Auction activity continues to pick up as spring arrives

Property / news

More properties on offer and the sales rate seems to be settling around 40% for spring

28th Sep 24, 6:00am by Greg Ninness

Spring continues to make its presence felt in the auction rooms with a significant increase in the number of properties being offered for the second week in a row.

Intrerest.co.nz monitored the auctions of 356 residential properties over the week of 21-27 September, up from 320 the previous week and 230 the week before that.

Of the 356 properties on offer at the latest auctions, 141 sold under the hammer, giving an overall sales rate of 40%.

The sales rate has been between 40% and 43% for the last three weeks, suggesting it could be settling around that level for the spring selling season.

That's a reasonable improvement on the sales rate over the winter months when it was generally around 30-33%.

The spring pickup has begun a little earlier this year, with auction numbers not hitting this level until mid-October last year. However, the sales rate was higher at this time last year when it was was generally just under 50%.

Overall, auction activity seems to be following its usual seasonal pattern so far, give or take a week or two.

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.

The comment stream on this story is now closed.

You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

70 Comments

by Cote d'Azur | 28th Sep 24, 7:13am 1727464433

Still 4 months of 2024 to run.

Auckland Central could get close to 10% increase on the year. (Up 2% in August)

Then 10%+ the next few years.

DTIs will temper the runaway 30%+ pa increases of recent years which is a good thing.

🥂

by safeashouses | 28th Sep 24, 7:38am 1727465898

@cote d Azur you fast becoming one of my favourites on here / wingman zwifter/ iceman/ Cote/ painter - now i am forgetting some one:)

by tomjones_04 | 28th Sep 24, 7:42am 1727466126

A spruiker fan boy. I'm sure if you ask them nicely, they'll send you a signed Tshirt and a mug.

by safeashouses | 28th Sep 24, 7:44am 1727466275

@tomjones - hahah very funny comment - look its hard to find friends here - I like you to its just my feet is taped to the property bike - its been a hard few years

by Iceman | 28th Sep 24, 8:29am 1727468965

Triggered.

by Smudge02 | 28th Sep 24, 7:40am 1727466048

DTIs will temper the runaway 30%+ pa increases of recent years which is a good thing.

Such compassion.

by Zwifter | 28th Sep 24, 2:00pm 1727488851

I'm still picking 3 to 4% annual gains for Tauranga this year, still a few months to go and the rates drop may have come just in time.

by two_pair | 30th Sep 24, 6:23am 1727630623

Picking or hoping?

by ghytresd | 1st Oct 24, 9:30am 1727728205

I'm tracking the Tauranga stock and have noticed a jump the last week. Seeing some familiar properties returning from earlier in the year too.

by NZGecko | 28th Sep 24, 11:33am 1727480023

The most anaemic Spring flush of sales since the Great Depression. Let's just celebrate the small things.......the spring flowers smell good!!

Meanwhile, The crash has only poked its tip in, so far.

Yes without question, we have had the biggest house price crash since the 1970s. Currently down -30 to -45% in REAL terms.

The crash has had maybe just 50%, of its wicked, yet well required, way.

The pain and squealing of the spruikers here and on the other property spruikuvester pages is palpable.

Many leveraged are hanging on by their cracked fingernails and know their financial end is nigh, all by gambling big on already excessively priced NZ housing. When they leveraged up, entered, then chanted to the revered Ponzi demigods, please give me "one more spin"......

Banks, Lawyers, Real Estate agents just love the useful idiot Ponzi punters, these Vampires clip the tickets on the entry......and don't care, when the punters go belly up.

The ticket is clipped and the Vampire has their fill, lips licked, then onto the next Ponzi enamored.

IT IS A TOTAL PONZI, AND THE LAST ENTRANTS BEEÑ HAD!

Current leveraged, gambling bagholders, are done for.

Home owners and households with diversified investments will be fine......helped especially, if they keep their day jobs.

by safeashouses | 28th Sep 24, 7:52am 1727466767

@Gecko don;t agree however its hard to argue against such a good articulated comment - all the best -

by NZGecko | 28th Sep 24, 8:28am 1727468939

All good SAH.

I see your one of the good sort LL and possibly not gambling and levered up past your gills.

I see many of the property Gamblers here, who shut-out aspiring FHBs, are completely and obviously, just Winging It.

Much like a bellicose Icarus, laughing at the sun's rays.

