Last minute flurry of activity in residential auction rooms

Property / news

Reasonably steady auction activity before the housing market calls it quits for 2022

17th Dec 22, 6:00am by Greg Ninness

Auction rooms have maintained a steady pace in the final weeks before the market winds up for the year, with interest.co.nz monitoring the auctions of 315 residential properties around the country in the week of 10-16 December.

That was well up on the 251 auctions monitored the previous week, although the increase wasn't entirely due to an increase in activity.

Interest.co.nz has made some changes to the way we monitor and record auctions and this has significantly improved our coverage of auction activity around the country.

If the effects of those changes were removed, allowing an apples-with-apples comparison to be made, the latest results would have covered just 265 properties, only slightly up on the 251 properties monitored the previous week.

The overall sales rate at the latest auctions was 28%, and that figure would have been the same even if the latest changes had not been made.

That was down just a tad on 30% the previous week.

Considering that auctioneers throughout New Zealand will be calling "last drinks" in the next few days, the latest results are a surprisingly resilient finish to the year.

The table below shows the latest district-by-district results around the country.

This is interest.co.nz's final residential auction report for 2022.

The reports will resume in 2023 once auction numbers increase to a level that provides a meaningful indication of market activity, most likely in early February.

Merry Christmas to all of our readers and wishing you all the best for the New Year.

The comment stream on this article is now closed.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

72 Comments

by Nifty1 | 17th Dec 22, 7:10am 1671214253

Great to see more RE agencies in the auction results, will be interesting seeing how well other agencies are performing and if it impacts overall sales results.

by tomjones_04 | 17th Dec 22, 7:25am 1671215116

Why do people take their properties to auction? 23% chance of success these days!? Just put a price on it and thrash out a deal. It’s the good old greed mentality that on the day 2 bidders are going to get emotionally involved and we’ll be RICH 🤑 money money money

by Pa1nter | 17th Dec 22, 7:51am 1671216681

- wishfully ambitious of a rouge sales price

- agent cons them into it

- the prospect of an unconditional, short sales process is appealing

by Yvil | 17th Dec 22, 11:48am 1671230891

"rogue"? sale price

by Dgm | 18th Dec 22, 8:16am 1671304579

Is that term new to you?

by HW2 | 17th Dec 22, 8:19am 1671218397

If there were many people who actually agree with your anti-money sentiment, Lotto and the lure of the Powerball would not exist. Whether good or bad, its there

by tomjones_04 | 17th Dec 22, 8:28am 1671218883

You are missing the point, but that’s not surprising. The base of my message is suggesting it’s time for vendors to pivot as auctions are a low result method these days. I’m not anti money… I’m pro regulation where the governing body sets regulation for a fair playing field. Ie.. DTI etc.

it involves a level of empathy and selflessness and I’m sure we can all agree that’s not you

by HW2 | 17th Dec 22, 9:39am 1671223188

Imitation is the greatest form of flattery 👍

And let's not forget regulation and the highly profitable businesses and highly paid employees that surround it. Those people become rather wealthy and buy expensive homes, only few can afford

by Pa1nter | 17th Dec 22, 8:44am 1671219855

To be fair, this is a financial website, and most of the claims of greed are usually off the back of other mindless motivations like envy and wrath.

Not that I'm a Christian, but in this day and age there's an awful lot of empty virtue signalling out there.

If you're trying to sell something, usually it's in your interest to seek the best price.

Likewise if you're wanting to be remunerated, it's in your own interests to value your time as highly as possible

by HouseMouse | 17th Dec 22, 8:55am 1671220509

Being financially savvy and financially ‘comfortable’ need not conflict with values such as selflessness, empathy and concern for the greater good.

by Pa1nter | 17th Dec 22, 9:13am 1671221594

They will do to a certain extent, otherwise any surplus wouldn't be retained, if they're to be more than mere 'values'.

There's morality as preached and morality as materialised.

by tomjones_04 | 17th Dec 22, 9:08am 1671221329

Hi Painter. Thanks for your opinion. I predict a future of tighter regulation and control moving forward. It’s too risky to the wider economy to have all that money locked into non productive assets. Change is ahead. As far as the envy comment… it’s as predictable as my greed comment so I guess we are as bad as one another. 😅

by Pa1nter | 17th Dec 22, 9:16am 1671221793

Change is always ahead.

