Sales rate at the latest residential property auctions dipped to 28%

Property / news

Auction activity easing back as the housing market heads deeper into autumn

16th Apr 24, 1:21pm by Greg Ninness

Photo: Laslovarga, Wikimedia

Auction activity jumped back up last week but the sales rate appears to be on the slide.

There were 472 residential properties offered at the auctions monitored by interest.co.nz last week (6-12 April), up from 303 in the week immediately after Easter, but down from more than 500 a week in the weeks leading up to Easter.

It appears auction activity is easing its way into the lower volumes of autumn.

Sales also appear to be a bit softer, with 132 of the properties auctioned selling under the hammer last week, giving an overall sales rate of 28%.

The sales rate has been at 28% to 30% for the last three weeks, after easing back from around a third over the six weeks prior to that.

Prices look a bit weaker too, with 32% of the properties that sold under the hammer last week achieving prices equal to or greater than their rating valuations, after averaging about 40% over the previous few weeks.

All in all, the the latest auction results suggest the market is weakening slightly as it comes off its summer highs and heads into the traditionally slower autumn months.

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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48 Comments

by Retired-Poppy | 16th Apr 24, 2:08pm 1713233317

"sales rate appears to be on the slide"

Yes, much like the trusted HPI. It's highly unlikely the "floor" was August to October" as inventory continues to pile on. It will be interesting to see what effect the Brightline tweak has on the already bloated inventory levels. Lets see how many white knuckled "investors" jump.

by KBKIWI | 16th Apr 24, 2:38pm 1713235128

Don’t worry I’m sure things will pick up now that the government is laying off thousands of people while also slashing spending on goods & services.

by Eschaton | 17th Apr 24, 7:34am 1713296045

Anti- counter cyclical spending.

by Frank Sobotka | 16th Apr 24, 6:54pm 1713250450

They are only an “investor” on the way up.

On the way down they are just hardworking mum and dad taxpayers just trying to get ahead and putting rooves over peoples heads!

by starrider | 17th Apr 24, 11:38am 1713310717

The RBNZ are maintaining the course of the "soft landing™" what they failed to note, was the timeframe of a "soft landing™" given that a hard crash happens in a short period of 6 to 18 months, then takes 5 years to recover, I suspect that they don't know if the soft landing will be over a 5 year timeframe or a 10 year+ timeframe(see Ireland).

Obviously all the bag holders are still in denial and can't admit the very real possibility of a 10 year stagnation.

by IT GUY | 16th Apr 24, 1:41pm 1713231711

Just another nail in the coffin

I remember during the big nuts run up in 2020/2021 we had a month where the average price achieved jumped up around 4.8%, we are about to see a few solid 2s 3s to the down side.

I think it will shake out about 5k (brightline) over the next 12 months, not massive BUT still adding to the overhang of listings.

Bong said Debedee

Oh Dear said Dougal

by Hastings | 16th Apr 24, 3:51pm 1713239512

Love the Magic Roundabout…although I thought it was Zebedee?

by Averageman | 16th Apr 24, 1:41pm 1713231676

Already low turnover, and heading even lower into the winter low turnover window. Agent land will be on food stamps at this rate.

by IT GUY | 16th Apr 24, 1:42pm 1713231747

Form an orderly queue behind the police officer

by malamah | 16th Apr 24, 1:54pm 1713232467

"Your Jetstar flight to SYD airport has been delayed."

by K.W. | 16th Apr 24, 5:04pm 1713243840

Lucky so many New Zealanders have second passports these days. Mail the keys to the bank, leave the car in the long term parking lot at the airport, jump on a plane and suddenly all your financial worries are gone.

by CN - new | 16th Apr 24, 6:11pm 1713247892

"Lucky so many New Zealanders have second passports these days. Mail the keys to the bank, leave the car in the long term parking lot at the airport, jump on a plane and suddenly all your financial worries are gone."

Just checking that you know that under the terms and conditions of mortgage contracts and current laws in NZ, that is not a valid LEGAL solution?

by interesting1234 | 17th Apr 24, 8:12am 1713298371

Try telling that to the many student loan defaulters who left and will never come back but for the odd holiday.

by Frank Sobotka | 16th Apr 24, 6:56pm 1713250609

Had to laugh at the article on one woof with the “won’t someone please think of the agents”. Talking about not being cruel and changing agents, and all the sacrifices agents make to bring us a bloated housing Ponzi.

