Sales stronger in Auckland and weaker in Canterbury at the latest property auctions

Property / news

More than half the properties offered at the latest Auckland auctions sold under the hammer

14th Jul 23, 8:30am by Greg Ninness

There were fewer properties on offer at the latest auctions but the sales rate firmed slightly.

A total of 171 residential properties were offered at the auctions monitored by interest.co.nz from 8 to 13 July, down from 213 the previous week.

The decline in auctions numbers was not unexpected, due to the Matariki long weekend.

Of the 171 properties on offer, 80 were sold under the hammer, giving an overall sales rate of 47%, up slightly from 43% the previous week.

Sales rates were stronger in Auckland where more than half (55%) of the properties auctioned were sold under the hammer, while in Canterbury the sales rate was weaker at just 11%, a reversal of the usual positions with sales usually being stronger in Canterbury and weaker in Auckland.

However one week of results does not make a trend, especially when it is a short week.

One trend that does appear to be emerging is that vendors taking their properties to auction are generally more serious about selling and are accepting current market conditions and becoming more realistic with their price expectations.

Vendors prepared to meet the market are finding buyers, while those hoping for higher prices are tending to remove their properties from the market or hold back from listing for the time being.

If this trend continues it could stimulate sales but would not necessarily lead to an increase in prices.

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 (where they could be matched), are available on our Residential Auction Results page.

The comment stream on this article is now closed.

Residential Auction Results
at auctions monitored by interest.co.nz
8-13 July 2020
District	Total	Sold	% Sold	% of selling prices above or equal to their rating valuations
Northland	1	1	100%	100%
Auckland	128	70	55%	31%
-Rodney	4	1	25%	100%
-North Shore	24	16	67%	38%
-Waitakere	7	3	43%	0
-Central suburbs	32	19	59%	12%
-Manukau	46	26	57%	36%
-Papakura	7	3	43%	67%
-Franklin	8	2	25%	50%
Coromandel	3	0	0	0
Waikato	7	1	18%	0
Bay of Plenty	11	5	45%	40%
Taupo	1	0	0	0
Palmerston North	2	1	50%	0
Canterbury	18	2	11%	0
All of Aotearoa	171	80	47%	31%

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122 Comments

by Retired-Poppy | 14th Jul 23, 8:36am 1689280580

In 2019-21, Spruikers measure of choice was to gauge price gains along-side the prevailing rate of inflation and returns for FHB savers. Today, they’re reluctant to apply the same measure because it means house prices are still falling heavily with 6% on offer for FHB savers. Even REINZ said themselves they project a prolonged “floor” under house prices from here forward, in which case, they’re still falling. It will be several years before house prices once again exceed the prevailing rate of inflation therefore, it’s a no brainer that FHB’s bide their time.

There is no hurry whatsoever - no FOMO.

by MikeM | 14th Jul 23, 8:52am 1689281544

I think the days of double digit property value growth are behind us. The CCCFA and the government's responsible lending rules will see to that.

by Retired-Poppy | 14th Jul 23, 8:56am 1689281782

Lets not forget the RBNZ's introduction of DTI measures.

by Nifty1 | 14th Jul 23, 9:50am 1689285013

What DTI measures RP... nothings been introduced yet?

by Retired-Poppy | 14th Jul 23, 10:20am 1689286835

3-April 23 - "Banks will be given 12 months to prepare their systems for possible implementation of DTI restrictions. Therefore, the earliest date we would do this is likely to be March 2024"

https://www.rbnz.govt.nz/hub/news/2023/04/reserve-bank-releases-debt-to….

At very best, house prices are going nowhere for the foreseeable future. Right now, FHB's should consider the huge amounts of dead interest money they'll end up paying on a still overpriced asset. There are now also huge increases in rates, insurance to consider too.

by Nifty1 | 14th Jul 23, 10:22am 1689286934

Yeah thanks for backing up my point... nothing implemented, just talk...

by Nzdan | 14th Jul 23, 10:25am 1689287114

"This is what we are doing, when we are doing it, and when it'll likely be implemented".

*just talk*

by Nifty1 | 14th Jul 23, 10:32am 1689287576

When it will likely be implemented...

March 2024..."earliest". You should know how this works...