I dont think those currently feeling shut out are going to be overly impressed with the results though. The average person is always going to be set up to lose, because they have no leverage.

Hence with all the cries of productivity investment, your best bet is to take that on yourself, because anyone else doing it is only going to feed you crumbs.

by Yvil | 17th Dec 22, 9:58am 1671224334

Well Tom, you're actually making two separate points in your original post:

1) being that it's a poor time time to sell by auction, which most of us agree

2) you also make the point that people are too greedy, wanting to get as much money as possible.

It's the second point that HW2 is debating and quite rightly so IMO, as Interest is a website about Finance, in other words, as you put it yourself, about money, money, money. If you don't like money, don't read Interest.

by tomjones_04 | 17th Dec 22, 10:18am 1671225519

Yvil… you can always dob me in. How you and I make money is very different. Let’s not go there… you’ve been dug out on here plenty so let’s not make it a popularity contest. So if you don’t like it, I suggest you try another website.

by Yvil | 17th Dec 22, 11:12am 1671228761

Don't take it personally Tom and please don't get offended. It's a simple fact that "Interest" is a site about money, its motto is "helping you make financial decisions", it's not a site about morals and ethics and the comments section is certainly not about "a popularity contest".

by HW2 | 17th Dec 22, 11:39am 1671230367

How you and I make money is very different. Let’s not go there

So we shouldn't have had motels for homeless during a pandemic

You would find if more people were living on the streets your hospital would have been overrun with patients.

by tomjones_04 | 17th Dec 22, 11:51am 1671231108

Who rattled the spruikers cage this morning?

Running a hotel wouldn’t appeal to me regardless of how much money I was making off the government. I sell into the manufacturing sector as it’s what I enjoy doing at it pays the bills. Happy to share insights into my world, P&L, investment strategies, market movements. I’m sure you work hard Yvil, but please realise we all are different. HW2 is old and irrelevant. I’m happy to share and debate anything about the industry I’m in… but the hot topic on here usually is property.

by Pa1nter | 17th Dec 22, 12:07pm 1671232054

I guess it's just been made such a fundamental part of our culture. But it's only one part of an overall challenge everyone is now faced in their commercial lives.

There is definitely so much change that needs to be done to make housing more accessible to anyone with the desire to own one. The barrier to entry now has multiple layers of added cost and complexity involved. There are also competing interests at play.

These can be resolved, but it does seem like there is more energy being put into a culture war than an actual practical way to provide people with new efficient housing for little outlay.

by HW2 | 17th Dec 22, 12:47pm 1671234467

Running a hotel wouldn’t appeal to me regardless of how much money I was making off the government.

Its not ok to make money via the govt to house homeless people

Is it ok for specialists to make money off sick people

Who rattled the spruikers cage this morning

Just asking pertinent questions tommy boy. Cant you handle that

by tomjones_04 | 17th Dec 22, 1:10pm 1671235855

I like how you edited your comment to make it even nastier.

I have no passion for either HW2. Neither are my area. Buying rental properties is not my thing either, and that’s why I see things differently, no vested interest. My interest is being part of a community that makes cool stuff and sells it onto the rest of the country/world. The industry has invested heavily in future proofing itself and as long as we continue to train young people, we’ll be fine. You can continue to be an arthritic keyboard warrior, but leave the heavy lifting to us younger folk.

by HW2 | 17th Dec 22, 2:11pm 1671239475

Suddenly you do not have an opinion about the medical specialist making money off sick people. Total fake. Oh is that nasty, well then try practising what you preach.

by Zachary Smith | 17th Dec 22, 8:30am 1671219006

The auction is often just the first stage of marketing the property. If it fails to sell at auction the advertising is still all in place and the property can be marketed with a price or whatever.