#jesuisrealestateagent

by Dgm | 16th Apr 24, 1:59pm 1713232740

More data emphasizing a deteriorating market

by Chairman Moa | 16th Apr 24, 2:07pm 1713233223

Few TTP's style inspiration comments:

"Declining housing market is nothing more than the shadow of great opportunity"

"Declining housing market can become opportunities when the right people come with offers"

"Declining housing market is like sunrises. If you wait too long, you miss them or might get burned"

by Retired-Poppy | 16th Apr 24, 3:58pm 1713239884

Speaking of inspirational gems...

by tothepoint | 3rd Sep 21, 8:39pm

"NZ house prices are increasing - on a sustainable long-term trajectory"

Yes, I personally never called the arrival of COVID and the money pumps ahead of time but now the highly anticipated hangover is here, like other posters, I have been calling 2024 the year of opportunity for FHB's. Their deposits will go far further than they did in 2020/21. If they price it right, the financially stretched will be relieved there is somebody to sell too.

by IT GUY | 16th Apr 24, 3:12pm 1713237146

Yes its funny how shorts are hated, but they provide the liquidity at the bottom of the market

by Rampart | 16th Apr 24, 5:18pm 1713244718

Their deposits will go further but their weekly wages won’t. I’m not sure how young families can service 1+million dollar mortgages @ 7%

by HouseMouse | 16th Apr 24, 5:30pm 1713245405

Nor even 700k ones

by huttman | 16th Apr 24, 2:31pm 1713234680

So, China just published its Q1 economic statistic data. the Q1 annual CPI is 0%, and residential investment is -9.5%.

China will need to print lots of money to go forward!

by Retired-Poppy | 16th Apr 24, 3:08pm 1713236888

Remember the heady days when Chinese viewed our real estate as dirt cheap and shopped accordingly? Locals got quite antsy.

As things progressively crumble in China, is there a case for them to try liquidating the now highly illiquid. A perfect storm in the making perhaps. Lets hope not as it would be a dire scenario.

by IT GUY | 16th Apr 24, 3:13pm 1713237232

No as they want to keep their money outside the red curtain. Most is owned in trusts and no mortgage so the trust deed is never held by a bank. Transfer can be achieved by slight of hand.

by K.W. | 16th Apr 24, 5:11pm 1713244307

https://www.afr.com/world/asia/chinese-forced-to-sell-overseas-properti…

Middle-class Chinese are increasingly selling their properties in Australia and other countries, with some forced to offload their investments at below-market rates, as high interest rates and a sputtering Chinese economy bite, overseas data shows.

China’s biggest property portal, Juwai IQI, says the number of people selling overseas properties has doubled in the past 12 months.

Many had children studying at universities in Australia which fuelled the buying boom of apartments during visits to see their offspring. Others were cashed-up investors looking to make a profit in the future.

But data and anecdotal evidence suggest that trend is reversing, not only because they can no longer afford the mortgage repayments but also because of China’s strict capital controls on taking money out of the country to make up the difference.

Even if some can get the cash out, the slowing economy and a property crisis inside China mean many of the country’s middle class no longer have spare money to invest.

by Thats All Folks | 16th Apr 24, 5:47pm 1713246464

Yeah I don’t really have any confidence in China or its continued influence on the NZ housing market.

China had its chance at becoming a challenger to the US. IMHO, that is now just a pipe dream and their economy is cooked.

by Crazy Horse | 16th Apr 24, 2:45pm 1713235516

Here are the FACTS ......

