More properties on offer at the latest auctions but no change in the sales rate

A friend was selling his home via auction, so I watch ray white auctions during Thursday.

Observations

• Specs offering 15-20% below new RV to start bidding.
• Hardly anything sold under hammer with negotiation required, makes sense no one wants to bid against themselves, then start negotiation as in most cases competitive bidding stopped short of reserve.
• Auctioneer would often only accept another 20 or 50k, indicating they where still a long way off reserve and not interested in 2s or 5s. Auctioneer refused 5k bid and then heated argument with bidder over his right to do so, that did not look great.
• Many had bids over RV ( I though good bids) but moved into negotiation, I guess to try and extract another 20k etc, always best to offer no more if you where the top bidder, if you do add 10k, do not do it as a bid at auction, let it pass in then PILE on the conditions via a conditional offer to swing power back to you.   
• A few wanted nuts money for old cheapies. ie bidding got to 800k and wanted 1.1mil
• There are lots of real bidders, but they are not meeting vendors expectation, so there is a bit of a stalemate going on.
• I saw no obvious forced "urgent" sales on Thursday, seems like there are more down South Auckland, most of these where not obvious ex rentals.
• Strong bidding on 2bdrm brick and tile units, as always.
• Older stock of entry level are achieving bids at there last sale price of 2019.
• Its hardly enthusiastic bidding, more like a trip to the dental nurse, but sales possible
• I sense that no vendor is testing the market, these are vendors that want to sell, but they need 'x" for there next house and bidders offering 0.9 x.
• Most houses had conditional offers waiting to be presented, which seems to be the strategy here, use auction to get conditional offers.  Probably a gd startegy actually if you want to sell and know the market value

https://www.rw-theevent.com/     was a big event over the day

So given all that, I do not see the bidders suddenly upping bids 10% but if vendors willing to drop say 5% and bidders come up a touch then we will see bigger sales numbers, hence I think we maybe 5-10% off the bottom, I think the 10% higher band as there are a lot of totally blind to market value vendors still out there, who will work there way through a few agents then finally sell.    Right now if you happy with 2019 prices I think you can sell there.

But they get twice the house in Houston for that money.

If you go onto reddit or face book there are hundreds if not thousands of "tell them there dreamin" type comments, comments here are pretty balanced, but in the wider community there is still a feeling that prices are too high.

A lick of paint and she'll be right...

unlike this one or the shitboxes of flatbush

https://www.trademe.co.nz/a/property/residential/sale/listing/5533030657

The novice sees the "shitboxes", the clever man sees the over 4,000 m2 of land underneath.

I really respected David Lange, he could represent all of NZ and was a reasonable man with a super sharp intellect.   together with (Mr Lamb Burger) Mike Moore, and Roger D they where much more like Aussie Labour.  These where people that wanted productive kiwi enterprises to grow,

And then there is Hippy and his non cis non white male hangers on, what a clown show Labour has become, so so so far from there roots of a fair days pay for a fair days work, Sundays and Saturdays off.

Before politics David Lange worked in mangere/mangere east as a lawyer and assisted people of low means including my grandmother. He obviously walked the talk

I meant because it is higher than 80 percent LVR which is the benchmark

Should I stand corrected Dale

It used to be more way more, but unless it is achieving 90% closing success it is just more a branding exercise for the real estate companies, which they get the vendor to pay for.

Doom and gloom is subjective, the changing paradigm of house price appreciation objective.

Interest.co.nz monitored the auctions for 375 properties around the country over the week of 13-19 September, up from 286 the previous week.

The last time that many properties were offered at the monitored auctions was mid-May, meaning last week was the busiest in the last four months.   Of the 375 properties on offer at the latest auctions, 166 sold under the hammer, giving an overall sales rate of 44%.  The sales rate has bounced around between 39% and 49% over the last five weeks. The latest result was bang in the middle of that range, so no real movement there.

Spring does not indicate a bounce in sentiment, every year more list in spring because mud is hard to sell, and rain keeps people away from open homes, tree's turn green and everyone has a better mood. In stats its called seasonally adjusting the data.   Are your green shots indoor or last season outdoor?