There was a significant increase in activity at the latest auctions, with interest.co.nz monitoring 187 residential property auctions around the country in the week of 4-10 February, up from 109 the previous week.
There was also a significant improvement in the auction sales rate, with sales achieved on 67 of the properties auctioned.
That gave an overall auction sales rate of 36%, compared to 25% the previous week.
Of the 66 properties that sold, interest.co.nz was able to match 64 of them with their rating valuations, with 26 (41%) selling for amounts that were above or equal to their rating valuations, and 38 (59%) selling for less than their rating valuations.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including their rating valuations and the selling prices of those that sold, are available on our Residential Auction Results page.
The strong increase in activity at the latest auctions was not unexpected as the first wave of properties listed for sale after the summer break come to the end of their marketing campaigns.
Auction numbers are expected to keep increasing as we head towards March, which is traditionally the busiest month of the year for residential real estate.
The recent storms in the upper North Island and the consequential flooding will not be helping the market mood, because they can affect attendances at open homes and can leave individual properties and even entire suburbs looking the worse for wear.
With more bad weather expected over the next few days life won't be getting any easier for those in the market, whether they be vendors, potential buyers or the agents that deal with both groups.
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39 Comments
still downward pressure on the property market then.
Read the article.
60% selling below RV. We expect to see this percentage increasing going through winter.
Just as some breakfast cereal topping for the dgms
I have noticed a small trend developing, where projects tendered on are getting cost analysis queries, wanting amended prices to either delete sections of a build, or modify the nature of it for a savings.
3 this year so far, can't recall seeing anything like that at all for years.
The reckoning is coming, rejoice!
That's the tragedy. We shouldn't have to have a Reckoning to change the economy. We, and pretty much everyone else, shouldn't have built it the way we built it. Once we all gave away our manufacturing/production bases to the lowest common denominator, what was left but cannibalistic speculation? We've been importing Deflation for many decade's now without truly recognising it, as imported goods prices fell away and we partied on. What we see now is those Inflation chickens coming home to roost.
So if we have to have fall-out, let's rebuild a system that works property. And the answer to that is really quite simple - let's target where Debt is applied; how much, what it costs and what for.
Just to disappoint you, the economic situation we're heading into isn't a concerted effort to recalibrate the housing market. Housing will be affected, but it's a smaller part of a larger story.
Not disappointed at all.
I don't see any alternative to every part of the economy being affected. The RBNZ has told us as much, if only we listened. (and almost every other Central Bank, bar the BoJ - who can do what they want as Japan owes no one anything. They did the hard yards, saved and have an amount of insulation that the rest of us don't) But the segments that suffer the worst of what's ahead will be those that have the biggest distortions. We can all draw our own conclusions as to which they are.
The BoJ may look sweet but the Japanese government has some of the worst debt in the world. This will only amplify as it's shrinking tax base has to cover it's increasing liabilities.
Balance is a fairly elusive state to achieve.
Does it? Japan basically owes that Debt to itself. " Japan — the largest foreign holder of U.S. Treasury securities...Rising yields on Japanese 10-year government bonds are giving investors further reason to repatriate capital" etc. And that's just its US holdings.
And when that capital 'goes home' what do we think will fill its place? Yep. Much higher local rates to try to stop it going in the first place. There, HERE and everywhere.
https://www.spglobal.com/marketintelligence/en/news-insights/latest-new…
Everyone's hoping they spot the canary in the coalmine.
Question: how easy do you think it is for any country to replicate Japan's position? You basically have to lose a war, get destroyed, and have a large global hegemon bankroll your reconstruction and re-industrialisation.
Watch out Aussie, we're coming for you in the name of economic transformation.
The canary died some time back. Probably 2008 the poor voiceless thing finally fell off the perch; dead from over-screeching its unheaded warning. Another one of our mistakes. Now, the economic gas is coming to get us, and what is supposed to be odourless is getting stronger smelling by the day.
I noticed Barfoots where having a better week, not sure they got to 30% but the north shore bays where moving at the cheaper end.
Buying at these current prices is stupidity.
Doesn't matter what ever reason people give to do that stupidity.
Buyers need to club together and demand lower prices.
If you win a lotto or get huge inheritance, then yes go for that stupid decesion, otherwise you aren't winning if you buy now at the prices sellers want to sell. Do not listen to that RE agent, they are lying. Ask ChatGPT. 😁😁😁
Buying at these current prices is stupidity.
It's better than buying at prices of a year ago, lol.
Buyers need to club together and demand lower prices
Great plan /sarc
Then either never buy or buy en masse like a surge wave
No, buyers aren't that stupid
More houses up for auction as we move out of the summer holidays is not a surprise, but more than twice as many sold than the previous week is quite surprising.
Personally I'm also surprised that 41% sold above RV, I expected this %age to be much lower.
I saw a couple sell at 1.2 mil cv 750k ish deals, i suspected that they going to developer owning next door. when you looked at the site on google the density surrounding them was way high and they where 6-700sqm. Also a few older homes in north shore bays selling just over/at cv.
Personally I'm also surprised that 41% sold above RV, I expected this %age to be much lower.
That's only 26 houses Dr Y. I wouldn't be heading down the road to pick up the champagne based on those digits.
And many that sold where held for a really long time since last sale so its paper losses on these. I suspect a few where going into retirement villages given the interior age.
"And many that sold where held for a really long time since last sale so its paper losses on these."
If they were held for "a really long time" they made huge gains, but sure, whatever rocks your boat.
What percentage of houses have a RV from 2 years ago? Probably around 33% (given it MUST be updated every 3 years). We're still not back to 2020 prices.
no, we are still hoping for 2021 prices, which is why there is a wide gap in estimated "value" between sellers and buyers. Market moved up around 20 odd % in 21.
In Auckland, RV's got updated in September 2022, so no, the RV's are NOT old.
In 2021 actually
Yvil, the article is about the whole NZ.
Sure Auckland is the biggest market, but you get my point, of those 41% sold above RV, how many below peak price?
Oops, you are right, I stand corrected. I apologise for my blatant mistake
pent up demand.
More information on wellington region sales would be helpful. I realize that particular sales data doesn't fit the intended narrative so I won't hold my breath.
Interest.co.nz doesn't have an "intended narrative", it's just that the Auckland market is by far the biggest. For region specific data, REINZ provides very detailed data.
Otago and Wellington are excluded, and possibly others too. We're not just talking about Auckland though are we? there is sales data from BOP, Canterbury, Waikato...
As above,
Oops, you are right, I stand corrected. I apologise for my blatant mistake
just got an email from broker, major bank, 12 months sub 5% rate.
Blink and you'll miss the market bottom.
be quick, yeah right!
Was that a mortgage rate or a TD rate? 1.5% off carded rates on a mortgage seems unlikely.
I would assume the 4.99% 1 yr special mortgage rate being offered (but not openly) by BNZ.
11 / 37 auctions (29%) in the Auckland City district sold. Of those that sold, 5 were leasehold properties selling for less than $250k. I suspect that the very slight "uptick" in activity and clearance rates is largely due to sellers being more willing to meet the market on auction day and investors looking to selldown some stock.
REINZ data out this week.
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