- Being unaware of a perilous predicament and only relying on a greater fool, saving their punt.

by safeashouses | 28th Sep 24, 9:11am 1727471489

@Gecko well thank to be honest I am struggling big time - my portfolio is levereged of debt of about 60% which use to be manageable - however that is now a massive loss every year and depretiating assets for any aspiring property investor i would say make sure you not leveraged more than 50% because when govts change you will get nailed - however onwards and upward. If interest wholesale comes back to 5.5% investors will be able to breath again however negative cashflow.

by Snow | 28th Sep 24, 1:43pm 1727487812

I'm guessing you were and still are negatively geared? What is/was your intention with your investment properties? Try and get positive cashflow as a passive income stream or purely capital gains?

by safeashouses | 28th Sep 24, 7:03pm 1727506998

@snow to be honest about 4 years ago i was cash flow positive - and had capital gain at the moment the cash flow is negative -83k due to govt changes and high interest also my assets have depretiated however since december it seems the deprectiation flow has stopped. It is almost impossible to have positive cash flow at the moment - so yea I am waiting for the capital gains, as they say cashflow opens the door but capital gains smash the door down (neither is happening at the moment) However if you get good advice and you ever think of entering the game - the rewards are there - by definitian i am a spruiker here but i am not stupid there is money to be made just go at it a bit slower than I did - keep your debt to Capital gains at 50% and you should be able to weather a storm - and don't get divorced, the divorce is painful enough but paying someone else mortgage as well is really difficult (rightly or wrongly) and puts you right back on toast and beans.

by two_pair | 30th Sep 24, 6:48am 1727632085

That sounds painful. For any thinking to enter into property investing cashflow must come first. Capital gains should be a bonus, not a strategy. One can remain cash flow positive by focusing on yield and paying down loans when interest rates are low

by sgtshortcut | 28th Sep 24, 8:07am 1727467640

A modern day Shakespeare of the DGM world NZG, the artistic tapestry of your comments are always first class 👌

House prices have definitely shit the bed alright, I reckon you’ve got about another solid 6, maybe 9 months to enjoy poking holes in the spruikers before things might start to change…you will have a few years to sing about “real” losses though as it’ll be a long time before prices “catch up”…enjoy being the sand in their undies while you can 😂

by NZGecko | 28th Sep 24, 11:22am 1727479366

Well thanks, we all talk within and from our experiences, both good and bad. The more it is well expressed, the more it is heard and understood.

Anyway, not sure I should be happy with being the serial-chaffer of others leveraged butt-cracks. It may just be the dusty and sandy Debt-Sherriffs badge, an alert Gecko, has to bear.

- I'm more the happy town crier, of the bleeding obvious.

I hope the reddened buttpain, causes a pause in the wanton Debt stacking obsessions.

Yes Homes will take years to recover to 2021 insanity levels.......mine included. Not a problem for them to revert to 2012 or 2015 prices for a while.

- It will take somewhere between 5 and 20 years for a significant recovery imho, unless the pending deeper NZ/World recession gets more "lubed up" on the slippery slide we have all entered together, then decades like Japan, could be our course.....

https://fred.stlouisfed.org/series/QJPN628BIS

Next, stage left, a prodigal BlackSwan arrives.........that will then be seen as obvious, as is the way of the mischievous Dark Swans.

I can think of many possibilities. As do others, that is a prime reason for the massive market swing towards the Gold/Silver physical/stocks. A 5000 year old, known store of financial security and safety, is hard to top.

by Yvil | 28th Sep 24, 7:54pm 1727510057

NZG "The pain and squealing of the spruikers here and on the other property spruikuvester pages is palpable."

SGT "…enjoy being the sand in their undies while you can 😂"

Strange how some people are continuously more focused about others, rather than use this site to make better financial decisions for themselves.

by tothepoint | 28th Sep 24, 3:15pm 1727493302

Certain people here have become rather disaffected.......

TTP

by two_pair | 30th Sep 24, 6:28am 1727630930

I think you and many on here overestimate how leveraged investors are. Yes there are some naive speculators out there that are heavily negatively geared, but most have a better understanding of risk and go into investing with their eyes open

by ghytresd | 1st Oct 24, 9:40am 1727728821

I posit that most don't give all that much thought to it and follow the lead of those that they perceive to know what they are doing.

by Houses Overpriced | 28th Sep 24, 7:47am 1727466420

Just pathetic, if spring can't boost sales, you know it's a dead market

by NZGecko | 28th Sep 24, 7:53am 1727466817

It's toast. BURNT.