The extra cost is only for the auctioneer which is about $1,000 I think.

by have no idea | 17th Dec 22, 12:27pm 1671233274

It's a good way to waste buyer's time and to generate more time investment rom them I think.

by HW2 | 17th Dec 22, 8:20am 1671218409

We may be looking at the trough right now, with better results next year. Econ growth already surprised on the upside for sept quarter and Dec qtr will be strong judging from the number of overseas arrivals in October and Nov

Online listings for Auckland rentals have fallen from over 5300 to under 4900 in recent weeks. There again that could just be due to the annual Christmas slowdown. Time will tell.

by dbbr | 17th Dec 22, 8:21am 1671218464

More likely 2025, depends on the pace of falls. It's Turkey Time.

by ex agent | 17th Dec 22, 8:31am 1671219067

How many people have taken their houses off the market after months of not getting the price they wanted. Those who actually got an offer might wish they had taken it when they put their house on the market in the future.

by HW2 | 17th Dec 22, 8:56am 1671220573

Logically then some of those vendors become 'accidental' landlords. As discussed above, there are fewer and fewer rentals available. Despite hundreds of rentals listings being poured into the market place everyday. The demand is there to soak them up and more.

by Nzdan | 17th Dec 22, 2:01pm 1671238885

I love accidental landlords, especially the ones that find out they cannot hack it.

by HouseMouse | 17th Dec 22, 8:57am 1671220625

Trough now? Maybe, but it could be a long running trough.

I don’t see any prospect of the market picking up until late 2023 at the absolute earliest, and even then likely to be a very slow pick up…

by HW2 | 17th Dec 22, 9:07am 1671221234

And you are sticking to that view, good for you. None of the recent news reports and market movements in immigration settings, exchange rate crosses, commodity prices including fuel, sept gdp, China's faster relaxation, US 2 and 10 year yields, the share rally since sept that you called a suckers rally will change that.

by HouseMouse | 17th Dec 22, 9:16am 1671221794

Nope no chance at all.

Other factors will easily dominate those - high and rising interest rates, stretched housing affordability, a worsening domestic economy, many skilled kiwis emigrating (you mention higher immigration but it’s likely many of those immigrants will not be in a position to buy property).

Let’s see where things stand in a year ey? I’ve made a note of your bullish position.

btw I have no vested interest at all in how the market performs.

I suspect given that you have what sounds like a significant property portfolio that you have a lot of vested interest.

And yep I maintain there has been a suckers rally in shares, and it’s turned down again in the past week.

by HW2 | 17th Dec 22, 9:36am 1671222967

No vested interest.

Want interest rates to increase, seeking 6 percent TD. Want stocks and bonds to fall, not planning to invest in stocks until late next year. Offspring who are renters, rents to reduce and house prices to fall. Thats before strongly Anti-landlord

by HouseMouse | 17th Dec 22, 9:35am 1671222904

No vested interest in whether house prices go down or not.

Sure, it could make it easier for my son if houses fell a lot further, but he’s only 24, and a few years away from buying anyway, and a high income earner so not that worried about him.

I am not sure why you raised TD etc when I am talking about the housing market. It’s pretty clear that the RBNZ will keep hiking the OCR regardless of the housing market.

by tothepoint | 17th Dec 22, 12:33pm 1671233637

With all due respect, HouseMouse, you omitted to consider the most critical factor of all…… the tight labour market.

TTP

by HW2 | 17th Dec 22, 1:11pm 1671235890

Nope no chance at all

With his head in the sand approach, Mr Market is likely to walk up and whopp his behind, good and hard

by HouseMouse | 17th Dec 22, 1:27pm 1671236821

Whatever.

by IT GUY | 17th Dec 22, 2:46pm 1671241596

Hartnett’s 10th and final trade for 2023 carries particular resonance for Australian investors: he recommends going long European banks as the European Union tries to stimulate the economy to wean itself off Russian energy, and going short banks in Canada, Sweden, Australia and New Zealand.

Why? Hartnett says these countries are facing “real estate market busts” and sees the banks as being exposed.

I am telling you deep out of money puts on Aussie banks pay big back end of 23. I would not hedge with the European banks. Just get short aussie banks.

by HW2 | 17th Dec 22, 5:04pm 1671249855

You will have to explain that jargon for HM, and are you sure you're not on the other side ? Pump and dump ?

by HouseMouse | 17th Dec 22, 7:32pm 1671258722

Immature and boring. Again.

by HW2 | 17th Dec 22, 8:54pm 1671263693

Maybe grow a pair. You have said much worse about me and then whine about the slightest return.

by Albert2020 | 18th Dec 22, 6:48am 1671299339

Employment is a lagging indicator, the RNBZ even publicly stated they are engineering a recession where employment will rise. Typically that never ends in a soft landing where there’s more often an overshoot in unemployment.

by Caughtinthemiddle | 17th Dec 22, 1:24pm 1671236644

You’re joking right? The good economic data you cite is the very same data that will make Orr reach for 75bps not 50 come February.

