A wee drop in auction room activity as winter rattles the windows

Property / news

Residential auction activity slowed slightly for the start of the winter season

3rd Jun 23, 6:00am by Greg Ninness

There was a small decline in activity at the latest residential property auctions as the market nudged into the first week of winter.

Interest.co.nz monitored 185 residential property auctions around the country over the week from 27 May to 2 June, down from 192 the previous week.

Of those, 64 properties were sold under the hammer, down from 70 the previous week.

That left the sales rate almost unchanged on 35% compared to 36% the previous week.

Of the properties that sold, exactly a third achieved prices that were above or equal to their rating valuations, down from 37% the previous week.

Overall, auction activity remains subdued, and the figures suggest that if activity declines further over winter, it's likely to be a slow decline rather than a steep one.

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

The comment stream on this story is now closed.

You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.

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.

33 Comments

by Jay Lim | 3rd Jun 23, 7:15am 1685733301

If I predict further property fall, many will consider me insightful.

No wonder why some people fill up the comment sections with the doomed prospects of the property market and how it will go down further.

by Pa1nter | 3rd Jun 23, 7:25am 1685733928

I find you insightful, windswept and interesting, for making such an esteemed position. You are up there with the likes of Buffet. Many riches will befall you, women will want to be you and men will want to be with you.

There, that felt better. Now let's do that back and forward a dozen or so times a day for the next 2-3 years.

by Retired-Poppy | 3rd Jun 23, 7:57am 1685735825

by Pa1nter | 3rd Jun 23, 7:25am "women will want to be you and men will want to be with you"

lol! Is this becoming a hook up site?

by tomjones_04 | 3rd Jun 23, 7:30am 1685734248

I'd consider you insightful if you said something tangible or thought provoking. There is probably another website for philosophical, cryptic, wooosa attention seeking posts. I predict the market will continue to slide through winter... there you go.. that's how it's done.

by Retired-Poppy | 3rd Jun 23, 7:42am 1685734945

....you need to be a little more thought provoking. Add a triple percentage point decline!

by Smudge02 | 3rd Jun 23, 8:25am 1685737555

You are correct, if you comment on this site people will judge that comment according to their own views and opinions and yes, there are bound to be some that find it insightful. Thats pretty much how this works. Welcome.

by Dgm | 3rd Jun 23, 8:59am 1685739596

Did you write this while asleep?

by Flying high | 3rd Jun 23, 1:44pm 1685756644

Jump the fence to this good side, get a warm welcome

by chebbo | 3rd Jun 23, 7:23am 1685733786

Meanwhile, over at Newshub:

Related video: Now could be the time for first-home buyers to strike. The latest CoreLogic House Price Index shows the downward trend in property values is finally coming to a halt.

I've seen far less dangerous and more credible claims censored as misinformation before. The other week it was the Reserve Bank promising that mortgage rates had peaked. It's almost criminal.

by Retired-Poppy | 3rd Jun 23, 7:28am 1685734092

"Now could be the time for first-home buyers to strike" If taken out of context, this is probably the best advice!

by chebbo | 3rd Jun 23, 7:39am 1685734782

"Nooo, ahah... we meant go on strike..."

by malamah | 3rd Jun 23, 7:45am 1685735124

The downward trend coming to a halt, meaning they are still falling at the same rate? Still falling the fastest they have been so be quick!

by Caughtinthemiddle | 3rd Jun 23, 7:26am 1685734012

As I have said before CV in Auckland was 5 months prior to the peak. So, although some achieved cv this still represents a drop from peak.

by Averageman | 3rd Jun 23, 7:31am 1685734319

It's not that people don't want to buy it that they can't finance the still bubbly prices. Ticket clippers...winter is coming.

by Pa1nter | 3rd Jun 23, 7:56am 1685735787

Can finance it, or don't want to make huge financial commitments in this environment. Real estate's an emotional decision for many, rather than a financial one.

Unless there's a large upside to sentiment it doesn't matter so much what prices are doing.

by HouseMouse | 3rd Jun 23, 9:28am 1685741295

Very often it’s can’t finance it.

One only has to play with a mortgage calculator to understand that.

