There was a slight dip in the number of properties offered at the latest residential property auctions monitored by interest.co.nz, but the auction rooms still had their third busiest week of the year.
The number of properties offered at auction peaked at 367 in the week of 7-13 October, dipped to 321 the following week and dipped again to 315 between 21-27 October.
However the last three weeks have all seen more properties being auctioned than any other week of the year, and October has already been the busiest month of the year for auctions, with still a few days to go until the end of the month.
At the latest auctions 141 properties sold under the hammer, giving an overall sales rate of 45%, little changed from the last few weeks where the sales rate has hovered around that level.
The chart below shows the district-by-district results from all of the auctions we monitor. Details of the individual properties offered at all of those auctions, including the selling prices of those that sold, are available on our Residential Auction Results page.
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42 Comments
Why does it say: "The chart below shows ... results from all of the auctions we monitor. "
Is there other auctions which interest.co does not monitor?
I think Bayleys may not be monitored, at least in Hawkes Bay. They went 2 for 5 yesterday, although 3 properties were rural. The standout to me was 7 Kent Tce in Taradale, which went for $910K against a (Sep 20) RV of $690K. The only other sale was 190Ha of mixed land out in the ranges.
The housing market is moving out of a trough. A new government, tight labour market, peaking interest rates, strong growth in immigrant numbers and a chronic shortage of houses are collectively boosting market sentiment.
The usual suspects here will resort to using old, hackneyed expressions such as "dead cat bounce', "higher for longer" and so forth - utterances that have become markedly less compelling......
TTP
Didn't they say peaking interest rates a year ago, and they would have dropped in late 2023?
The issue is what mortgage can people afford to service, which dictates the price people can afford to pay. Interest rates seem to dictate house price level more than anything else
That property last sold in June 2022 for $890k.
So the vendors lost $20k in real estate fees (which funnily enough results in a net sale of $890k after fees).
Inflation @ 6% means they have lost $53k in buying power after owning for just over 1 year.
OUCH
FH, Interest can only monitor so many auctions. There are a lot more sales by auction than 300 odd per week NZ wide! Then there are all other sales that are not via auction.
So the market is still terrible, then? Having sold hundreds of properties, I'm still amazed that anyone would restrict potential buyers by selling via Auction. They are being misled.
I agree. Perhaps only 5% of prospective buyers are in a position to make unconditional auction bids. Cutting out 95% of the market is foolish. I think auctions make the life of agents a tad easier knowing an end date so that is why they push for them. Not in the interest of the vendor.
Auctions are often just the first phase. If auction doesn't work then move on to sale by negotiation. An unconditional sale over and done with on the day is quite appealing.
No bids feels better emotionally for many vendors than low ball written offers..... no bids softens them up to realise their property is not special and price is important. Then the RE can have the discussion regarding if the property Needs to be sold or they just Want to sell it....
Zachary Smith, What a load of rubbish. I think you are trying to say that an unconditional sale on the day is quite appealing to the agency. Regardless of whether it sells or not, the agency has had the benefit of the client's marketing dollars to pump up its brand.
1689 Baptist, You are 100% correct.
What was the clearance rate in Nov 2021?
101%
We were fast running out of houses and it was the best time to buy.
I thought yesterday was the best day to buy????
I won't be surprised if you bought a property yesterday
Steady as she goes... another month of HPI increase likely. Didn't some say dead cat bounce?
Yup, pick me - pick me! I can claim ownership to that!
Hi Retired-Poppy,
I’m picking that you’re not feeling great right now, watching all your comment/predictions turn to custard - yet again. 😩
Might well be time you went on “extended leave”, just like you did last time…… 🥺
TTP
Also, I referred to this market as a "suckers market"
Why some FHB's are prepared to pay out a net 8% interest plus insurance and rates on something that adjusted for inflation is still falling, beggars belief. What a waste.
I believe autumn 2024 will present opportunities for those lowball offers! Dare I say it but, we haven't even had the real downturn yet.....
JH
It's a shame you didn't "go away" for this one. I guess $1.5m is enough to keep white collar crims out of prison.
Sales picking up for you on the Shore?
Town house rentals picking up for you on Trademe Housemouse?
If you say so.
I'm seeing lots more stock and general softening in the last week ("URGENT SALE, MUST GO" etc..). October will be a bump up but November onwards we should return to the usual 1% down a month.
Immigration.
Yep. As I said the other day, even if the % of immigrants who can buy is very small, when the quantum of immigrants is so high the number of immigrant buyers no doubt has some influence.
So .. 20% of monitored auctions reached RV? When were these set (is it possible to add that approx. year as an additional column)?
80% not reaching RV a happy tale does not necessarily tell (depends when said property was bought and how much is loaned against it, right?).
Whoopdy doo is what I say. It’s spring, and after a decisive election result. These results are bang average. Nothing for spruikers to get excited about.
Still not post election tho is it HM ? Still not even going to have a picture until 2nd November and even then it could be yet another period of weeks of negotiation. Market looks fine where I am, plenty of SOLD stickers on houses, only a fraction even goes to auction. Its pretty obvious to me its boom time again this summer unless the new government immediately steps in and cuts immigration dramatically.
It’s very decisively a centre- right government. It’s just the finer details now.
’Boom Time’? Big call!
Zwifter, you may be a little premature, but I think over the next 2 years you will be correct. We have a problem though... when Orr starts to cut rates, this will inevitably juice the market. At some point, we are going to run out of buyers. Unafordability will turn us into Venezuela and we will then have a whole new host of problems. I'd rather common sense prevail and we chill the Eff out on the property market pumping.
Certainly nothing for anti-spruikers to get excited about... where's the crash they were expecting this year? The housing market is defying them again.
Very few mortgagee sales as well, Nifty1.
DGM are truly accomplished at one particular activity, namely, misleading and deceiving others. 🦹🏻♂️
TTP
Speaking of misleading others, what are your thoughts on price fixing Tim?
Yeah, thought so….
I wonder why there are so many criminals involved in real estate companies?
That's because the likes of ASB are hiding their bad leading books in the likes of Blackrock.
Get with the game TTP
Mortgagee sales listings on trademe are the highest I've seen in a while. Usually sits around 20 - 25, right now 50.
Languishing
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