The RBNZ thinks we're at "sustainable" house price levels, so this DTI which if introduced would do little for improving affordability... given they'd probably set it something like 7. The game must go on.

by Retired-Poppy | 14th Jul 23, 10:48am 1689288482

"the RBNZ thinks house prices are at more sustainable levels" Sorry Nifty, but nice try. They are "more sustainable" doesn't mean they're "actually sustainable" at current levels at this time. They are simply more sustainable than they were in Nov-21.

https://www.interest.co.nz/bonds/122965/ocr-decision-rbnz-hits-pause-af…

More falls or at best stagnation at current levels for several years will make prices even more sustainable. No doubt the introduction of DTI will help them achieve sustainable levels.

by Nifty1 | 14th Jul 23, 11:01am 1689289270

Orr will crush your dreams, again RP...

by mfd | 14th Jul 23, 11:31am 1689291115

I think you're right, the DTI will be set high enough that it doesn't seriously bother most FHBs or owner occupiers.

Such a level will still completely destroy the game of leveraging large property portfolios, however, unless the investor has an enormous salary to support the lending.

by Colin Cameron | 14th Jul 23, 6:17pm 1689315465

Most large property investors don't use retail banks which DTI is tied to. Second tier lenders are not obligated also most investors are set up in business again the DTI is not tied to that. Resimac who is a big 2nd tier lender floating rate is the same as ANZ last time I looked.

by Averageman | 14th Jul 23, 7:36pm 1689320170

Vote TOP then. Rental houses require 100% equity and pay an annual land tax. Would be hard to avoid them apples...

by Ben72 | 14th Jul 23, 12:33pm 1689294784

RBA governor dumped ..

by Ben72 | 14th Jul 23, 12:30pm 1689294642

Aussie RBA governor out …. NZ governor should follow soon.

https://www.news.com.au/finance/economy/australian-economy/government-s…-

by tothepoint | 14th Jul 23, 9:36am 1689284167

Note that Retired-Poppy was advising first-home buyers to "bide their time" way back in 2017/18. Those who did so have lived to regret it.......

You can calculate how much they've foregone financially through continuing to pay (increasing) rent to a landlord - and missing out on hefty capital appreciation.

If you accept the consistently poor advice of people like Retired-Poppy, you will never live in a home of your own and enjoy the many intangible benefits that home ownership brings - in addition to all the tangible (financial / wealth) gain. A pity.

TTP

by Pa1nter | 14th Jul 23, 9:04am 1689282298

Note that Retired-Poppy was advising first-home buyers to "bide their time" way back in 2017/18

This schtick has been going on this long?

Spose it was this or model trains.

by Hawkes Bay | 14th Jul 23, 9:35am 1689284122

Is this yet again another of your fake accounts Tim ? Tothepoint, ToThePurloined, Pa1nter, there always seems to be 4 upticks. Sneaky, Manipulating and Fraudulent.

by ToThePurloined | 5th Jul 23, 1:52pm

Hi Chairman Moa,

Maybe if you spent less time on ‘writing’ frivolous sing songs and poems, and more time exploring investment property, you would realise that the data shows that the bottom is in and there has never been a better time to invest in property.

What the DGM trolls that frequent this website fail to realise, is the consistent resilience of the NZ property market. Simply put, there is not better investment to make that provides one with security over their financial future.

Of course, I am but a lowly renter, but I can’t help but get excited over the clear bottoming ... Read more

by Chairman Moa | 5th Jul 23, 1:58pm

Sorry I've spent enough time in my youth in Palmerston North, it is shxt this time of the year, wet, damp and windy as...!

Undo

by Zwifter | 5th Jul 23, 2:19pm

To be fair I'm in one of the best weather regions in NZ and its been nothing but wet, damp and windy as for months now. Had to get the outdoor furniture off the deck and bring it inside for only the second time ever before it blew away the other day.

by Yvil | 14th Jul 23, 11:52am 1689292375

"Is this yet again another of your fake accounts Tim ? Tothepoint, ToThePurloined, Pa1nter, there always seems to be 4 upticks"

You have 4 upticks yourself 😂

by malamah | 14th Jul 23, 11:56am 1689292605

TTP hedging his bets playing both ends of the rusty trumpet.

by Hawkes Bay | 14th Jul 23, 12:13pm 1689293596

Wrong yet again Yvile.

