Slightly fewer homes sell under the hammer at the latest auctions

Property / news

Very little movement in auction activity from week to week as winter takes hold

10th Jul 23, 10:21am by Greg Ninness

The number of properties offered at the auctions monitored by interest.co.nz last week was little changed, but sales were down slightly.

There were 213 properties offered at the auctions monitored by interest.co.nz over the week of 1-7 July, barely changed from 214 the previous week.

Of those, 91 sold under the hammer, down from 100 the previous week.

That pushed the overall sales rate down to 43% from 47% the previous week.

Of the properties that sold and were able to be matched with their rating valuations, exactly a quarter sold for amounts greater than or equal to their rating valuations, down from 29% the previous week.

Overall we are seeing only slight changes in auction activity from week to week as the market settles into its winter groove, with nothing to suggest any significant movement either way.

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

The comment stream on this story is now closed.

The table below shows the district-by-district results.

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29 Comments

by nguturoa | 10th Jul 23, 10:32am 1688941965

Waikato is winning the race with 10%. The vendors living their past life of 2021 prices?

by Averageman | 10th Jul 23, 10:48am 1688942915

Agreed, it's greed.

by ChrisOfNoFame | 10th Jul 23, 1:51pm 1688953876

Or maybe just ignorance? Yes, probably ignorance.

With no compulsory economics courses at high school and banks (and successive governments) that actively discourage any sort of financial literacy why wouldn't the answer be far simpler?

Why attribute one of the seven deadly sins to something the wealthy actively support?

Oh. Wait. I get it. Perhaps you are a beneficiary of this institutional ignorance?

Perhaps because it make you feel good being so very wise? Or maybe because you're a vulture?

by Dgm | 10th Jul 23, 12:26pm 1688948794

Really glad that vendors are gradually capitulating... reality has to eventually set in..

It seems the RE folks are in the same boat

by Averageman | 10th Jul 23, 10:50am 1688943038

The ticket clippers will all be really struggling. Good that can live of their super profits of the last ten years because they will have saved for a rainy day.

A lot of rain in more ways than one.

by Retired-Poppy | 10th Jul 23, 11:00am 1688943615

With stagnating or still falling sales volumes and prices, its a strange looking floor, bottom or whatever these Spruikers are purporting is happening right now.....

Still, one has to have an open mind. While we are firmly locked in a downtrend, the trajectory of prices won't necessarily be locked in one direction month after month. The appearance of a floor is one thing, a "sustainable" floor is quite something else.

by Averageman | 10th Jul 23, 11:02am 1688943738

Yield vs price paid is still quite far apart. Saw the Rabo add offering 6% for 12 months on here. Accordingly what yield should properties sell for...?

by Retired-Poppy | 10th Jul 23, 11:10am 1688944240

Averageman, this is a valid point. Compared to tenant hassles, its quite a generous low risk return. Yes, it still lags the current inflation rate but, if the saver has a house in their sights, they're winning big time!

by keithwoodford | 10th Jul 23, 10:46am 1688942767

Can we please get the date of the RV for each district.

Without that knowledge, it is meaningless as to whether the sale price is more or less than the RV.

KeithW

by agnostium | 10th Jul 23, 2:09pm 1688954993

100% agree.

I've been using the Homes peak estimate as the baseline. Yes it was probably over-egged but it would have been reasonably consistently over-egged and often was used as the estimate people used in conversation.

by ChrisOfNoFame | 10th Jul 23, 2:44pm 1688957070

These are CVs ... Council Valuations. And used to calculate the council rates you pay. They are extremely inaccurate valuations that treat each dwelling as being in much the same condition.

RVs are Registered Valuations. I.e. a registered valuer has actually visited the property and given a valuation. Banks need these because they are specifically interested in the actual (resale?) value - not a guess like the CV is.

by The Black Swan | 10th Jul 23, 10:47am 1688942820

House in blue chip Auckland location just sold at auction for 38% under CV (31 Clarence street, Devonport). Liquidity drying up fast now, we are in crash territory.

by burgleman | 10th Jul 23, 12:06pm 1688947577

Looks to have a few problems..... Would have been a great project house!

by huttman | 10th Jul 23, 1:02pm 1688950941

good location, but the house is not in good condition.

by agnostium | 10th Jul 23, 2:18pm 1688955503

Wow. $1.2M sale.

