More than twice as many properties being auctioned compared to this time last year

Property / news

Plenty of homes on offer in the auction rooms but the sales rate is stuck at one-third

11th Mar 24, 11:44am by Greg Ninness

Exactly a third of the properties offered at the auctions monitored by interest.co.nz last week were sold under the hammer.

Interest.co.nz monitored the auctions of 573 residential properties around the country last week (2-8 March). Of those 190 were sold under that hammer, giving an overall sales rate of 33%.

Although the 573 properties auctioned was slightly down from the 619 offered the previous week, the market is well into its peak selling season for the year. And the number of properties being auctioned is running at more than twice the level of this time last year, so there is plenty of activity in the auction rooms.

However putting a property under the hammer is one thing and selling under the hammer is another, and the overall sales rate has been between 31% and 34% for the last three weeks in a row, suggesting the sales rate has found its level at about a third.

Interestingly, the overall sales rate in the Auckland Region, which dominates auction activity, has been consistently running at around a third for the last month.

The table below shows the results by district for all of the auctions monitored by interest.co.nz last week.

Details of the individual properties auctioned, including the prices achieved for those that sold, are available on our Residential Auction Results page.

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27 Comments

by Three Veg | 11th Mar 24, 12:02pm 1710111766

The obsession with auctions is really slowing down the price discovery process

its a shame, vendors and buyers alike would benefit from seeing where we stand atm

by Flying high | 11th Mar 24, 12:16pm 1710112584

I actually thought it is more open than other methods and speeds up price discovery when the gavel comes down. Its exciting being at a lively auction or can watch through the small screen

by JustAnOpinion | 11th Mar 24, 1:58pm 1710118732

They are a useful revenue stream for the REAs they are not going to go away in a hurry.

by Averageman | 11th Mar 24, 12:03pm 1710111796

Auctions are geared around a boom market or trying to force a sale for commission clipping. Market is not a boom, its a crash back to financial reality. Why punters are letting themselves get talked into is a bit weird

by AN Other | 11th Mar 24, 1:06pm 1710115600

Because they are conned into it by professional sale people and don't know they could say no.

by starrider | 11th Mar 24, 12:26pm 1710113203

So many commentators conflate high immigration numbers with ever higher home prices.

The reality is - cheap debt has dried up so all these new immigrants can only afford $x. Vendors are still lusting after $xxx. But the high mortgage stress test levels and high cost of living suggests that home prices still have a significant period of stagnation/slipping ahead.

In addition, wage increases have been around 5% whereas insurance premiums have increased 20% to 30%. Rates are up 5% to 10%. Food is up 10%.

by JimboJones | 11th Mar 24, 12:32pm 1710113526

Conflate or spruik?

by interesting1234 | 11th Mar 24, 12:55pm 1710114958

Precisely. Even for those who can obtain a mortgage, the ability to sustain it has been very limited through increased costs all round.

by huttman | 11th Mar 24, 12:39pm 1710113978

the change in volume usually indicates a change in the market trend.

it has been in the downward trend.

by OldSkoolEconomics | 11th Mar 24, 1:11pm 1710115912

buying when prices are dropping is an interesting strategy. if you think that prices have bottomed out and interest rates have peaked AND you have access to the money and you can service the debt... then maybe good to get in and find a bargain... but the change of government and global events are leaving one a little unsettled for now.

In NZ there is a second issue as to how long Luxon and Co will last and what happens if Labour are back in for the next election - i cant believe how badly National and co are reading the room at the moment. i am keen for business focussed policies... but they are regressive almost everywhere else -> public transport and cycling, EVs, smoking, oil and gas exploration, interest deductability..... they may go ahead with co-governence for water anyway and they are implementing new rules to be able to make planning decisions without due process... the list seems endless and shockingly donor driven.

