Auction room activity still crawling along at winter levels - no sign of a spring bounce yet

Not all homes sold have a CV available, so they are removed from the calculation of the % sold, but they were still included in the no. sold.

Yeah - funny that. It's highly unlikely the masses will borrow up large when security of employment are becoming front and center. Inventory still rising, sales volumes are stubbornly poor and vendor denial is still apparent. 

The housing market is perfectly fine, places that are selling down here are going for the new lower RV. Once the new RV's come out in Auckland you will see a reality check at the auctions with more selling at the lower RV.

Definitely, we’re in for a shit ride for a fair wee while yet…can we ride it out and try to get some stability in a few years after a grunty correction…or, is it printers on full speed with lending rates/restrictions getting slashed…it will be bloody interesting to see what fork in the road NZ Inc chooses 

Yes global yield inversions are just starting to normalise so in my view things are about to get much worse over the next 12-24 months than what we’ve just experienced the past 12-24 months. 

 

It is possible that the falls in house prices so far is just the warmup with the main event still ahead of us. 

The "bottom" is when interest rates stop coming down and the easing cycle is over.  That coincides with the point where the economy finally starts to look like its turning the corner and people feel confident to go out and spend money again.

The first two that sold both miss the 'houses double every 10 years' nonsense. 1.7% and 5.5%. (Needs to 7.2% / year to double in 10 years.) The 2nd looks like it has had reno money spent recently, hence 5.5%. (Reno money needs to be added to the last sale price which I haven't done.)

The third, had it sold for the $725k bid, would also fail at the 2012 sale price ... Just 6.1% and about 12 years ago. But the last sale was in 2019 and would be even worse, just 3.6%. If they wanted the 2019 price with a 7.2% ROI then the offer would be $888k and there is lots of better places listed with prices for that sort of money.

My read? The first two sellers are being realistic. The 3rd is dreaming.

All 3 are charming. Congrats to the sellers and buyers.

Those are pretty good prices.  270kNZD  sounds great for a house with 3 double bedrooms, a large kitchen, a basement, etc. in a town as large as Dunedin, even if it needs renovating, etc.



 

Really? Cool. But this probably got a higher click count ...

SBS secretly cuts six-month interest rate to 5.99%

It’s an advertisement. Supplied by Colliers.