The number of properties being auctioned and the sales rate both declined slightly for the second week in a row at the latest auctions monitored by interest.co.nz.
A total of 466 residential properties were up for grabs at auctions monitored over the week of 1-7 November. That's down from 485 the previous week and 487 the week before that.
Of the 466 properties on offer at the latest auctions, 199 sold under the hammer, giving an overall sales rate of 43%.
That was down a tad from 44% the previous week and 49% the week before that.
However, of the 199 properties that sold under the hammer at the latest auctions, 69% achieved prices equal to or above their rating valuations, the highest level in five weeks.
Overall, the auction rooms remain busy, buyers are active but remain cautious on price, and we aren't seeing any sign of a significant shift one way or the other in market sentiment.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the prices achieved for the properties that sold, are available on our Residential Auction Results page.
8 Comments
Still not spring takeoff. Price remains the issue.
So how will the flippers and specu leverage brigade make money unless they buy at much cheaper price. Cost of construction work has risen thanks to inflation. This means flippers and spec town needs to buy at much cheaper prices for that to stack up to today's market prices.
Those holding, rents down but rates and insurance etc up.
Popcorn.
Phew, I thought you guys all slept in. Little less drastic than usual, fairly low energy, but at least you made the effort.
Fair question. In a stagflation environment, how does the spec and leverage game make sense, especially in an already high price (expectations) game?
If we only look at markets and economies in small timeframes, like quarters and years, it doesn't. But then it's not very analogous to look at something that moves and trades fairly slowly (property) with something far more liquid like gold or meme stocks.
Personally I wouldn't see such activity providing much if any worthwhile return for several years. Although likewise I don't see the market reversing it's trend of the last few decades without a fundamental shift somewhere. Our governments will fumble here, leaving really only some sort of much larger international change, and good luck predicting the timing and nature of that.
It sounds like you agree with Averageman, but you don’t like popcorn.
Long term trends are a great comfort blanket but it doesn’t help clear the current oversupply of listings.
If I was brewing up popcorn for the sorts of "this time it's different" and "over leveraged specuvestors are going to fall over en masse" calls Averageman has been prophesizing over the years.....
I'd have wasted a lot of popcorn. The market has performed a lot healthier than much general consensus. The reasons were apparent even as the rates went up, the sorts of people who are in the property market aren't actually holding the same debt levels as 08' - thanks to the RBNZ instituting methods like LVRs are a decline of interest only borrowing.
As for oversupply, do we even know what a "normal" level of housing for sale is? People's frame of reference seems to be stuck on that period of 2021-22, where there was an undersupply of practically everything, and a whole lot of market fervour that I viewed as maniacal.
We can make a semi informed punt that lower rates will see demand raise over 12-24 months, at which time we'll probably see a market that's closer to stable.
"Fair question"
Pa1nter didn't ask any question.
I think he was referring to his question
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