by Yvil | 14th Jul 23, 3:28pm 1689305329

True, by now you have 10 upticks, so by your logic, you have 10 different accounts ?

by Hawkes Bay | 14th Jul 23, 4:28pm 1689308925

I think that is going by your logic Y vile.

by Yvil | 14th Jul 23, 9:39pm 1689327591

Oooh, you're getting very creative now, you went from Yvil to Yvile and now, you put a space between the "Y" and the "vile". Amazing!

by Pragmatist | 14th Jul 23, 1:03pm 1689296634

HBs had way more than 4 accounts, they have all been banned tho. Can't wait till this one gets the same treatment.

by Retired-Poppy | 14th Jul 23, 1:19pm 1689297578

Pragmatist, will banning the messenger void guarantee of 10% interest rates this year?

by Pragmatist | 14th Jul 23, 1:41pm 1689298866

Lol, that gaurantee is worth about the same as the budget brand toilet paper it's written on.

by Hawkes Bay | 14th Jul 23, 4:31pm 1689309101

7% was worth it's weight in Gold ! Sadly some just keep on making the same mistakes over and over and over ...................................................

by malamah | 14th Jul 23, 9:10am 1689282607

“Missing out on hefty capital appreciation”

Nah, that makes no sense. But you already know that.

Unless they were trying to buy investment properties. Hefty capital appreciation makes the next rung on the ladder harder to reach as the distribution spreads, and they’re less likely to be able to make the additional payments on top of their existing mortgage. The only people who benefit from massive appreciation are people who cash in on their equity or downsize. Everyone else gets sucked in by idiots who tell them it’s good for them but really they’re worse off.

FHB should make their own decisions but let’s not forget we’ve been in bubble territory for about a decade, maybe longer. She’s teetering.

by tothepoint | 14th Jul 23, 9:21am 1689283283

Hi Malamah,

I daresay that those who have gained satisfaction through home ownership and multiplied their wealth in doing so, would beg to disagree with you. 😁

TTP

by DDDDebt | 14th Jul 23, 10:21am 1689286884

I daresay, the last person a FHB should take advice from is a convicted fraudster.

2nd to that, someone who stupidly bought a penthouse apartment in palmy speculating to flick it on for capital gains

3rd to that is someone, who turned down an offer for $750k for the apartment in palmy with a dodgy corporate body because they greedily wanted $850k

4th to that someone, who is missing out on hefty income and capital appreciation from 6% term deposits because they have capital locked in a dodgy apartment no one will EVER buy…

5th to that someone, who is now having to top-up $50k+ per annum on their bad investment as the net yield is so poor and they didn’t think rates would go back above 4%

6th to that is someone who is a mega landlord to FHBs

7th to that, someone who is vested in the liquidity of the NZ property market as they own a nationwide real estate company

8th to that, a boomer who has no sympathy for the world they have created for FHBs and the next generation, but happily wants to throw them under the bus

9th to that, someone who probably think’s The Comb is a straight up guy

Anything I missed?

by malamah | 14th Jul 23, 11:20am 1689290448

The money laundering.

by Retired-Poppy | 14th Jul 23, 12:55pm 1689296139

👏 by tothepoint - d… | 24th Feb 17, 10:00am - "A fall of a mere 12% over the next 3-4 years would be a soft-landing, given the spectacular gains of the recent past. So, hardly a forecast to get too uptight about. But the fall could be more pronounced than that - shouldn't rule that out. Auckland property prices are in decline now. Unless there's a compelling personal reason, why would one buy a house in Auckland at this juncture?" One must assume he posted his own "poor advice" prior to becoming a Property Broker?

by Retired-Poppy | 14th Jul 23, 12:37pm 1689295038

Malamah is right, nobody foresaw the onslaught of COVID, the money printing and the resulting stupidity. Being unchartered territory, it blew many a forecast (including mine) out of the water.

by starrider | 17th Jul 23, 1:31pm 1689557502

You mean this one? Property Brokers and director ordered to pay $1.5M for price fixing | BusinessDesk

by malamah | 14th Jul 23, 11:20am 1689290415

Oh yep. They can simply take some of that wealth and use it to pay off the all consuming mortgage 🙃

I agree, they now have a home of their own and that’s some satisfaction. But RPs advice was not bad in retrospect, the market flatlined through those years and took off again once the covid flurry hit. Nobody could’ve predicted that.