Punch in 500,600, 700k mortgages and see what that looks like over 20 or 30 years at 6.5%. Put in a test rate of 8.5%…

by IT GUY | 3rd Jun 23, 8:16am 1685737010

To form a bottom, we need agreement between sellers and buyers re price, ie sale volumes will go up. We may well be seeing the capitulation stage now. It's not going to happen in Winter in Auckland. Buyers may start testing the market Sept/Oct/Nov, but its March 24 IMHO that we might start to see stabilisation... it will depend on how the economy global and domestic looks by then. Nothing points to a bounce FHBers will have friends who have just lost 200k+ they will need to see stabilisation. An there is an election which impacts sentiment a lot... FHBers probably not green voters.

by Palmtree08 | 3rd Jun 23, 8:32am 1685737937

At some point growing NZ population by 100s of thousands is going to create demand for somewhere to live.

by Retired-Poppy | 3rd Jun 23, 8:49am 1685738948

I think just more overcrowding and other symptoms of how poorer a nation we have become. Accommodation here is still unaffordable. Only on arrival, dream filled migrants discover just how unaffordable the basics are.

by Pa1nter | 3rd Jun 23, 8:56am 1685739365

Haha, and they'll refuse to work their little tushies off, and instead use their time wisely complaining about how they can't afford anything.

by Retired-Poppy | 3rd Jun 23, 9:46am 1685742405

Yes, feeling exploited, Australia starts looking very attractive indeed. Your modus operandi is to sometimes argue to the contrary just for the sheer hell of it :) You conveniently ignore the elephant in the room - NZ cost of living.

by Pa1nter | 3rd Jun 23, 10:51am 1685746267

I guess the difference is I dont see that as a specifically NZ problem.

by Retired-Poppy | 3rd Jun 23, 11:22am 1685748145

While your point is an obvious and convenient one, lets not be distracted from the fact that if one is resident in NZ, its more likely to be seen by the individual as a NZ problem.

by Pa1nter | 3rd Jun 23, 11:46am 1685749560

Sure.

But then it means people think the issue is merely an issue of local governance.

There's far deeper ramifications when the very system subscribed to is the issue

by wingman | 5th Jun 23, 10:40am 1685918430

I've got 2 children living in Melbourne, the rent is extortionate and property prices are going up, not down. And the cost of living is comparable to NZ, I've just been there and checked it out.

by Baywatch | 4th Jun 23, 10:55am 1685832930

Not like the 5 pound poms straight onto the docks...bloody hard back then

by redcows1 | 3rd Jun 23, 9:44am 1685742290

Assuming they numbers remain high, and that's a big assumption, at what price point will these newbies be looking to buy. Will they be looking to buy at all. I'd suggest the majority will be looking for low cost rental rather than the million dollar "investment property" that makes up a large portion of the for sale.

by 100bucks | 3rd Jun 23, 10:48am 1685746086

If that is the case then auctions would be hot and sales and prices going off.

Immigration figures are not To be trusted and do not reflect who are becoming house buying NZ residents and who are just passing thru to Australia, renting existing stock. Or shacking up with reĺlies etc.

Immigration stats show its Indians and Philippines that are the bulk of new residents that are being fast tracked into essential residential status residency.

Population growth has slowed with higher deaths /lower births and the fact that across NZ auction sales are down, new builds sales are down, section sales have stopped and stock is not selling suggests the down wards spiral has a long way to go.

Even Homes.co " RE influenced " data and $ales price expectation graphs graphs have revealed huge declines that have increased ithe last week.

by GetFeeling | 3rd Jun 23, 2:56pm 1685761018

Almost right, ITGUY ... This is better:

To form a bottom, we need agreement between sellers and buyers - in equal numbers - re price, ie sale volumes will go up.

Until the numbers are roughly equal, we'll see no bottom. This is why a property crash can drag on for years.

by 100bucks | 3rd Jun 23, 4:10pm 1685765403

WTF. Agreement between who, when and where.

Every sale in every area is different.

Auckland rich areas with sort after location is always in agreement... Now look at Kaikohe and ask when will they ever be a sellers market like remuera..ya dreamin!

by nguturoa | 3rd Jun 23, 12:13pm 1685751233

Winter is coming and this will be a long and long winter for housing market.

The ones who bought in the last few months while the values are still falling down were the desperate ones with some extra cash. Now they are also out of the market, so just watch how the gravity works on a stone when there is no support underneath.

The 7% interest rates are no joke, that is $7000 interest only per year only a 100k mortgage. To earn that 7000 interest only is 10000 of actual income before taxes.

Good luck to these crazy prices in this poor country and life long bank slavery. ✈️✈️🕊️🕊️

by Rob Reid | 3rd Jun 23, 12:53pm 1685753633

Attention property investors. Please buy up a storm - I am looking for somewhere to rent - North Shore.

Cheers.

by wingman | 5th Jun 23, 9:53am 1685915580

Great time to buy if you've got the moolah, there's some willing sellers out there. If this isn't the bottom, it's very close.

Builders going to the wall and high interest rates, a perfect storm. Some big projects underway, canny buyers will be looking to purchase nearby.