All quiet on the auction front during Anzac week

Very little movement either up or down at last week's residential property auctions

Property / news

Very little movement either up or down at last week's residential property auctions

2nd May 23, 7:29am by Greg Ninness

There was a modest decline in the number of residential properties offered at auction last week, and a very small increase in the overall sales rate.

Interest.co.nz monitored the auctions of 193 properties around the country last week (22-28 April), compared to 225 the previous week, of which 67 sold under the hammer.

That gave an overall sales rate of 35%, up very slightly from 33% the previous week.

Considering that last Tuesday was a public holiday, the latest results probably suggest that auction activity is fairly flat.

Certainly a sales rate of around a third appears to be the new norm.

Similarly, the number of properties that sold for prices that were equal to or above their rating valuation (37%) was little changed from 40% the previous week, suggesting no dramatic shift in price.

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

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18 Comments

by Caughtinthemiddle | 2nd May 23, 8:08am 1682971685

None in Auckland Central Suburbs reached CV or above - ouch.

by Iceman | 2nd May 23, 9:12am 1682975573

Why is this surprising? We know that houses are generally selling for less than high 2021 cvs currently.

by Caughtinthemiddle | 2nd May 23, 9:46am 1682977609

I cannot remember the exact figure but it surprised me that previous data had circa 20% of the auctions above or equal to CV so this is a significant departure.

by Alec | 2nd May 23, 8:15am 1682972149

So from the 197 homes, just 67 homes sold, and of these only 25 equal or above ratings valuations.

Few areas like BOP were there is a big disconnect between expectations

by IT GUY | 2nd May 23, 8:52am 1682974321

Its quiet out there..... too quiet.

by Averageman | 2nd May 23, 8:53am 1682974436

Not a lot of sales on not a lot of Auctions. Yawn. Whey people let the agents push them into this for of sales in a soft/falling market is beyond me. I guess it because it the agents chance to try and force a sale.

Barfoot's update Thursday will spin this flop data into an exciting, limited, must see something, etc etc etc.

by IT GUY | 2nd May 23, 9:00am 1682974824

Many properties have issues such as unconscented work etc. The auction transfers all the risk to the buyer.

1/3 are getting a sale on the day in a tough market. Getting the price they wanted maybe a different story, but you can safely assume most of these people have little choice here, they need to sell for whatever reason. They are not healthy auctions, very little counter bidding and often only one bidder.

by Llama_360 | 2nd May 23, 9:19am 1682975941

I heard from a friend who is an agent that people are listing as sale by auction to try and flush out any cash buyers as so many conditional agreements have fallen over due to finance not being approved. That still doesn't explain why these vendors actually go ahead with an auction though.

by Averageman | 2nd May 23, 10:02am 1682978547

Hmmm. Good feedback.

by DTRH | 2nd May 23, 9:34am 1682976841

People should wait as house price’s are still falling, some people who purchased this time last year have seen price’s drop 20% and this looks like being another downward year.

by Blackbeard | 2nd May 23, 10:05am 1682978756

Yip, if you are dumb enough to buy now, the absolute maximum should be paying is 20% below CV. Otherwise wait till next year and all offers will be 30% below CV.

by Iceman | 2nd May 23, 11:04am 1682982260

So going by your logic - when rates rise, prices drop. Now that rates are plateauing, you’re still predicting big drops. Okay then…

by DTRH | 2nd May 23, 11:50am 1682985027

Many people over last few years paid way over the top for property, prices have already dropped 20% this is just the beginning rates will not be going down to emergency levels again this would just cause inflation to skyrocket. If rates plateaued out price’s will still continue to fall.

by Averageman | 2nd May 23, 7:30pm 1683012645

Many are still hiding on low rates yet to role. The spec crowd will foop its pants as their debt rolls in the next 6-18 months. Hense a lag in financial reality. PS Hope your not saying Warren Buffits often quoted comment "interest rates are to asset price what gravity is to matter" is wrong. One of the greatest investors of his generation.

Election year. Vote for FOOP. Vote for the land tax.

by Iceman | 2nd May 23, 10:59am 1682981953

Trying to time any market is generally not good advice. Just saying.

by IT GUY | 2nd May 23, 2:35pm 1682994948

Thanks for acknowledging your incompetace in basic trading..... We will not be listerning to your property price predictions further.

Just go full you boots now and go quietly to you corner safe in the knowledge that you are fully in the market.

by Shaft | 2nd May 23, 11:14am 1682982856

Open this link...

https://homes.co.nz/address/waipu/waipu/338-south-road/Z5rbN

Scroll down to the graph then read the note while looking at the graph

RE Agents are manipulating the data!!!

Ask your self why an agent can manipulate the pricing and knows better than CV or a real valuer.

Ask yourself why homes allows real estate manipulation if it's prices and data without a qualified valuation..

This house was on the market but later withdrawn unsold. It's CV probably reflects the lack of CCC for the sheds. But where's the proper valuation and how prevalent is this and does this devious behavior affect the average price for the area and the algorithm.

Apparently if you hit the, " claim my home" button you can get a REAgent to put whatever figure he likes in to the system.

by HouseMouse | 2nd May 23, 2:03pm 1682992996

Perhaps this website could investigate this.