But any 30 year old who thinks they’re rich because they managed to buy their own home which they still have to live in and work to pay off is dreaming. If the decisions purely financial, I could retrospectively find you a number of ways to become wealthy over the last few years and be liquid, buy the house outright at whatever price and away she goes.

Theres no medal for predicting the past.

by Solid_Granite | 14th Jul 23, 9:48am 1689284916

We can't all buy houses and all become richer. The world doesn't work that way.

by Colin Cameron | 14th Jul 23, 6:19pm 1689315566

A bit like that economists who said he would never buy a house at those prices put it into shares this is pre 2019

by E46 | 14th Jul 23, 8:46pm 1689324377

Aren’t shares way up since 2019?

by Colin Cameron | 15th Jul 23, 5:07am 1689354426

you mean like A2

by E46 | 15th Jul 23, 9:35am 1689370555

That’s one stock dude, nobody invests it all in one stock that would be insane. You could flip the argument around as well, what about something like NVIDIA which is up like 600% in the last 5 years, or Apple which is up 300%.

But most investors these days will be investing in diversified index funds which have been generally performing well and don’t carry the same risk, something like the S&P 500 has actually been outperforming the NZ housing market.

Shares do carry a lot of volatility but generally have been performing well long term. As with anything though past returns are not indicative of future performance, but the same applies to the housing market.

by Juzz | 14th Jul 23, 8:43am 1689281031

So 91.56 sold the previous week, how is going from 91.56 to 80 an increase. Surely a mistake (43% of 213)

by MikeM | 14th Jul 23, 8:49am 1689281379

The return of immigration showing up in the Auckland stats I imagine.

by JimboJones | 14th Jul 23, 6:35pm 1689316543

Yes, and I’m starting to believe this is the bottom, for Auckland at least. Before you call me a spruiker, I’ll clarify that the bottom should be a hell of a lot lower at current interest rates, but the NZ property market never seems to listen to logic.

by nigelh | 14th Jul 23, 9:01am 1689282094

"Vendors prepared to meet the market are finding buyers"

I must admit I don't really understand market and selling. My interpretation in regard to housing is that someone who is marketing their house does not necessarily want to sell unless a buyer meets the vendors price. On the other hand someone who wants to sell actually lowers their price to sell.

The upshot is many marketing, few want to sell.

by Juzz | 14th Jul 23, 9:03am 1689282199

Even fewer still are worth buying at any price

by nguturoa | 14th Jul 23, 9:20am 1689283247

Waikato and Canterbury are really leading the race.

Anyone still buying falls in the Darwin' theory that some just don't survive because of poor decision in their life.

The prices of houses is far too expensive at this point in this land hugely impacted by climate change and at the bum end of the world. To get here from anywhere decent in the world is also a mission, needing 2-3 expensive flights.

by Colin Cameron | 14th Jul 23, 6:22pm 1689315760

Don't know what part of canturbury you are talking about certainly ain't were I am looking. Please let me know were so I can go look

by HouseMouse | 14th Jul 23, 9:24am 1689283480

Palmy on fire!!!!

by live4ever | 14th Jul 23, 9:26am 1689283618

Yes, anecdotally some vendors are getting really desperate and life goes on (overseas moves, deaths, divorces, business failures, etc.)

If you've planned on selling this year, you'd be silly trying to hold on to property for a better price. Interest rates are not going anywhere. Lots of new builds still to hit the market. People's purchasing power is greatly reduced with the cost of living.

There's not going to be a better time to get rid of that property in the next year than now if you have to.

by Hawkes Bay | 14th Jul 23, 9:41am 1689284462

" Interest rates are not going anywhere." Oh Yes They Are.

10% Interest Rates This Year, Guaranteed !

by live4ever | 14th Jul 23, 10:07am 1689286060

Except up. Fair point.

by Home not a house | 14th Jul 23, 11:07am 1689289677

Funny the first fifty times I heard it. Not even accurate information, just the standard doom and gloom porn that gets this forum all excited.

by Yvil | 14th Jul 23, 3:31pm 1689305488

"Funny the first fifty times I heard it."

You're a very patient person Hnah!

by Hawkes Bay | 14th Jul 23, 4:39pm 1689309559

Yvile gets shudders of Terror every time he hears it.

