Second busiest week of the year for residential property auctions

Property / news

More properties being offered at the latest auctions but the average sales rate remains stubbornly below 50%

11th Nov 23, 7:04am by Greg Ninness

There was a slight decline in the number of properties offered at the latest auctions, but a slight increase in the number that sold.

A total of 410 properties were offered at the residential auctions monitored by interest.co.nz over the week of 4-10 November, down from 437 the previous week.

However auction activity remains elevated and the latest results were the second busiest week so far this year. It was only the second time this year that more than 400 properties have gone under the hammer in a week.

Of the 410 properties on offer, 188 sold under the hammer, giving an overall sales rate of 46%.

The compares with 182 properties that sold the previous week with an overall sales rate of 42%.

While the number of properties being auctioned has climbed steadily since mid-June, the sales rate has been remarkably stable, hovering around the mid-40% mark over the same period.

That suggests there has been a reasonable seasonal upturn in activity, but little change in the attitude of buyers, who remain cautious.

The table below shows the district results from around the country, and details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices of those that sold, are available on our Residential Auction Results page.

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45 Comments

by Black and White | 11th Nov 23, 7:14am 1699640075

The ponzi restart begins.

Hopefully WP pours cold water on it like he will most things

by Dgm | 11th Nov 23, 7:41am 1699641689

53% unsold.. so more added to the pool...

by Nifty1 | 11th Nov 23, 8:01am 1699642900

Plenty selling after auction through conditional offers...

by Pa1nter | 11th Nov 23, 8:03am 1699642987

It's a silly debate anyway, because Auctions are currently only making up 2% of all properties sold.

Love the same spam again, and again and again. It's like being in the 90s and you've got a cassingle stuck in your car stereo so it's the only thing you can listen to.

And it's Milli Vanilli

by Pa1nter | 11th Nov 23, 7:45am 1699641909

LOL, prices going up and down doesn't define whether a ponzi is on or off.

It's not a Ponzi though. It's not even a Pyramid scheme.

More of a mischievous rhombus.

by Market Interest | 11th Nov 23, 2:14pm 1699665272

Mischievous rhombus - that's gold :) I intend to immediately begin using that in conversation.

by Qq | 11th Nov 23, 8:15am 1699643705

I live streamed about 40 auctions this week in the Rodney + North Shore region, the highly desirable homes, targeted to gen x or boomers, in good locations sold. The rest? Very little interest. This says to me that cashed up buyers are buying, but not many others.

by Pa1nter | 11th Nov 23, 8:17am 1699643878

In the US, there's more houses being sold to cash buyers than ever.

by macca | 14th Nov 23, 10:42am 1699911740

That's because most existing owners with mortgages have 2.5% 30-year loans which they have to replace with an 8% loan if they sell. Cash buyers don't have that issue.

by DTRH | 11th Nov 23, 8:41am 1699645288

More stock hitting the market in Auckland now over 12350 on trademe up around 10% over last couple of months. Why would that be maybe people are realising paying a million for a 3 bedroom rental just doesn’t add up after refinancing weekly payment go up from 950 to 1700 and can only rent out for 850.

by Pa1nter | 11th Nov 23, 8:45am 1699645524

House listing rose during Spring?

Someone stop the madness!

by DTRH | 11th Nov 23, 12:27pm 1699658827

More people buy this time of the year but stock for sale is going up. I would have thought as people refinance form 950 to 1700 weekly payments for million dollar mortgage,with higher rates many would be stress financially .

by Pa1nter | 11th Nov 23, 1:30pm 1699662601

The listings will go up, because it takes at least a couple of weeks, sometimes a month or two, for a property to sell.

The amount of mortgages in arrears is actually decreasing, not increasing.

Some people will be stressing with higher interest rates, but will be cutting back in other aspects of their lives, or earning more to make up the difference. Selling a house is usually the last resort after all other options are expended, because once you leave a market it's hard to get back.

Hope that clears it up for you.

by Amokk | 11th Nov 23, 2:06pm 1699664807

“Some people will be stressing with higher interest rates, but will be cutting back in other aspects of their lives, or earning more to make up the difference.”