How do you see that impacting a market already on its knees?

by HW2 | 17th Dec 22, 4:51pm 1671249061

"The good economic data you cite is the very same data that will make Orr reach for 75bps not 50 come February. "

Yep that could be right, and he has the shut-down to consider his move. You can't tell me that the sept gdp was a surprise to Adrian. And bearing in mind that 4th qtr data is not released until March there will be no reason to push up in Feb. He will have indications from the US Fed who also come back in February.

As far as inflation is concerned, he wants to see the pressure coming off the wage spiral. The new immigration settings will definitely help there. And lower commodities, food and fuel, and better supply from China will put a lid or downdraught on general prices.

I dont see interest rates rising indefinitely but who can say. Its like picking when the Harry and Megain sorties will end.

by nguturoa | 17th Dec 22, 9:26am 1671222404

Are the prices paid on auctions reasonable or we as a country are still drowning ourselves in mortgage debt?

by Zen20 | 17th Dec 22, 9:35am 1671222932

If you are in the enviable position to have limitless lucre and are happy to pay whatever it takes then any price is reasonable. However for the majority of buyers, you will be overpaying for your ladder step.

by Blackdog | 17th Dec 22, 10:00am 1671224403

if you"win" the auction you have the satisfaction of knowing that you paid more than anyone else was prepared to.

by nguturoa | 17th Dec 22, 10:26am 1671225975

Yeah agree, we all are satisfied when we win.

In earlier times there were Dog fights, cock fights etc.., their handlers were satisfied with the wins.

Just imagine who is fighting and who is getting satisfied with the win.

So someone is making us fight and we are fighting. Human intelligence has gone backwards rather than evolving into smarter beings.

by IT GUY | 17th Dec 22, 1:25pm 1671236741

Play Silly Games, Win Stupid Prizes

by Wrong John | 17th Dec 22, 1:06pm 1671235566

The markets across the board, are hard to pick just now. Everything comes in a multitude of different shades, it's hard to know where I am, let alone where everyone else is.

I'm reasonably pleased how the housing market has behaved this year. It's only right that we settle it down. My earlier pick of a 10-15% decline this year with a similar story again next year still looks on. That would be enough IMO. That would take out all the fairy dust (looking at you RBNZ) on the way up (the so-called 40% increase) all the way back to where it started, generally speaking.

There will be some variations on this theme but as a general guess, this scenario could still play out.

I'm also picking we might ride out the worst of it in 2023 in the shadow of the Australian / South East Asian's relatively fortunate position in global affairs right now. The EU & the UK, Russia, Africa & the Middle East are all wearing it in some form or another, as we speak. Even the Aussies are raising their voices (?) over their East Coast gas prices, which we are somewhat removed from, thank goodness.

Sometimes it pays to be grateful for what we've got. Simple as that.

by IT GUY | 17th Dec 22, 2:48pm 1671241731

The market was overheated going into covid, so the pre covid high water mark is no marker of long term intrinsic value of a yield based asset for investors.

Much to the angst of spruikers who helped their children into the market at the VERY tops.....

Long term investment property in NZ is going to revert to the mean on a yield basis. It's impossible to have an endless supply of bigger fools, willing to overpay for investment properties.

We are down to about 4 active Spruiker accounts on interest.co.nz now, some seem to post very closely together, like they are someone using two different accounts. They must be facing a difficult negitive equity family xmas.

by ex agent | 17th Dec 22, 4:34pm 1671248057

Yes there will a few children who think their parents are not so clever after all. They listened to mum and dad continually say you can never miss out when you buy property. Now they have lost a lot of equity, are facing a huge increase in living expenses including the rent/interest they pay the Bank and they are not sleeping so well. Next year is going to be even worse especially when some of them lose their jobs. Mum and dad will have to support them financially. They will love doing that!

by Pa1nter | 17th Dec 22, 5:06pm 1671249994

Amazing how many people confuse the idea "owning a home is usually financially wise" with "it's 100% risk free".