Only 100k over 2014 RV.

Homes peak estimate $2.47M

Crash looks to be accelerating ...

by Averageman | 10th Jul 23, 10:47am 1688942859

OCR review Wed afternoon. Will rates lift again, cos the banks lifting theirs are suggesting they will.

by Zwifter | 10th Jul 23, 11:38am 1688945938

The banks are not directly tied to the OCR. Will say it again its possible the OCR will remain unchanged this week, but the banks will move up anyway over the next few weeks. Not sure who is going to loose face, who is controlling who here ? Banks start moving first and then what happens to Orrs master plan ?

by ChrisOfNoFame | 10th Jul 23, 1:55pm 1688954138

With the RBA holding, methinks swap rates will continue their fall. (Been falling for a few months now even if they are trying to inch up bit by bit on occasions.) NZ retail banks - that operate as an oligarchy - are milking the last throws.

by huttman | 10th Jul 23, 10:48am 1688942927

I've been attending open homes in wellington/Lower hutt area in the past few weeks, a few observations I had:

open homes are still busy, but not as crazy as 2020/2021.
properties that require work is not the flavor of the moment. properties of good conditions go very fast.
price is much lower than 2021, but still higher than 2019
hardly any good property listing. it's just not enough good properties on the market surprisingly.

by Juzz | 10th Jul 23, 10:55am 1688943308

Are you putting offers in?

by huttman | 10th Jul 23, 11:09am 1688944182

no, just looking. all kinds of people saying all kinds of things, so I went to see things with my own eyes..

by Juzz | 10th Jul 23, 11:14am 1688944470

Yeh what you said sums it up pretty well

by ChrisOfNoFame | 10th Jul 23, 1:58pm 1688954313

When i-rates rise - most sellers haven't any money to polish the turds. Only move-in ready homes sell - thereby artificially increasing prices.

by J.C. | 10th Jul 23, 11:25am 1688945134

Over in Blighty, uncertainty is raging because of what will happen the housing bubble because of debt servicing cost pressure. Here in Nu Zillun', complacency reigns supreme.

Leading economist Allan Monks, of JP Morgan, said some indicators suggest that the Bank of England’s key rate would have to rise a further 2 percentage points to 7 per cent in order to curb inflation as prices continue to climb.

Housing experts warned that hiking the Bank’s base rate that high could be “game over” for the housing market, with one mortgage broker saying it could cause average prices to plummet.

But a leading economist said Britain is “not facing a 2007-2008 scenario”, and that there is “no sign of any crash”.

Craig Fish, managing director at London-based mortgage broker Lodestone, said that if interest rates were to hit 7 per cent, the mortgage market would “tank completely”.

“There would be massive consequences for the economy and for the housing market,” he said

https://www.independent.co.uk/news/business/interest-rates-mortgage-hou…

by Jono33 | 10th Jul 23, 1:05pm 1688951101

I read with interest the armchair experts on this site talking about property crashes, destruction of wealth and on and on. I sold 2 houses last month well below the "peak" price but for a price I wouldn't have thought possible in 2019. Nice to be cashed up when you can buy $1 for 87 cents in the bond market and still get a 7% return. You just need some imagination things look very good out there.

by J.C. | 10th Jul 23, 1:48pm 1688953731

You just need some imagination things look very good out there.

What's your tipple boss? AI?

by ChrisOfNoFame | 10th Jul 23, 2:01pm 1688954492

And how much had the vendors spent to get their properties to sell?

Funny that you don't say.

Or perhaps the value was all in the land and the homes were junk?

Funny that you don't say.

by Averageman | 10th Jul 23, 5:50pm 1688968240

Key word... "Sold". Well done. That many continue to dream of 2021 while the market continues is funny, as they only setting fire to their paper equity. But its ok... it will be more in a decade or two...maybe.

by Jono33 | 10th Jul 23, 4:03pm 1688961790

They were my houses ...... spent a couple of days and about $1000 on some touchups.