I feel this is slightly disconnected from the reality that is happening right now. You can only cut back or earn so much more. Perhaps take a look on some of the FB property groups to get a real feel for what’s going on. It’s blatantly apparent MANY people blinded by a quick buck and FOMO are now regretting their choices.

by Flying high | 11th Nov 23, 2:55pm 1699667726

Would I be surprised if you were active on those pages Amokk

Perhaps one of those being crushed

by Amokk | 11th Nov 23, 2:59pm 1699667993

Not even close - a single home, mortgage-free which we live in is enough for us. If you want an accurate gage of how things are in the real world those pages beat the shit out of some of the commentary here.

by Yvil | 11th Nov 23, 4:14pm 1699672461

"those pages beat the shit out of some of the commentary here."

???

by Thats All Folks | 11th Nov 23, 4:23pm 1699673019

Oh look it’s everybody’s favourite hall monitor!

by Retired-Poppy | 11th Nov 23, 6:14pm 1699679686

Kiwis share regrets about buying their first home.

https://www.newshub.co.nz/home/money/2023/11/cost-of-living-kiwis-share…

My personal favorite "I really wanted to sell when the value shot up during the pandemic but my partner refused & insisted they'll just keep going up forever like property in China (nek minnit)".

There are of course some happier experiences in this article too.

by Zwifter | 11th Nov 23, 7:30pm 1699684227

A house I put in a cash offer for sold for just over a million and less than 18 months later the two gay guys that bought it sold it for over $1.5m at the market peak. They basically made $500K and took the money and ran. Obviously if they then rented and came back into the market recently, they would have kept most of that gain.

by Retired-Poppy | 11th Nov 23, 8:31pm 1699687897

Zwifter, why did they run?

by Flying high | 11th Nov 23, 8:34pm 1699688083

RP there are now more first home buyers than corelogic has ever recorded. They are not dying out unlike boomers and gen Xers

by Retired-Poppy | 11th Nov 23, 8:46pm 1699688819

Fantastic!

by Matt_09 | 11th Nov 23, 2:58pm 1699667883

Send them my way Amokk, always happy to negotiate with slightly distressed sellers! … only to ease their burden you understand. Great market coming up to be a cash buyer- across commercial and resi

by Pa1nter | 11th Nov 23, 5:34pm 1699677247

I feel this is slightly disconnected from the reality that is happening right now. You can only cut back or earn so much more.

Some may not accomplish it, but it's the only option. Some possibilities:

- Still low unemployment, upgrade a job

- Work more hours. Weekends and nights

- Reduce costs by co-habitating with more people, basic budgeting, etc.

- change your mortgage terms

- Liquidate other non housing assets

They're all worse options than prior, but sometimes you have to eat a bit of kaka pie, when your back is against the wall. For those who've never been really tested, it'll take some mental adjustment. That is the harsh reality.

by GetFeeling | 11th Nov 23, 5:53pm 1699678414

Facebook? Seriously?

by Amokk | 11th Nov 23, 7:33pm 1699684432

Yep seriously - if I want to know whats really happening I go to the coalface not an echo chamber........

Just a small example.

"Hello I really need some advice regarding a rental property I have and hoping you all might have some advice. I’m very new to all of this and I have a lot to learn. I have a property worth 800k and I currently rent it for $600 a week. With the rising interest rates and taxes it’s is going to cost me almost $20k a year just to keep the rates/insurance/mortgage/property manager paid. This is on top of the rent coming in. Does this sound reasonable? It just feels like so much extra to pay as I also have another mortgage to pay for the home I live in. Is it worth hanging onto this rental property or is it better off I just sell and become mortgage free in my own home with extra left over?"

"I hear you. Our IP bought July last year is killing us. We top up by $200/week. We also have Residents Society (like Body Corp( fees of just under $2kpa.Our OO isn't mortgage free either. If we sold the IP we'd be comfortable with a much smaller mortgage. We would likely lose money on the IP as its dropped in value. Is it worth paying so much for another 4 years unable to have any life while the IP maybe increases in capital value? I'm seriously doubting it."

by Pa1nter | 11th Nov 23, 7:48pm 1699685336

Yeah, cause what I've said discounts some people doing it tough, or wanting to tap out.