His illusional empire is crumbling, Fast.

by Yvil | 14th Jul 23, 9:40pm 1689327650

Yes, I'm trembling with fear, lying on the daybed by the pool, with a Bintang in my hand. A truely terrible position to be in!

by Flying high | 15th Jul 23, 5:20am 1689355218

We are envious of your rich famous lifestyle. But does your wife get irritated you're spending time here and not with her

Good on you HB keep it up

by Yvil | 15th Jul 23, 3:07pm 1689390475

2 things FH.

1) I do realize that my reply above is show-offey, but I only do it in reply to HB's silly attacks that I'm trembling with fear.

2) I have been happily married for 30 years, and no, my beautiful wife doesn't mind me spending time on Interest.

by Nifty1 | 14th Jul 23, 10:00am 1689285615

The market manipulation by RBNZ, Govt, Banks, REA industry & NZ Media is working perfectly... winter is heating up and we're not talking global warming this time.

by Retired-Poppy | 14th Jul 23, 10:02am 1689285755

Of course there is no attempt to manipulate FHB's into bailing out others who have made poorly times choices - no attempts at all :)

Some here think the okay thing to do is to pay sh-t loads of dead money in interest payments to a Landlord bank on a yet still overvalued asset.

by Chaosinflesh | 14th Jul 23, 10:11am 1689286295

Interesting isn't it. I mean, the stats out of QV earlier this week made zero sense. 3 tiny markets recorded price increases, and the 2nd biggest (christchurch) almost a 3k increase. Meanwhile, the largest (auckland) dropped 16k, and the rest of the country dropped as well - yet somehow the average value rose 2.6k? I smell some very very creative use of statistics.

Note that REINZ records Auckland having approximately double the houses of Christchurch, and almost double the sales of Christchurch, and yet somehow Christchurch's 2.9k increase outweighed Auckland's 16k drop? I call bs.

by malamah | 14th Jul 23, 11:25am 1689290704

The best way to write spam and phishing email is to fill it with mistakes and typos. It lures out the idiots.

by HouseMouse | 14th Jul 23, 10:55am 1689288925

Probably a dead cat bounce on the back of that huge collective effort to spruik the market. I still think there is a further 3-5% to fall.

But time will tell.

by tomjones_04 | 14th Jul 23, 12:20pm 1689294011

I hate to admit it, but I agree with Nifty1. The game is too big to fail. Politics is a popularity contest, and as long as there is a caveman attitude to manufacturing and production, we'll continue along the inequality route. Kiwis are too one dimensional to change.

by kwbrn | 14th Jul 23, 10:00am 1689285653

Do banks factor in the possibility of interest back on student loans? An extra 6 or 7k a year is significant.

https://www.act.org.nz/act_will_hold_nats_to_no_new_taxes

by HouseMouse | 14th Jul 23, 10:56am 1689289013

Nah they won’t factor in a ‘possible’ policy of a minor party that does not currently form part of government.

by kwbrn | 14th Jul 23, 11:23am 1689290623

FHB's should.

by Pragmatist | 14th Jul 23, 11:26am 1689290784

Putting interest back on student loans wouldn't change repayments, so it would make zero difference. Also it requires ACT being able to implement that policy, so not going to happen.

by kwbrn | 14th Jul 23, 12:38pm 1689295084

We should then ignore Labour's potential coalition partners policies.

by Pragmatist | 14th Jul 23, 12:57pm 1689296249

The difference s that Labour would swallow some of those dead rats to stay in power, so they could be implemented.

by kwbrn | 14th Jul 23, 2:03pm 1689300209

So the only thing we can rely on from an ACT/NAT coalition is that they will implement policies that are for their personal gain.

by Pragmatist | 14th Jul 23, 2:35pm 1689302144

Not what I said, but you do you.

by Zwifter | 14th Jul 23, 11:22am 1689290536

Bugger my place is up again on Homes that's two months in a row now.

by malamah | 14th Jul 23, 11:27am 1689290856

Do people still use homes as a valuation tool?? Interesting.

by Averageman | 14th Jul 23, 11:34am 1689291262

As a valuation fool.

by Retired-Poppy | 14th Jul 23, 11:42am 1689291731

Zwifter checks his daily. Right now - the best valuation tool is a for sale sign with the words "by negotiation - realistic vendor"

by Nzdan | 14th Jul 23, 1:34pm 1689298464

Just checked mine. Up well over 20% since we bought in 2021. Meanwhile in the ANZ banking app, it's currently down ~15% on our purchase price.