I reckon at least a 50% chance the coalition will collapse before the next election. I never thought i would say it but am actually starting to prefer labours ineptitude around the economy vs Nationals ineptitude around everything else and the damage they will inflict on the next generation (and other business people i know are of a similar mindset). so if national goes - then we face another Uturn in policy and impact on any investment decisions made under nats.... including an impact on house purchase decisions - dangerous times.

by K.W. | 11th Mar 24, 1:21pm 1710116516

None of those things were funded by Labour beyond this year - that's why they are being canned. There is no money to be found anywhere to keep them going. Thinking that Labour with its borrow and spend, and promise of things that never get delivered, or never get funded from existing budgets so they have to borrow even more, is better than National cleaning up the books, is how this country got in such a mess in the first place.

by JimboJones | 11th Mar 24, 1:42pm 1710117721

"There is no money to be found anywhere" - but $3 billion in PAYE tax cuts has been found as well as whatever the property investor tax cuts will cost.

by RickStrauss | 11th Mar 24, 1:46pm 1710117980

Looting for landlords, in the end. Multi-million dollar personal investment conflicts of interest playing a role?

by OldSkoolEconomics | 11th Mar 24, 1:54pm 1710118457

Money is simply being redirected to Nationals donor projects being the big road builders, tobacco companies, petrochemical companies, possibly the traditional car manufacturers, landlords, developers, select corporates and likely the banks.... all of which flies in the face of what we should be doing to grow NZ and provide a future for future generations

I am far from a Labour fan, and very business and tech oriented - and would far prefer having to live with economic constraints from their financial ineptitude... resulting in doing less of the right things.... to nats doing all of the wrong things but with initial financial restraint (which will slip anyway as per the tories in the uk as they get even more corrupt)

i dont see much of any benefit for the middle class either...

by JimboJones | 11th Mar 24, 2:00pm 1710118826

Apparently Seymour rides a bike now, but he still wants every cent of the transport budget spent on roads for some reason.

by General Comment | 11th Mar 24, 2:52pm 1710121943

Apparently Seymour crashes a bike now

FTFY. https://www.nzherald.co.nz/nz/politics/act-leader-david-seymour-crashes…

by wingman | 15th Mar 24, 11:59am 1710457153

The Labour Govt squandered billions on useless, worthless projects, and was determined to pillory the farming and tourism industries. Meanwhile handing out gobs of money to anyone who wanted it.

How was this country going to pay its way? Growing marijuana?

by danicriss | 11th Mar 24, 1:25pm 1710116709

i am keen for business focussed policies...

It's a myth National are business focussed

They are indeed 'select business owners' focussed. There's hope more and more people will be able to tell the difference

by OldSkoolEconomics | 11th Mar 24, 1:47pm 1710118027

Surely the last couple of months has highlighted it to all - if not then by the end of next year everyone will be affected negatively and begging to go back.

by ChrisOfNoFame | 11th Mar 24, 1:15pm 1710116126

Agreed.

I did expect a small rise in volumes though given the hard selling that's been going on.

But maybe the economy is in fact worse than I thought?

We'll know come Thursday, Mar 21st when GDP for Q4 (end of December) 2023 will be released ... Already almost 3 months out of date.

by Yvil | 11th Mar 24, 2:18pm 1710119918

by huttman | 11th Mar 24, 12:39pm

the change in volume usually indicates a change in the market trend.

it has been in the downward trend.

Please read the article before making up stuff:

The number of properties being auctioned is running at more than twice the level of this time last year, so there is plenty of activity in the auction rooms.

by huttman | 11th Mar 24, 2:28pm 1710120493

Please note that's my own observation.

by Yvil | 11th Mar 24, 3:05pm 1710122738

Noted, you think your own observation is superior to Interest's data.

by huttman | 12th Mar 24, 8:53am 1710186804

No, I just believe some people are stupid.

by Crazy Horse | 11th Mar 24, 3:37pm 1710124665

Auckland Region….. 405 total in the auction …..133 sold and of those 133 sold only 40 sales were equal or great than their rating valuation.

So you have in the Auckland region a 10% chance of selling your property at RV or above ……then you take the RE agents fees, auction fees etc and a couple more sell below RV ........ GO FOR GOLD BUYERS , as TA & AC et al have always said "Buy today, it will be more expensive tomorrow" !

And do I have a great deal out back for you !! haahahaha

by Dale Smith | 11th Mar 24, 2:45pm 1710121503

The growth in the use of auctions in NZ mirrored the increase in restrictive land use and housing policies, compact city ideology, etc. ie where supply is less than demand.

This is because auctions work best when there are at least two bidders for the one property ie supply is less than demand.

Prior circa 1994, almost everything was sold by a general or exclusive listing.

Although of course they could come back more, on one of the ways they were originally used for, IE as a way of disposing of mortgagee sales.

by Uh Oh | 11th Mar 24, 3:47pm 1710125267

Of course.... this years not an election year.. pretty obvious that volumes would increase with less political uncertainty