It's usually going to be a stretch. You want to make sure you don't get yourself in a situation that lacks much flexibility.

by HW2 | 17th Dec 22, 5:10pm 1671250235

Painter, young adults can be all over the place with a lack of direction after they suddenly have freedom and money. Its been great watching the kids mature into sensible adults but having a home they can call their own has helped. They will be ten years ahead of their peers

by ex agent | 17th Dec 22, 5:14pm 1671250487

If I recall you helped them like I have helped my own. Not all kids are in that situation. Some will now lose their jobs and homes as the recessions bites New Zealand. That will be sad to watch.

by HW2 | 17th Dec 22, 5:28pm 1671251327

Good for you ex agent. I bet your kids appreciated it

by HW2 | 17th Dec 22, 5:00pm 1671249610

There were 8000 fhb in the last two months who beg to disagree.

ITG will you be a winner or a whiner. There has been many like you on interest.co, one of whom turned up again this morning. All who think they know better but end up unhappy sour-pusses

by IT GUY | 17th Dec 22, 6:16pm 1671254207

BULLSHITE HW2 you are Lying.

From REINZ data

In November 5,525 houses sold across all of NZ

In October 4,892 houses sold across all of NZ

by HW2 | 17th Dec 22, 5:00pm

There were 8000 fhb in the last two months who beg to disagree.

I hope no one takes your misrepresentations as fact.

You are making things up as you go along!

by HW2 | 17th Dec 22, 6:15pm 1671254107

So 10 thousand new owners. You are reinforcing the reasoning right now

by IT GUY | 17th Dec 22, 6:19pm 1671254365

No I am pointing out your misrepresentation (Lies) pants on fire...

by HW2 | 17th Dec 22, 6:15pm 1671254107

So 10 thousand new owners. You are reinforcing the reasoning right now

by Nzdan | 17th Dec 22, 6:34pm 1671255275

Yeah there were actually 6600 FHB in the last 2 months according to RBNZ C31. So off by 33%.

by HW2 | 17th Dec 22, 8:12pm 1671261164

👍👍

by HouseMouse | 17th Dec 22, 7:33pm 1671258817

The lack of action on this clown by the editorial team is a great example of why I have a big problem with editorial policy on this website.

by IT GUY | 17th Dec 22, 7:41pm 1671259290

Noun

assclown (plural assclowns)

(Canada, US, slang, vulgar) A jerk; a buffoon; a person who is inept or ill-behaved to the point of being found laughable by others.

by HW2 | 17th Dec 22, 8:16pm 1671261390

You have successfully avoided the question, winner or whiner

by HW2 | 17th Dec 22, 8:04pm 1671260685

You'd love to get rid of me. I am here to keep you honest and provide a different point of view... is this a forum still or an echo chamber?

by Amokk | 17th Dec 22, 8:56pm 1671263812

You are just a sad old Boomer troll - you have been since you were houseworks and now incarnated as HW2 you are no different. Like other spruiking trolls you to will disappear as the housing Ponzi falls.

Look after yourself old man and maybe have some fun in life instead of trolling here all day.

by tothepoint | 17th Dec 22, 9:02pm 1671264165

Sorry, Amokk, but there’s no crash in sight.

TTP

by Pa1nter | 17th Dec 22, 10:31pm 1671269476

Times going to tell whether we'll just see covid asset gains disappear, or it's as some are predicting and it's all going to near zero.

Probably somewhere in between for a while.

by malamah | 18th Dec 22, 10:40am 1671313217

No *cash* in sight. FTFY

by ex agent | 17th Dec 22, 9:03pm 1671264222

Yes this site has been ruined by a few people making comments on it.

by HW2 | 18th Dec 22, 6:27am 1671298047

That does not make any sense Amokk, how can someone reincarnate but also just disappear virtually in the same breath? And while other people have their own pastimes, I enjoy coming to the forum and contributing to the conversations.

So what makes you think I am old, and why is it a problem. I can think of someone here who's getting old himself yet only a couple years ago just bought his first home. Or imagine saying to your grannie "you are a sad old boomer... look after yourself old woman". She would probably give you a deserved good hard slap.