The sales rate at residential property auctions monitored by interest.co.nz slipped to 43% in the September 16-22 week, continuing a weakening trend in September.
Nationally, there were 10 more housing auctions last week but nine fewer sales. But the proportion selling at or above their rating valuation rose, even if more than six in 10 aren't yet making rating valuation levels.
In Auckland there was a noticeable fall off in auctions on the North Shore, even if the sales rate changed little. But those that did sell achieved improved prices with the highest proportion selling at or above rating values in more than a month.
That contrasts with a big rise in Auckland City central suburbs offerings, including apartments. But those that did sell didn't show any spark. About four in five didn't achieve rating values in this growing set. It was up to the Manukau and Franklin regions to pick up the central city drag, with improving sales rates and better rating value outcomes.
In Christchurch it is much more likely vendors will achieve rating valuation or better
If real estate auction activity reflected in the auctions monitored by interest.co.nz is any indication, perhaps the spring selling season is off to a lacklustre start. So far in September, we have monitored just over 800 auctions with 382 selling. But as the month has progressed the sales rate has slipped. And only 38% have achieved rating valuations. That isn't a sign of a market recovery building. But, and it is an important but, auctions are a small corner of the overall housing resales market and may well not be telling the full story.
But it is a concern that in the first week of September the sales rate was 54%, falling to 47% in the second week, and in this latest week it's down to 43%. It isn't a trend realtors will tell you about, especially if they promote an 'auction' as their preferred sales method.
In the auction market, buyers have the upper hand.
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.
[Greg Ninness is on vacation].
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.