Blackend, charred and only reminiscent of the 1930s.......

by wingman | 28th Sep 24, 8:09am 1727467789

Recessions don't last forever, the average in NZ is about 4 quarters.

Those with mortgages can look forward to what is likely to be a .5% interest rate reduction shortly. Got the champagne chilling?

by NZGecko | 28th Sep 24, 8:30am 1727469001

All the best with Winging it, Winger:)

by wingman | 28th Sep 24, 9:53am 1727473995

No one ever got rich sitting on the sidelines, people get rich taking risks.

by Independent_Observer | 28th Sep 24, 10:18am 1727475491

People also lose it all by taking risks (at the wrong times with leverage).

by IT GUY | 28th Sep 24, 10:59am 1727477983

Your biggest risk is ignoring over asset classes winger , everyone already is long property, it’s late in the game now

by NZGecko | 28th Sep 24, 12:13pm 1727482424

Yes tens of thousands of stale property Bulls within NZ now, many painfully bereft of fingers, due to the 3rd degree financial burns.

-As rancid as the old Horotui offal pits.....

These stale Bulls are waiting at the gate to exit, as this forth or fifth "market Bottom" is shown to be a mirage and really the hangman's hidden trapdoor, the market will see new lows late 2024 through to 2026.

by wingman | 28th Sep 24, 1:52pm 1727488328

I've owned heaps of properties.

I'm sleeping like a log. When a market bottom becomes obvious, it's too late, everyone and his dog will be out there scouting around looking for bargains.

by johnkerikeri | 29th Sep 24, 11:08pm 1727604515

Or poor.....

by johnkerikeri | 29th Sep 24, 11:13pm 1727604800

Buy lotto tickets then.....

by bw | 28th Sep 24, 8:43am 1727469830

Everyone is going to print Debt to try to alleviate their domestic economic problems. Everyone. China. The USA. The UK. You name it. They all will, as they did 50 years ago. The result? Mortgage rates went to +20%. I hope we are ready for that.

The difference to last time? The property buying/owing cohort was just getting started, and the 30% pay rises they got allowed them to service the modest Debts they had. Today it's the opposite. That same property owning cohort has aged, and they can't get pay rises to supplement higher mortgage rates. All they can do is sell what they have - if they can find a buyer.

by Yvil | 28th Sep 24, 7:53pm 1727510014

There is another cycle to go before interest rates rise again bw. Currently, interest rates are on their way DOWN everywhere, not up. What do you think will be the effect on assets, including property, of more and cheaper money bw ?

by Independent_Observer | 28th Sep 24, 9:01am 1727470892

The yield curve inversion we just experienced wasn’t ‘average’. It was over 700 days. The only comparable inversion was the lead up to the 1929 crash as subsequent Great Depression.

So difficult to say if we are about to experience the ‘average’ recession or not. Generally the bigger and longer the yield curve inversion, the bigger the recession.

Heres a chart showing this graphically:

https://x.com/gameoftrades_/status/1836782385649840278?s=46&t=MUwQeKa7M…;

And it doesn’t appear that the recession has even started yet - so what we are experiencing now could be relatively good compared to what could happen the next 12-24 months as recession likely takes hold.

by Yvil | 28th Sep 24, 8:00pm 1727510422

"Generally the bigger and longer the yield curve inversion, the bigger the recession."

I agree with you IO, but I'm not sure we can extrapolate past inversions to today, because of the very strong government and central banks interventions and manipulations.

by two_pair | 30th Sep 24, 7:03am 1727632988

Monetary, trade and fiscal policy were contractionary in the Great Depression. The response today is the opposite (Bar US trade policy)

by SomeKiwiFounder | 28th Sep 24, 2:03pm 1727488999

What’s the average duration of GDP per capita contractions? Raw GDP is manipulated by govt debt and net productivity losses on migration…

SKF

by Toye | 28th Sep 24, 9:40am 1727473243

Roughly:

Over 70% clearance = Hot market

50 - 70% clearance = Stable market

40 - 50% clearance = Falling prices

Under 40% = Ya screwed

by Zachary Smith | 28th Sep 24, 9:57am 1727474238

Nonsense.

