find. You copied it from another commentor. Hardly original now is it?

Lets leave it there shall we?

by Pa1nter | 10th Dec 22, 9:15am 1670616957

Ok mate start fights then decide when they're finished.

Great chat as always poppy.

by HW2 | 10th Dec 22, 3:08pm 1670638139

Well done pa1nter

by tomjones_04 | 10th Dec 22, 6:52am 1670608377

TTP… house near me on the market currently. Bought 2 years ago for 2.25m. Been on the market for a couple of months, owner relocating overseas according to the blurb. No offers even close to 2 million! This is the reality. They are going to take over a quarter of a million dollar bath and by all accounts it’s a family that’s over stretched themselves by probably listening to people like you. I’d be very careful with your doom goblin comments as this is a real world example of what’s going to become a regular narrative. Sorry to have a dig because I know you are better than that, some of your comments are excellent, but the doom and gloom is here….seeing mate, first hand, so let’s acknowledge it.

by tothepoint | 10th Dec 22, 8:10am 1670613051

......some of your comments are excellent...... [tom jones]

Thanks for your kind comment, Tom Jones. I like your positive spirit...... 😁

Must say, I've always loved your music/singing - especially The Green, Green Grass of Home (from 1966). ✅ 👍

TTP

by tomjones_04 | 10th Dec 22, 4:50pm 1670644216

TTP.. thank you sir. Welsh parents

by taimaiakka0 | 10th Dec 22, 7:06am 1670609212

It is not all doom and gloom but reading the market and good time for actual investors to be ready be it house or stock.

by kpnuts | 10th Dec 22, 7:25am 1670610326

and that sums up the whole problem --- its houses a basic human need and right -- it should not be a commodity for rich people to get richer

by Pa1nter | 10th Dec 22, 7:51am 1670611904

The foundation of a market economy is the commodification of human needs. Hydration, sex, housing, you name it. Housings the one that gets your attention, because $4 for a Pump bottle seems a deal.

Housing is just a smaller part of a wider issue.

by taimaiakka0 | 10th Dec 22, 8:05am 1670612720

Agree

by Dgm | 10th Dec 22, 7:27am 1670610437

Happy 2023, house buyers, (not speculators)

by DTRH | 10th Dec 22, 8:13am 1670613206

The people buying property this Christmas must be aware that prices are on a downward path, wait for a few years that 20% deposit could upgrade to a 40% deposit by next Christmas ho ho. In some place up and down New Zealand house price’s are falling 20k a month if you purchased last Christmas 15% to 20% drops have already be seen.

by tothepoint | 10th Dec 22, 12:39pm 1670629182

Houses prices have reduced at a much slower rate through 2022 than they increased through 2021 (and 2020).

It's been a "Clayton's Correction" or, in other words, it's packed much less punch than many here (and elsewhere) had foreseen. I guess they overlooked the tight labour market - which shows no signs of weakening.

My hunch is that those who buy in 2023 will buy well. If you buy for the longer term, then almost certainly you'll do well.

TTP

by bw | 10th Dec 22, 8:44am 1670615049

Time changes a lot of things, as you point out. The biggest driver we have chosen to ignore? Demographics. The Ageing Property Owner Cohort who will be looking to cash-in their accumulations/downsize etc to live out a happy end of life.

It's been coming since 2011, when the first hit 65, and we are now about midterm. From here, the sell-up of property/assets by those who own them, to those who can't afford them, speeds up.

Just as those born after 1946 were able to progressively, and then aggressively, buy assets, so those same holders will have to pass them on - one way or another.

(NB: In most developed countries, we haven't even replaced ourselves with enough new buyers. We've been in Demographic Decline - a low/negative real population growth - for decades now. That's the double whammy of too many sellers now, and too few buyers. And no. Importing people isn't the answer. It's also part of what got us here)

by Pa1nter | 10th Dec 22, 8:46am 1670615182

Importing people is part of what will negate your theory about boomers cashing out and there being no buyers.

You don't have to like the answers to identify them.

by bw | 10th Dec 22, 9:02am 1670616136

That last lot of imported people? They are now part of the ageing cohort. That's part of the ongoing and accelerating reality - we all get old, no matter where we come from.

And as for today's migrants? They aren't arriving to a market of $50k houses; 3 time household income, or $250k houses or $500k houses. They are arriving to $1,000,000; +7 times income houses, and if their predecessors could afford $50k, today's arrivals can't afford $1m - that's a generalisation of course. There are always exceptions.

But in essence, 'more people', is never the answer to a Consumer Driven economy (ours) - only to a Production Based one. You know, the one we don't have now, but used to have ~40 years ago.

by Pa1nter | 10th Dec 22, 9:09am 1670616578

The first migrants got to come when land was free. As the place has developed the price at the ticket stand has gone up.

As no government has effectively resolved the aging population issue, it'd be a fair assumption ours will continue trying to avoid it, using more people.

by bw | 10th Dec 22, 9:19am 1670617165

An OCR at "15%" might put paid to that.

Have a good look about you. Do you see what you saw 5 years ago, let alone 10?

Neither does the RBNZ, and they have set about changing New Zealand to be ready for a different future.

We can all ignore that if we chose. But as many countries as well as ours know, 'we can't keep going as we are'. The end result is written in history, and if you laugh at 15%, then so have many other economies before ours before reality hit and 15% became a fond dream, compared to what then happened.

by Pa1nter | 10th Dec 22, 9:17am 1670617022

A terminal one?

