October is already the busiest month so far this year for residential auctions

Property / news

Just under half the residential properties being auctioned are selling under the hammer

28th Oct 23, 6:00am by Greg Ninness

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

by Flying high | 28th Oct 23, 6:27am 1698427643

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?

by General Comment | 28th Oct 23, 6:49am 1698428957

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.

by tothepoint | 28th Oct 23, 8:38am 1698435492

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

by WellingtonInvestor | 28th Oct 23, 2:30pm 1698456619

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

by starrider | 30th Oct 23, 9:44am 1698612265

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

by Yvil | 28th Oct 23, 8:47am 1698436066

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.

by RealAgent | 28th Oct 23, 6:35am 1698428113

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.

by 1689 Baptist | 28th Oct 23, 6:47am 1698428827

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.

by Zachary Smith | 28th Oct 23, 7:22am 1698430933

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.

by IT GUY | 28th Oct 23, 7:47am 1698432447

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....

by RealAgent | 28th Oct 23, 8:46am 1698435971

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.

by Yvil | 28th Oct 23, 8:54am 1698436498

Given your comments, it's very unlikely that you're a RE agent.

by Nifty1 | 28th Oct 23, 8:59am 1698436789

I'd say an RE brand doesn't look very good if houses aren't selling? Not much of a marketing strategy there.

by RealAgent | 28th Oct 23, 8:47am 1698436022

1689 Baptist, You are 100% correct.

by IT GUY | 28th Oct 23, 7:43am 1698432224

What was the clearance rate in Nov 2021?

by Retired-Poppy | 28th Oct 23, 8:08am 1698433730

101%

We were fast running out of houses and it was the best time to buy.

by IT GUY | 28th Oct 23, 9:12pm 1698480746

I thought yesterday was the best day to buy????

by Flying high | 29th Oct 23, 6:58am 1698515914

I won't be surprised if you bought a property yesterday

by IT GUY | 29th Oct 23, 4:27pm 1698550036

No am trying to sub divide tomorrow.... why buy when you can create!

by starrider | 30th Oct 23, 9:50am 1698612634

Be quick!

by Nifty1 | 28th Oct 23, 8:12am 1698433943

Steady as she goes... another month of HPI increase likely. Didn't some say dead cat bounce?

by Retired-Poppy | 28th Oct 23, 8:15am 1698434124

Yup, pick me - pick me! I can claim ownership to that!

by tothepoint | 28th Oct 23, 1:42pm 1698453735

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

by Retired-Poppy | 28th Oct 23, 3:38pm 1698460737

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.....

by starrider | 30th Oct 23, 9:54am 1698612857

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.

Commerce Commission - Property Brokers Manawatu and director fined $1.5m in price fixing case (comcom.govt.nz)

by HouseMouse | 28th Oct 23, 10:07am 1698440859

Sales picking up for you on the Shore?

by Nifty1 | 28th Oct 23, 11:06am 1698444373

Town house rentals picking up for you on Trademe Housemouse?

by Toye | 29th Oct 23, 10:47am 1698529669

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.

by Eschaton | 28th Oct 23, 8:26am 1698434801

Immigration.

by HouseMouse | 28th Oct 23, 10:09am 1698440972

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.

by Chaosinflesh | 28th Oct 23, 10:04am 1698440655

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?).

by HouseMouse | 28th Oct 23, 10:11am 1698441101

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.

by Zwifter | 28th Oct 23, 10:17am 1698441473

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.

by HouseMouse | 28th Oct 23, 10:22am 1698441760

It’s very decisively a centre- right government. It’s just the finer details now.

’Boom Time’? Big call!

by tomjones_04 | 28th Oct 23, 11:18am 1698445119

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.

by Nifty1 | 28th Oct 23, 11:19am 1698445161

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.

by tothepoint | 28th Oct 23, 1:23pm 1698452588

Very few mortgagee sales as well, Nifty1.

DGM are truly accomplished at one particular activity, namely, misleading and deceiving others. 🦹🏻‍♂️

TTP

by Thats All Folks | 28th Oct 23, 1:33pm 1698453239

Speaking of misleading others, what are your thoughts on price fixing Tim?

Yeah, thought so….

by starrider | 30th Oct 23, 9:57am 1698613045

I wonder why there are so many criminals involved in real estate companies?

Commerce Commission - Property Brokers Manawatu and director fined $1.5m in price fixing case (comcom.govt.nz)

by Black and White | 28th Oct 23, 3:05pm 1698458719

That's because the likes of ASB are hiding their bad leading books in the likes of Blackrock.

Get with the game TTP

by Toye | 29th Oct 23, 10:45am 1698529551

Mortgagee sales listings on trademe are the highest I've seen in a while. Usually sits around 20 - 25, right now 50.

by Dgm | 28th Oct 23, 3:55pm 1698461715

Languishing