A chill wind blew through the residential auction rooms in the first week of winter.
Interest.co.nz monitored the auctions of 280 residential properties around the country over the week of 31 May to 6 June. That was down from 359 the previous week and 416 the week before that.
The downturn in activity was not unexpected as the market moves properly into winter mode and sales activity starts to cool along with the weather.
Of the 280 properties on offer at the latest auctions, 99 sold under the hammer, giving an overall sales rate of 35%, more or less in inline with recent norms.
Similarly, 32% of the properties that sold achieved prices greater than or at least equal to their rating valuations, a figure also within the recent range.
Next week's figures could be interesting with new rating valuations due to be released in Auckland, the country's largest auction market by far.
While the main focus will be on how much the valuations have moved in either direction, it will be interesting to see how they affect both vendors' and buyers' perceptions of value and the prices they are prepared to accept or pay.
How much this affects the selling price-to-valuation ratios at auction, we will have to wait and see.
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.
12 Comments
YES CVs will be the talk of the town, when the yearlong delay ends and they hit like a poisoned dart between the Specuvestors eyes!!
Once the Auckland market CVs all drop the required -10 to -30%, in the coming week, to be inline with the actually occurring sales of last year/this year, a vendor reckoning will occur.
This should be a hard, cold, realisation cue to the Vendors and home hoarding Boomers, that think their pile of unmaintained sticks and dirt is worth moonbeams of cheap, panic money, prices.
It ain't and it's going to get cheaper upto 2027/2028.
But will the penny drop, for sale forlorn, last holdouts, "i need this much" Vendor ? It's risker, the longer they wait.
These forlorn vendors are numbering in the tens of thousands, which should make them worry even more , about reaching prices even 60% of their wants and needs......
Property deflation is still in midstream progression, the likes of which, have only been seen in the much milder crash of the 1970s.
Capitulate now, while you've only lost a REAL -30 to -50% from peak or face -60%++ losses in coming years.
Don't say you did not get fair warning from the Gecko. He knows the rub of the green, better than most!
Or ignore and be the proverbial stupid possum in the head lights, and the insuring financial carnage, as values erode more so.
Gecko.....salvating as it awaits the new, much lower CV mail, like dreaming of delectable forest critters on a nearby branch!
Not so much salivating, the big rates, water bill rises coming next month and the next big insurance rate hikes to fill the new disaster fund......oh well, just pay the bill and be happy on the green.
Yup. Capital Losses. Yield has been unknown in calculations for a decade. When will the banks start to clear the speculation overshoot?
I assume Chloe Swarbrick will be calling for a refund to Auckland ratepayers now that it’s clear we’ve spent the past year paying inflated rates based on outdated rating valuations. Had the new CVs—calculated a year ago—been released on time, we’d have paid less. Given her advocacy for a broader wealth tax covering all assets and increasing the annual levy to 2.5%, I trust she’ll also be consistent in pushing for tax relief as asset values fall.
Just a couple of points:
* I'm not sure that Chloe is the one who levies Auckland's rates;
* I'm also not sure that, if Auckland house 'values' dropped evenly by 20%, or any other figure, it would make any difference to the dollar amount of rates the council would be asking you to pay, which is determined by how much the council wants or needs to spend.
Fair points — I'm being a bit facetious. Of course Chloe doesn’t set rates, but as Auckland Central’s MP and a vocal advocate for a 2.5% wealth tax on all assets, she should have something to say when people are taxed on inflated values.
We all know the answer though: when wealth drops, the tax take never does. Refunds? Never going to happen.
Unfortunately the councils need more money every year......sad but true.
Throughout Auckland, there are a lot of 50 to 100 year old subterranian pipes. There is no significant, stagged, replacement planned as it should be. Its largely replaced, when broke or major new development occurs.
This massive scale of other various decaying local and central govt infra, as PDK says, is a financial tsunami / very costly, we cannot afford ourself.....or clean beaches and clean safe running water, in many places in NZ.
But with the separate 7.2% Ak Watercare volumetric water rate rise about to hit, fresh water thankfully, looks likely for another year in NZs largest metropolis.
Much of this decay/entrophy Is just defeŕed, until it breaks and the Brown stuff washes up at Pt Chev beaches.
So Auck council needs to siphon 5.8% more from rate payers, and this still does not to cover the replacement of the decaying infra. The new CV DIFFERENCES WILL JUST WORK OUT, WHO PAYS WHAT, BASED ON DIFFERING PROPERTY VALUE ALLOCATIONS.
So if your dogbox has dropped say -30%, you may get off lightly with a 3.5% rates rise.......if your high end cassa has just dropped -10% look forwards to a 10% or so rates hike.
Meanwhile, rents are dropping upto $100pw between tenancies, with the flood of properties all about the place, to get bums into the specuvestors ponzi purchased beds.....maybe we'll will be bulldozing some, in comming years, to cut into the "too many houses problem" we now have?
Cue the crying Specuvestors and whining on the various FB property pages......"I have to drop the rent and pay more to cover the increased bills and mortage" boooohooooo:)
Wonder what the FB property handle , is Yvers, CoteDZin Ponzi and Nifter running ?
ENJOY PARADISE folks, get out there and enjoy the debfree dayz!
46 completed apartments with no committed contracts
OMG that's going to sting....
What's the bet the bank or financier finished the project, in a forlorn attempt to recover funds?
Bet a big haircut still happens!
This still midway property crash, will fell many, mighty Totara!
They may not get an acceptable return selling in bulk, I can see these being packaged up in smaller lots. I hate this type of setup as I hate Body Corps.
I wonder if Kianga Ora are looking at picking these up? Probably too upmarket for them.?
Not sure our tax payer money should be spent on Takapuna lake side apartments.....
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