The number of properties on offer at the latest auctions lifted a bit compared to the previous week, not a surprise given the previous week was a short week followed by the long Matariki weekend.
Over the 21-27 June, Interest.co.nz monitored the auctions of 262 residential properties, of which 103 sold under the hammer giving an overall sales rate of 39%.
Both numbers were up slightly from the previous week when 246 properties were offered and the sales rate was 35%.
The most interesting number at the latest auctions was the number of sales in Auckland where the selling price matched or exceeded its rating valuation. This jumped to 56%, up from 35% the previous week.
The change was particularly noticeable on the North Shore, in Waitakere and in the leafy central suburbs.
This followed Auckland Council releasing updated Rating Valuations (RVs), which were down around an average 9% from their previous valuations.
That should have resulted in a greater number of selling prices reaching or exceeding their RVs, even if there was no movement in the selling prices themselves. The latest results suggest that is now happening.
The 56% of Auckland sales that reached or exceeded their RV was the highest percentage since the beginning of 2023.
The table below summarises the results by district around the country.
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.
3 Comments
We are told the average CV dropped by 14% in Auckland. Now we can see that slightly more than half the houses sold, are selling above the new CV.
Actually Yvil, I suggest you study the available information, more closely.
Auckland RVs dropped on average -9%. (However, some have dropped not much, some around and over -20% drops)
Some Auck RVs are now back near to the 2017 valuations.
Of the most recent INTEREST auction sales data, only 22.2% actually sold above the new, much lower Auck CVs.
Given these new RVs have had the biggest drop in 30 years, these most recent, weak auction results, prove that values continue to decline and the crash is still playing out.
To have these continuing weak auction results, showing more declines from the May 2024 RVs, must have the overleveraged sweating bullets. The Housing cash machine, that was soooo reliable and cash generating up to 2021, is now broken beyond repair for a long while, until values drop, to the required 7 to 10% yields.
Expect this all to bottom out somewhere in 2027 to 2028.
It was interesting if you heard the OneWood radio show yesterday on Newstalk ZB, the host said "the property market is Munted", and invited callers to disagree. I have not heard this approach before.... the guest stated that Cam Baggrie thinks the market is at 630 on the property clock, Personally I think its at 5 but vendor expectations are still at 3.
When TA suggests there is zero FOMO, does he really mean fear of missing out on the house or the capital gain?
I suggest this indicator means most people see a flattish or better market for buyers continuing for some time, with no fear of missing capital gains.
Forced sales over winter may represent value for homeowners, but IMHO the numbers still do not work for most investors, and with the possibility of Labour getting back in may make the regulatory tac environment a big risk. Most of my friends think national making interest deductible will go with Labour and possibly a wealth tax... many (0f my National voting friends) think National should not have given interest deductible tax relief back as we are still borrowing millions a day to balance the books
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