by Zwifter | 28th Sep 24, 10:46am 1727477164

Yeah pretty much. To be honest Auctions are not a great way to gauge the market, you need to be cashed up or have prior approval to even be in the game. Probably not a linear graph either, the serious investor money can make a sudden and dramatic entrance when things take off. Found it a great way to buy myself if your available funds exceeds that of the house you are looking at.

by SomeKiwiFounder | 28th Sep 24, 2:04pm 1727489091

Ah yes the classic criticism of a measure without offering alternative measures. Pick one. I’m going to guess it’s not too bright right now…

by Houses Overpriced | 28th Sep 24, 10:51am 1727477465

Truth hurts.. are you not tired of spruiking

by Mypointis | 28th Sep 24, 1:26pm 1727486793

Tired of your negativity.

by NZGecko | 28th Sep 24, 2:21pm 1727490064

Ooooooh contraire Mr Pointedbits.

FHBs get much cheaper housing now and into 2026. Rejoice, sing and dance in the streets you LeverageJockey!!

by agnostium | 28th Sep 24, 3:21pm 1727493688

A crashing house market is great for New Zealand overall, how can you possibly say he's being negative?

by Yvil | 28th Sep 24, 8:05pm 1727510750

HO was not talking about housing or any other topic for that matter, he/she just tried to upset others. Here is his/her post: "Truth hurts.. are you not tired of spruiking"

by Houses Overpriced | 29th Sep 24, 11:10am 1727561444

Oh baby, hope it didn't upset you.. I guess it did, as it had your favorite word 'spruiker'

by The Man3 | 28th Sep 24, 11:36am 1727480207

Not sure what many get out of talking absolute nonsense?

If it makes you feel better that property prices in the North Island has dropped in value over the past couple of years, then I am happy for you.

Reality is that NZ house prices still represents very good value compared to overseas!

ChCh prices have been stable over the past couple of years I can assure you, and have been pretty active over this period!

Investors generally arent buying to rent out now, more in buy and improve.

by NZGecko | 28th Sep 24, 2:25pm 1727490348

Well fantastic!! Apparently the Chch marshlands is just bulletproof.....until it isn't. Its from a much lower base, so ofcouse it won't crash by the higher totals, like the Real -40 to -60% that already there and coming down the pipe, for the Northern cities.

Chch is supposedly armored plated, as recalled all the time here, by various and obviously Overlevereged3andhalflittleMen.....

- Like a steel plated Ned Kelly, before his final showdown with the lawmen.......his exuberance for an easy moneyed life and overleveraging his superior nouse, did not end well!

by The Man3 | 28th Sep 24, 5:10pm 1727500211

NZ Gecko, your true colour of green is showing!

you can be as envious as you want to of property owners/investors, but it will not make you anymore financial!

Think you need to worry more about your own financial situation rather than people who have done nicely out of investing in property!

Your generalisation about huge property drops is just boring and very inaccurate, and shows that your knowledge of NZ property values is very limited!

by Yvil | 28th Sep 24, 8:13pm 1727511209

Very good post TM3. I wonder why Gecko is so obsessed with house prices and why he/she is so desperate for prices to drop? He/she will probably gallantly, and falsely claim that it's because it's better for others, I think the real reason is different, and much closer to the "green" colour of envy you mention.

Your point about focussing on improving one's own situation, rather than obsessing on other's business is spot on !

by CrispyKahawai | 29th Sep 24, 10:52am 1727560329

His post is rubbish and yours is even worse. Envy has nothing to do with wanting society to function better at the 'expense' of dropping house prices. Average people used to be able to afford average houses. Why are you unable to see that this is a problem? I own a house with high equity and have a very high income so please don't try to tell me I'm jealous too, it's lazy.

by NZGecko | 29th Sep 24, 12:14pm 1727565276

3.5LittleMen and Yvers, I was stating the bleeding obvious in 2021, when I warned and knew a property crash was due.

So now the crash is 2 to 3 years into the biggest destruction, in speculative behavior since the Great Depression...... We are back -30 to -40% in the larger cities, with the regions to now follow....

Lessons will be learned, for a few years, as the Fianacial wounds bleed and eventually the callouses heal.

Then in many years, the speculators will start their wicked feast again.

Green envy??? No, not envious at all, I know I have more than enough. I don't need to chase exploitative money making schemes, that require rentier extraction.

I have mastered capitalism fine, have abundance, without resorting to trading basic shelter, outcompeting and pricing out the poor.

by wingman | 1st Oct 24, 11:17am 1727734633

That's because you haven't got what it takes to go into massive amounts of debt and take phenomenal risks.

