Auction activity continued to increase around the country last week, in spite of the challenges brought on by Cyclone Gabrielle in the upper North Island.
Surprisingly, our auction coverage also includes the results for a couple of properties in the hard hit Coromandel district that were auctioned last Thursday after Gabrielle had done its worst, a sign perhaps that life goes on even in the face of extreme adversity.
Across New Zealand interest.co.nz monitored 251 residential property auctions last week, up from 187 the previous week and 109 the week before that.
That suggests the market is now in peak selling mode as it heads towards March, which is traditionally the busiest month of the year for residential real estate.
Of the 251 properties offered at auction last week sales were achieved on 96, giving an overall sales rate of 38%, little changed from 36% the previous week.
Prices remain mostly soft, and interest.co.nz was able to match selling prices with the rating valuations of 91 properties that sold at auction, with 34% achieving prices greater than or equal to their rating valuations and 66% selling for less than their rating valuations, down from 41% that sold for more than their rating valuations the previous week.
The table below shows the auction results by region, while details of the individual properties offered at all of the auctions monitored by interest.co.nz are available on our Residential Auction Results page.
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19 Comments
Gisborne and West Coast are just humm'n along. Overall sales rate up a whopping 2%. Spruiker excitement is imminent. Sarcasm- aside, in this still over priced and down trending market, lets celebrate the fact that some realistic sellers can get on with their lives.
The trick in catching a falling knife is not grabbing it!
This is a misappropriated analogy.
Suspect Gisborne will not be humming along now. They need a lot of help.
A childish comment thread between Retired Poppy and HW2 has been deleted.
Agreed Greg, thank you. In hindsight, it was rather childish and therefore pointless.
Thanks Greg.
I dont want to engage with his brain fart comments, retired poppy is constantly trolling to get reactions. Despite being given facts he comes back with ad-hom comments. You can see from that list of screenshots he adds NOTHING to the conversation. I am sick of it, as are others.
To be fair he got absolutely smashed by a small group 18 months or so ago for his view on ppty. I suspect he is feeling a little vindicated and having his moment. One bite back and then move on.
The people managing to sell house today will be getting best price for these properties as housing market will continue to fall for some years and when bottom is finally reached it will stay for years maybe just keeping up with inflation one it’s under control.
The people managing to buy house today will be getting best price for these properties as housing market will continue to rise for some years and when top is finally reached it will stay for years maybe just keeping up with inflation one it’s under control.
Is it nonsensical, no more so than what you wrote :)
These guys are in a world of trouble... they will be lucky to get $2million in the current market
https://www.trademe.co.nz/a/property/residential/sale/auckland/auckland…
They might have another property in mind.
Did you read about the couple that bought a Kerikeri home at auction during the cyclone. Big kahunas.
A relative of mine sold prior to xhrissie at the bottom. They're extremely happy as they have the funds for their dream property which they have an agreement on now. It wouldn't have happened without the first sale
They may do but they are gonna be $500k in the hole with the bank (if they can sell it) and aren't going to be getting another mortgage with any bank anytime soon with that black mark to their name
The question is, do they have to ?
Put yourself in their shoes and ask what you would do. Its all hypothetical and isolated.
I dont even know why you brought it up
Do they have to what? Sell? The mortgagee sale is a dead giveaway old chap. I brought it up because it’s a great example of why property is not a one way bet.
I'm not sure if you know that many mortgagors (borrowers) come up with the money or agree to work with the mortgagee anytime right up till the auction.
Are you wanting to buy this house cheap or just pointing out their misfortune
Sold May 2021 for $2.15m. Again in October 2021 for $2.56m.
- Person A buys house for $2.15m, $430k deposit, $1.72m mortgage
- Sells to Person B for $2.56m, $512k deposit, $2.05m mortgage
- Person A now has $840k after mortgage paid. Less $430k deposit = $410k profit.
- A + B leave the country, let the bank take the house.
- Repeat a few times simultaneously with a Person C, D, E, F...etc
I agree, this is a plausible outcome on an expanding scale, as this down-trend continues. On the ride up, tax is a dirty word, on the ride down, debt is an ugly word. From an investment portfolio standpoint (geared only for capital gains), it makes little sense paying huge sums of interest on a declining asset. If it were shares and margin calls, selling ensues. Right now, performing a graceful exit is not such an easy thing to do with property if bought within the last 3-years. Of course, the only BLSH stories one reads in the self vested press these days are from those who "claim" they are positive geared and have been blessed with quadrupling of values. Its all warning bells.
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