Needless to say, I think this demonstrates the Homes.co.nz valuations are complete rubbish. Imagine if i went to sell my place today, received an offer for Homes.co valuation and the buyer went to ANZ to proceed with their preapproval? They'll likely be declined on the basis they're borrowing more than ANZ's internal valuation.

by Juzz | 14th Jul 23, 2:19pm 1689301177

If they've got plenty of deposit or equity the bank will probably still finance though. Interactions lately with agents have been to offer more, problem is the bank won't lend more unless you're in that high equity situation.

by Zwifter | 14th Jul 23, 2:27pm 1689301673

Yep suck it up guys if you are going to accept the falls over the last year you have to accept when it starts rising again.

by Colin Cameron | 14th Jul 23, 6:27pm 1689316051

One of mine with ANZ (using ANZ valuation) has gone up over 100k in the last yr. It almost values the same as the 4brm brand new one I built behind it and its only a 3brm I do wonder about these valuation sites even if it's the banks one

by Zachary Smith | 14th Jul 23, 12:17pm 1689293852

I've just been going through my bookmarked "houses that passed in with good bids" list and was quite surprised by how many have subsequently sold, some for more than a couple of hundred thousand above the final bid. I only found one that sold for 50k less. It certainly pays to refuse a low bid. Well done those folk.

by nguturoa | 14th Jul 23, 12:27pm 1689294461

And you think that's a good thing?

by Zachary Smith | 14th Jul 23, 12:41pm 1689295299

Yes, if everyone panicked like a dgm it would be disastrous. These sellers and buyers set the market price as it should be. Sellers are generally confident they have a good product and it pays off for them. The buyers will probably win as well.

by nguturoa | 14th Jul 23, 1:07pm 1689296850

Do you have kids or grand kids?

What you see going around with this housing greed, so you think this makes the country liveable for them?

And you are patting the vendors on the back for this? Seriously, how short sighted are the people these days. I guess people need to go to specsavers.

by Zachary Smith | 14th Jul 23, 1:48pm 1689299297

What are you, some sort of communist?

Look, this thread is a discussion of auction results. My observations have shown that even in these problematic times it pays not to panic and accept a low price. Every case will be different however a good quality property is very valuable. Readers who are contemplating selling should keep this in mind, do some research, don't get pressured by the agents or the auctioneer to sell too low.

by kwbrn | 14th Jul 23, 2:06pm 1689300398

I don't think so. Nquturoa thinks of the good of the country not just his own personal gain.

by Zachary Smith | 14th Jul 23, 2:32pm 1689301947

This is not the thread for that discussion.

by Retired-Poppy | 14th Jul 23, 2:56pm 1689303411

Considering our ages Zac (I'm 57) and the fact we're financially established, the right and more positive stance would be to hope for a market better suited to the younger FHB.

by Zachary Smith | 14th Jul 23, 2:55pm 1689303320

Just reporting what I have observed. This web site is for people interested in financial stuff.

by Retired-Poppy | 14th Jul 23, 2:57pm 1689303472

Yes, but do you agree with the above?

by Zachary Smith | 14th Jul 23, 2:59pm 1689303574

No, not at all, I believe it is dangerous.

by Retired-Poppy | 14th Jul 23, 3:01pm 1689303664

Spruikers to a tee :)

by nktokyo | 14th Jul 23, 3:39pm 1689305943

This thread is why I'm close to giving up on this website. Every topic is hijacked by the same group of posters with the same agenda. Someone pointing out auction results in a comments section of an article about auction results is labeled a spruiker.

by Retired-Poppy | 14th Jul 23, 4:11pm 1689307915

Que - nktokyo. Its nothing short of Spruiker fueled feather nesting to purposefully deny the next generation a realistic opportunity for home ownership. When I mean home ownership, I don't mean multiple homes either. Complete deflation of this bubble would be a positive development for our great country.

by Flying high | 14th Jul 23, 5:34pm 1689312877

How widely do our comments, that we all voraciously post and consume, reach.