Probably. We would find out some interesting things about our economic system.

by Zachary Smith | 10th Dec 22, 10:12am 1670620370

BW seems to have become a super doomer. I don't read their comments anymore as they are all the same. On Stuff threads as well, the same story...OCR to the moon!

by HW2 | 10th Dec 22, 2:03pm 1670634209

Ocr to the moon...

And houses to oblivion 😦 isn't that how it works

by Retired-Poppy | 10th Dec 22, 9:18am 1670617100

"The first migrants got to come when land was free"

Are current land prices attracting them now?

Bargains galore (sarc)

by Pa1nter | 10th Dec 22, 9:20am 1670617209

I don't think real estate prices was their primary motivation.

by Retired-Poppy | 10th Dec 22, 10:00am 1670619602

So (you don't think) the cost of real estate is a deterrent now?

Brave call....

Young skilled migrants will more likely seek out affordable housing and globally competitive wages when deciding to move here - (more so the latter)

Australia ✈️✔️

edit

by Pa1nter | 10th Dec 22, 10:03am 1670619822

It'll be a deterrent for some.

Billions of people though.

by Zachary Smith | 10th Dec 22, 10:31am 1670621474

Immigration will likely be ramped up. We are all accustomed to it now even to the point where most of us feel outrage at the immigration office for messing people about like what happened to the Hungarian folk in Otaki.

Family in shock after residency visa application rejected

by HW2 | 10th Dec 22, 1:41pm 1670632879

Good news for the Hungarians, they've just been granted their visas. Political move

Hungarian family given 42 days to leave the country can now stay | Stuff.co.nz

https://i.stuff.co.nz/national/130715998/hungarian-family-given-42-days…

by DMC45 | 10th Dec 22, 3:40pm 1670640002

Pa1inter, You don't think early European settlers ,(and Polynesian migrants before them) were strongly motivated by cheap (and earlier free) land?

That's exactly what motivated them.

by Pa1nter | 10th Dec 22, 4:25pm 1670642737

Usually they were escaping something else, rather than running to something in specific.

by IT GUY | 10th Dec 22, 8:52am 1670615527

I know a few oldies who planned to go into rest homes, but as they are not getting Nov21 money for their property have changed their plans. Some are on large 5H small rural in their 80's and wanting 10-15% over CV...... they are one health event away from having to sell.

by j reacher | 10th Dec 22, 11:05am 1670623503

Tell them they are dreamin.

by HW2 | 10th Dec 22, 12:50pm 1670629855

Tell them, subdivide and double.

by DTRH | 10th Dec 22, 8:50am 1670615456

Next Christmas 2023 you will be picking up property 15 to 20% less than today and if world downturn hits us badly these falls could be considerably worse.

by John2 | 11th Dec 22, 5:41pm 1670733683

It could be all over by then.

by IT GUY | 10th Dec 22, 8:59am 1670615951

Good for you for having a hunch TTP. I suspect a lot of hunchy people are regretting buying in 21. I have a hunch that I will get Ford Ranger or a Toyota HiLux at a good price in 2023, and I will have a lot of choice near the Tongariro river in Turangi to get a fishing retreat at greatly reduced price.

by tothepoint | 10th Dec 22, 1:10pm 1670631038

Sounds a bit fishy to me, IT GUY.

TTP

by IT GUY | 10th Dec 22, 7:30pm 1670653805

Will you take another $500 ?

by HW2 | 10th Dec 22, 7:58pm 1670655529

If the wife's a big spender you might get a cheap tesla

by Zen20 | 10th Dec 22, 9:45am 1670618715

Well your sweeping catchment of predictors left out such heavy hitters as Ashley C, Tony A and the Big Four banks ... oh and the Hosk for what it's worth

by Caughtinthemiddle | 10th Dec 22, 9:05am 1670616314

A week away from the HPI data. I’m guessing that it will show another drop. Remember folks, the auctions are not the only game in town.

by bw | 10th Dec 22, 9:28am 1670617733

Literally just having a chat with a property seeker, and it seems like general "PreApproval Limits" from banks may be a thing of the past.

It used to be "Let's have a look at your financials, and yes, we can lend you $X. Go out and find a property and let us know what to apply the mortgage to"

Now, it appears that they are saying "Let's have a look at your financials, and yes, we can lend you $X against this particular property you've already signed a Sale Agreement subject to Finance, you want us to apply a mortgage to"

It might seem like a small difference, but it sure narrows the target choice for those still looking to buy into today's market.

by Nifty1 | 10th Dec 22, 1:36pm 1670632586

Pretty big assumption on bank preapprovals just based off one property seeker...

No details provided on this property seeker either... how much deposit do they have, how many banks have they tried, what kind of properties are the looking to buy etc etc.

by SND | 10th Dec 22, 10:11am 1670620319

Spot on! That matches exactly my experience (looking to buy).

by Nifty1 | 10th Dec 22, 10:13am 1670620425

How many banks have you tried SND...do you have 20% deposit?

by HW2 | 10th Dec 22, 1:35pm 1670632546

Not my recent experience bw, careful not to extrapolate.

by nguturoa | 10th Dec 22, 10:45am 1670622357

Ohh well, it's NZ. What can be expected.

by HW2 | 10th Dec 22, 8:03pm 1670655826

The house affordability issue is not just restricted to nz. I know of 40yo professional couples in England still renting. They may as well come over here and rent

by Pa1nter | 10th Dec 22, 9:18pm 1670660299

Friends are moving back to the UK to be with aging family.

They're facing lower incomes and costlier and crappier housing.