The latest residential property auctions saw a sudden drop in activity, with interest.co.nz monitoring 436 auctions around the country over the week of 8-14 November.
That was down from 466 the previous week and 485 the week before that.
Activity is also down from the comparable week of last year (9-15 November 2024) when 461 properties were auctioned.
The drop in activity at the latest auctions was a surprise, because activity usually gathers pace at this time of year as the market heads into the early summer selling season.
The sales rate was also softer at the latest auctions, with 173 properties selling under the hammer, giving an overall sales rate of 40%.
The sales rate has now declined for three consecutive weeks, down from 49% in the week of 18-24 October.
The lower results at the latest auctions are surprising for the time of year, but one week does not make a trend and we'll need another couple of weeks' results to draw any conclusions.
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.
13 Comments
Could be a good time to pick up properties that need a little work at bargain basement prices.
Bargain basement home prices, will really be found in 2027 or 2028.
Still though, if a ratbox house is turd polished quick enough and then flicked on, they may not be much of a victim of the ongoing NZ house price crash, that is now set in as a long-term trend.
The Trend is your Friend FHBers. Only offer within the older 2012 to 2015 historic price range - negative equity is reported as a biatch. Just ask anyone who purchased in 2020, 2021, 2022, 2023, 2024......
Will be an election football. Aka it won't happen unless Nats get a majority. The odds are not in their favour.
My personal view is that we are nowhere near bargain basement prices - buyers would be doing vendors a favour (by buying now) who own way overpriced shitboxes that will need hundreds of thousands of dollars spent on them over the coming years/decades, on top of the already big mortgage. I see houses everywhere that have been significantly run down and are in extremely poor condition and yet they want really good money for what is more a liability than an asset at this point in time.
The new planning rules re prioritizing development around train and bus points means a shitty house on a big section, but a long way away from these assets is now not worth as much as the RC is so much harder to get to cram units on. Some developers are sitting on break even land at best and may try and sue council here.
Good luck. Purchased for spec capital gain gambling. Should people sue Lotto if I dont win...?
Know when to fold em...
I've noticed the poor condition houses are selling at significant discounts.
They are often undevelopable. Land has fallen in value, and often the site would get better money if you had already removed the house, good school zones are the exception. Browns Bay is a classic for older not desirable builds on steep hilss built during hard times with cheap materials.
Construction is expensive. Land need to be cheaper to get the numbers to stack up.
Don't fix for more than six.
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