Read by tens of thousands probably, even if only a handful of active posters. I don't need to say this but you are the best ... by far

by tomjones_04 | 14th Jul 23, 4:12pm 1689307937

I guess property will always bring out an emotional response. It has been a great investment and wealth creation vehicle, but comes with societal consequences. Some choose to speak out about it (DGM) other choose to ignore it (spruikers). That is why we don't argue about commodities like gold, people don't live in gold or get other people to pay off their gold bank loans. This is a financial website, but I understand the emotion behind a lot of the comments.

by Zachary Smith | 14th Jul 23, 4:32pm 1689309142

We shouldn't get emotional on an auction article. People seem to draw comfort from the low success rates reported and react anxiously when I report that I was surprised by the success of many properties that passed in and subsequently sold for considerably more than the best offer on the day. I wasn't expecting it to be that way and would have reported that I was observing many properties being forced to sell below the best bid. However that turned out to be something like one in twenty or more. This led me to make the statement that refusing the best offer that is low is very likely to be the best course of action. I only tracked properties that got what I thought were pretty good bids. However many properties also continue to languish on the market unsold. A very small number have been forced to sell for less so far. It does take ages to get the results though.

by agnostium | 16th Jul 23, 10:08am 1689458898

The issue is Zachary that when you post these anecdotes of "successful" sales you do not provide any meaningful indication of what the price achieved was because you only give reference to how much above final bid it was. So if it was valued at $1M at peak and at auction the highest bid was $100K and it subsequently sold for $150K you are 'reporting' that it achieved 50K over final bid.

Now we know that you have the peak valuation and the CV so the fact that you are choosing not to include the final price in relation to those figures makes us all think you are cherry picking data to support your narrative that the market isn't crashing. The fact that you recently bought property adds to creating this impression as you have a vested interest in the market not crashing further.

Post all the data in an impartial way and we'll start to believe you are not a spruiker.

by wingman | 14th Jul 23, 5:11pm 1689311478

NZ had a net migration gain of 65,000 in the year to March.. Many of them will want to buy, and many of them will be looking around Auckland.

by malamah | 14th Jul 23, 6:54pm 1689317663

Need to be residents to buy, over 100,000 newly minted residents in 2022, NZ net 100,000 down since February in actual border crossings.

by Zachary Smith | 14th Jul 23, 5:34pm 1689312889

Some more details on properties I have been tracking that got decent bids but were passed in at B&T Auckland auctions. These are properties that people have shown interest in by bidding. The bids were not ridiculously low.

67 properties since April 2023

5 seem to have been withdrawn from sale

18 have not sold but are still listed

1 is listed for less (sad)

2 sold for 5k & 50k less

11 sold for 5k to 650k more

28 have sold but no price revealed yet. I would bet almost all will have sold for more.

2 sold for the same price

43 out of 67 have sold (64%)

by Flying high | 14th Jul 23, 5:39pm 1689313143

What about the price compared to CV for those that sold

by Zachary Smith | 15th Jul 23, 9:12am 1689369121

Most of the houses that I can find the price for have sold under CV but close to the QV estimate, perhaps a little more. QV seems to be quite accurate.

by agnostium | 16th Jul 23, 10:10am 1689459026

How much under peak estimate? You have that information, why aren't you posting it?

CV dates vary.

by Zachary Smith | 16th Jul 23, 12:35pm 1689467716

I'm not really that concerned with the peak estimate as I consider to be somewhat a "pie in the sky" figure. The main point of my comment was that it pays not to accept a low bid that is kind of reasonable but a bit uncomfortable. The majority of sellers that stayed staunch benefited from this approach. They had good reason to as there was interest in their property. Perhaps they were smart or had good agents that were working in their interest.

by IT GUY | 14th Jul 23, 9:26pm 1689326802

Sales numbers now showing capitulation is starting, lower prices to come as clearance occurs at the new agreed values..... vendors can no longer hang on, action is required. Spring is going to be ugly as vendors overwhelm buyers with listings.

by Zachary Smith | 15th Jul 23, 7:55am 1689364516

"Spring is going to be ugly"

It may be exciting

"Vendors overwhelm buyers"

How would buyers be overwhelmed? Spoilt for choice perhaps.