In Auckland out of 327 properties, only 22 properties sold at or above CV .....or 6.7%

Truly Marvellous !!!

by huttman | 16th Apr 24, 2:59pm 1713236374

but the CV was done 2021, right on the peak.

by Zwifter | 17th Apr 24, 9:11am 1713301897

Correct, the number now selling above RV has taken a huge jump now the latest RV's came out a week ago down here. My place dropped $50K on paper.

by IT GUY | 16th Apr 24, 3:34pm 1713238458

Its funny how wingman lives next to all 22

like many I got 16% over cv at the peak

fortunes have been lost already and this is not the bottom

by Retired-Poppy | 16th Apr 24, 4:05pm 1713240354

With Harvey in his rear whispering "they'll be up 10% by years end"

by ChrisOfNoFame | 16th Apr 24, 2:56pm 1713236192

"Prices look a bit weaker too ..."

Sure do. And a few quite sad ones from today's auctions for next week's numbers.

by Te Kooti | 16th Apr 24, 3:45pm 1713239125

It's not looking good brav, it's not looking good.

by IT GUY | 16th Apr 24, 4:15pm 1713240909

Its quiet out there..... too quiet

by 1689 Baptist | 16th Apr 24, 3:47pm 1713239251

One third of the four Waikato houses sold went for above CV.

Am I the only one who is troubled by this?

by Retired-Poppy | 16th Apr 24, 4:00pm 1713240021

Yes.

by Antz | 16th Apr 24, 5:04pm 1713243898

Only 3 had RVs, 1 didn't, so nothing to compare to.

by Black and White | 16th Apr 24, 3:50pm 1713239400

This is going to be an ugly winter and the next two years.

This government is really taking us back to the 1970 and the muldoon days.

by IT GUY | 16th Apr 24, 6:54pm 1713250483

Really they caused all this in 6 months, pull the other one.....

by Black and White | 16th Apr 24, 10:33pm 1713263593

No they caused it from 2008 with your banker mate Mr John Wee 3% of the Market.

Let's run a Ponzi with Laundered money that's when the down fall of this country started.

Now we have a major mess to clean up with know laundered or printed money.

Lucky we have the clever National party to sort this out.

by fortunr | 16th Apr 24, 3:55pm 1713239746

Without such strong immigration, the housing market would have already collapsed. If these strong immigration levels continue, it is going to be an orderly retreat, with some further moderate decreases in nominal terms.

by IT GUY | 16th Apr 24, 3:59pm 1713239983

disagree as investers need 25-30% falls for numbers to work here

by FOTC | 16th Apr 24, 5:04pm 1713243862

Winter is coming

by HouseMouse | 16th Apr 24, 5:36pm 1713245764

Surge of listings where I live, with almost no open home interest as far as I can see. Also a surge of garage sales in the community. Many people are really starting to hurt.

It’s going to be a long winter….

I feel really sorry for the people who bought the spruiker bullshit.

one of the garage sales had an old worn copy of ‘Rich Dad, Poor Dad’. Sadly ironic

by Te Kooti | 16th Apr 24, 6:25pm 1713248704

Well, at least he gave it a go I guess....

by Thats All Folks | 16th Apr 24, 6:28pm 1713248885

Damn, that’s bleak HM.

One of the garage sales had an old worn copy of ‘Rich Dad, Poor Dad

As important as this reset is, it won’t be fun for many…

by NZGecko | 17th Apr 24, 7:29am 1713295780

So with nominal declines plus inflation adjusted losses, have Auckland now down nearly 45% since 2021.

As we are set now, for another 10 to 20% nominal losses, to the end of 2025.

We are on track to well and truly eclipse the massive housing market losses seen in little old Ireland, but at a faster rate here in NZ.

GOLD medal to NZ!

These losss for the over leveraged DDDebt junkies, will be eyewatering and a mountain climb to recover from, if your over 40.

The REA debt drug pushers are total TTP scrotes and should be gone after by our "asleep at the wheel" regulators!!!

Best to liquidate, before your are forced to. NZ Banks are very worried.

by Black and White | 17th Apr 24, 8:34am 1713299664

NZ banks should be very worried they created this mess and made the most money out of it.

A major hair cut to come for them couldn't happen to a nicer bunch and their realestate mates.

Its been the only game in town sense the GFC runing a housings Ponzi is not business this will be very ugly NZ.

by RickStrauss | 17th Apr 24, 3:08pm 1713323336

They will be knocking on the taxpayer's door for handouts, don't worry. Revolving doors with politics will pay dividends, and we don't have a government that looks likely to stand up for the taxpayer.