You're a keyboard property 'expert' Gecko.

by wingman | 28th Sep 24, 3:02pm 1727492546

A quote from an article on property in today's Herald...

"Interest rates on deposits are also falling so those who were thinking it was great to have cash in the bank at 6% will be thinking what to do when it is 3.5% and looking at investing in property. "

by Zwifter | 28th Sep 24, 3:27pm 1727494071

Correct, Money in TD's are at record highs so it will just flow out to property again as soon as rates drop low enough. Hopefully I will get one last bite of the cherry come November but only the 6 to 9 month rates will be any good.

by Amokk | 28th Sep 24, 3:37pm 1727494669

HAHAHAHAHAH yep all those boomers will really want to splash their TD's into houses that are essentially relying on capital gains to make a profit when they are in their golden years. Whinge-Man you are so full of it...

by wingman | 28th Sep 24, 4:23pm 1727497402

It's nothing to do with the boomers Albert Einstein, it's common financial sense.

https://www.reuters.com/markets/new-zealand-house-prices-rise-6-next-ye…

by NZGecko | 28th Sep 24, 5:58pm 1727503094

Really Winger? Bit laughable that article.

Hand clutching straws much?

Really hanging you hat on the Rooters Fake-news-organ?? Really?

They interview your best bud, Tony (5 to 10% gains every year) Alexspruikuzander and relay his warped and always wrong opinions??

Mate get some credibility.

Ole mate Denzel has a good take on the fools, the media routinely suck in by false narratives: you may learn from this......?

(1724) Denzel Washington - About the Fake News (2016) - YouTube

by wingman | 29th Sep 24, 10:20am 1727558424

Auckland is currently undervalued.

https://www.opespartners.co.nz/property-markets

by NZGecko | 29th Sep 24, 12:04pm 1727564641

Come on Winger.....more comedy from you:):) Very funny!

You now quote the Property investment guys at the Oppaaaaas - they are actually some good characters, but totally property obsessed ticket clippers!! You need to upgrade to better friends and associates.

Very Funny.

Really you need to find some objective sources, or just be realistic dammit!

I made the warning of the impending NZ Property crash in 2021/2022 very strongly.......(Its now midcrash) based in the logic of massive overvaluation and a study of booms.

This Fact that is 100% undeniable: EVERY BOOM BUSTS! They all BUST completely.

We are just 1/2 into this bust and all your self-interested and obsessed Icarus Wing flapping and lip jogging wont stop what is now in motion.

I don't need to drag in new punters to my already made investments....I wonder suspiciously why you see the need rant on about the riches in future housing in Swamps and Bayous of Riverhead. AK councils are blocking future development in these floodplains.

_________________________

No, Not envious at all, I know I have more than enough. I don't need to chase exploitative money making schemes, that require rentier extraction.

I have mastered capitalism fine, without resorting to trading basic shelter and pricing out the poor.

by wingman | 29th Sep 24, 12:04pm 1727564674

You remind me of goldbugs.

Always banging on about the great economic crash which is just around the corner that's going to make them rich...but it never happens. I've been following manias for decades, and the boom/bust you refer to was nothing of the sort, the market just got a little overheated.

Anyway, I must go, there's a new subdivision nearby that's having a sales campaign this afternoon, and it's generated a huge amount of interest, and I'm off to check it out.

by NZGecko | 29th Sep 24, 12:16pm 1727565378

Did not know the Ducks or long-legged Stilts, were active in the NZ real estate market?

We learn new stuff, all the time here!

by wingman | 29th Sep 24, 5:38pm 1727584695

"Along with Riverhead, Coatesville and Dairy Flat are also popular locations for high-end lifestyle properties. The former Kim Dotcom mansion, now known as the ZURU mansion, on Mahoenui Valley Road, still holds the record for Coatesville’s most expensive property after being bought by the Mowbray siblings in 2016 for $32.5m."

by Amokk | 29th Sep 24, 1:32pm 1727569942

I’m for real wondering if Wingman is a parody account.

by wingman | 1st Oct 24, 4:06pm 1727752017

What is a 'parody' account?

by ghytresd | 1st Oct 24, 9:53am 1727729617

Those folk need to get out more, houses and big bank TDs aren't the only game in town.

by wingman | 1st Oct 24, 2:46pm 1727747186

Maybe you could give us a clue what is.

I keep hearing this, but there's an extreme shortage of evidence.