No need for all this emotive language.

by Nifty1 | 15th Jul 23, 8:11am 1689365503

IT GUY & Co should start an anti-spruiker website that's essentially the opposite to One Roof... maybe "One Doom" tagline "the worst is yet to come"

IT GUY would be the TA of the website with headlines...

"Spring is gong to be ugly"

"Vendors overwhelm buyers"

"All the smart people I know havent bought"

He'd be wrong every week but that wouldn't stop him...the fear mongering can't stop.

by Flying high | 15th Jul 23, 8:13am 1689365580

We are all prone to a little or a lot of emotive language from time to time.

Subsequently changing our view and outlook is also very human

IT GUY will at some point have a reversal. Or, once he is all setup, will open a new account to start spruiking

by JimboJones | 15th Jul 23, 8:38am 1689367118

He’s been right the last year or so, there has been a lot of doom for housing, although after such a purple patch it’s still well up unless you bought recently.

From here who knows, logic would say houses are still seriously overvalued compared to rental yields and FHB affordability, but I’m not sure buyers use logic when buying.

In a way I think a soft landing from inflation, which is looking more likely, could be bad for house prices as there is less need for the OCR to be lowered. I thought we’d get a terrible (not technical) recession by now and the RBNZ would cut the OCR back near 0, but this is looking less likely.

by Zachary Smith | 15th Jul 23, 8:52am 1689367920

"vendors overwhelm buyers" is IT Guy's jumping the shark moment.

by Flying high | 15th Jul 23, 10:04am 1689372284

I dont know so much.

There was talk of 14,000 mortgagee sales and sharemarket incl S&P500 doom

by IT GUY | 16th Jul 23, 7:23pm 1689492232

Play the ball not the man, watch the prices being paid spruikers, its carnage out there as cost of living bites home owners..... all good if you cashed up at the top though.........

by wingman | 15th Jul 23, 9:50am 1689371448

There's areas that will never do that well, and there's areas that are going to boom, even in gloom.

That's the trick, trying to wheedle out which suburbs or towns are going to be the target of developers, new roads and local body spending.

by HughJorgan | 15th Jul 23, 5:31pm 1689399100

I think it’s far simpler. The houses that will do better will be houses that are well above average. The growth will be driven by wealth inequality more than anything.

Even average houses won’t do well because the avaerage person is no wealthy.

by charlieandme | 15th Jul 23, 9:09am 1689368991

The property market will never recover because warming is now beyond the tipping point. The extreme heat and also rainfall in the northern hemisphere attest to an accelerated warming. The future for NZ (and other countries) property markets is decline as wild climatic events stall or reverse economic growth, massive movement of populations from unlivable hot parts of the planet to cooler areas will destroy social cohesion and hence asset values. Sell now take cover.

by wingman | 15th Jul 23, 9:59am 1689371978

Global warming...LOL....what happened to acid rain, oil running out by the year 2,000, running out of water (tell that one to the upper North Island), the ozone layer disappearing and the ice caps melting by 2010?

Property's going to be a great bet because it always pays to be a contrarian and ignore the Chicken Littles. There's a hell of a lot of very gullible people out there. Do the opposite and you'll more than likely get rich.

by Zachary Smith | 15th Jul 23, 9:52am 1689371563

People will need a property to keep out of the sun too.

In the seventies it was the return of the Ice Age that was anticipated with fear.

by charlieandme | 15th Jul 23, 11:38am 1689377916

that true shelter will be critical but often stifling

It was before my conscious time but a potential Ice Age remains on the cards if the AMOC slows or stops

by charlieandme | 15th Jul 23, 11:15am 1689376507

Acid rain was fixed by govt intervention, more oil was produced mainly from USA via fracking, there are water shortages emerging all through the world, the ozone hole was diminished by governments banning the substances that caused the problem and the ice caps, artic ice, artarctic ice and glaciers are disappearing

by wingman | 15th Jul 23, 1:00pm 1689382844

I'll tell you what I think of your doomsday scenario...I've just spent $1.225m buying some land on the outskirts of Auckland. And I expect to do pretty well out of it.

I think this might be the 16th property that I've bought. Not a goldbug are you? They're always preaching economic hell and high water.

by albinodog | 15th Jul 23, 10:01am 1689372069

Many emotional responses from both sides.

Its what makes a market. For prices to go down you still need transactions right?

Personally I don't see a meaningful bounce at 7% interest rates. When rate cut?