Enjoy Facebook.

by ryanjames | 11th Nov 23, 9:11pm 1699690310

If you can't stand the heat, get out of the kitchen. Those who can will be rewarded. This is separating the real investors from the wannabes.

by Flying high | 11th Nov 23, 9:20pm 1699690831

They say that its unfair that tenants are paying off the LL mortgage. Not in these cases

by Nzdan | 12th Nov 23, 12:33pm 1699745611

Well they are paying off the landlord's mortgage, the principal amount has not changed just the interest portion has gone up.

The landlord will likely be more motivated to jack up the rent at 12 month mark due to the $200 per week pain, so the tenant loses due to the landlord's reckless borrowing decision.

by starrider | 13th Nov 23, 11:22am 1699827770

Tell that to the family that have a household income of $110k and a $700k mortgage about to renew @ 7.5%.

Or the single mum in Auckland that owns a $1.3m house but her mortgage of $350k means that she has $40 left each week which needs to cover property maintenance, clothing, activities etc etc..

I'm picking these people will need to sell in the next 12 months. The only reason they didn't sell earlier is the alternatives are bleak.

by 1689 Baptist | 11th Nov 23, 9:22am 1699647754

Seasonal noise. That is a relatively small jump historically for this time of year.

by 1689 Baptist | 11th Nov 23, 9:23am 1699647814

Seasonal noise. That is a relatively small jump historically for this time of year.

by fortunr | 11th Nov 23, 10:09am 1699650544

The resilience of house prices in this environment of rising interest rates is surprising me. Yes, it is heavily supported by unsustainable immigration levels, but still...

by Piggy | 11th Nov 23, 10:39am 1699652398

No comment on % sold above RV so assume it is up again

by Matt_09 | 11th Nov 23, 3:01pm 1699668117

The RV has Zero relevance to the quality of house or what value it should sell for. Don’t get sucked in by that metric at all

by Flying high | 11th Nov 23, 3:15pm 1699668950

Auckland CV issued peak market. 41 prcnt above CV is extremely high

by Zwifter | 11th Nov 23, 11:07am 1699654043

Total trade me listings from my region only slowly on the increase, still down from peaks that have been seen. The market is only stable because the OCR has stopped rising and the RBNZ have pretty much already said no rises for this year and the meeting after that is way out in Feb 2024. Potentially we are in for a cracking summer weather wise and with a new government expect more positive housing news for months.

by Small Kev | 11th Nov 23, 12:14pm 1699658073

Nothing crazy by all means just market moving on like night follows day and day follows night.

by Tui12 | 11th Nov 23, 5:03pm 1699675409

Loads of flood plain properties coming onto the market now being offloaded after people have been paid out out by the council or insurance. Most being auctioned. You’d have to be insane to buy one of these.

by IT GUY | 11th Nov 23, 9:15pm 1699690539

central suburbs 111 auctions , 51 sales and only 24% above CV.... tells you all you need to know about prime AUCKLAND RE, stats do not lie especially with 111 auctions , no many are making what was considered crap money in Nov 21, we used to think 15% above CV was min offer, even for a demolish and develop......

by Rubb3rduck3y | 12th Nov 23, 3:05pm 1699754753

Put my house on market (glenfield northshore) sold in 5 days multi offer. 30k under RV could have fluffed around for a better price but heading overseas with family.

Definitely not as dead as some people on here seem to suggest.

by Nzdan | 12th Nov 23, 3:55pm 1699757752

Agree, seeing some fairly quick sales in Wairarapa. Most are circa 10% above 2020 CV, but when you look at homes.co data there's a very prominent readjustment downwards in the "this home" graph to the 2021 value. Basically unwinding the Covid pricing mania.

by starrider | 13th Nov 23, 11:26am 1699827993

Higher for longer makes me think this is going to be a 5+ year downturn/stagnant period for housing. Ireland took 15 years to sort out, and they have way less land available than NZ.