Auction activity picked up strongly around the country over the last week, although the sales rate slumped a bit.
Interest.co.nz monitored 427 residential property auctions over the week of 14-20 February, up from 356 the previous week, which suggests auction activity is hitting its summer stride.
However, the numbers were still below where they were in mid-November to mid-December last year, when 500-plus properties a week was the norm, suggesting there's still some way to go.
But while the number of properties being auctioned was up, the number of properties sold under the hammer declined in both absolute and percentage terms.
Of the 427 properties offered at the latest auctions, just 156 sold under the hammer, which pushed the sales rate down to 37% from 45% the previous week.
Apart from the two weeks on either side of the Christmas/New Year break, that was the lowest under the hammer sales rate since mid-June, when the market was in the midst of its winter slump.
That suggests buyers are being seriously cautious in their bidding.
If that trend continues there will be a lot of disappointed vendors in the market.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices of the properties that sold, are available on our Residential Auction Results page.
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36 Comments
Ohhh dear, Specuvesters dreams of a housing market "recovery" when interest rates dropped, as they have prayed for, have infact fallen down a financial cliff.
With just 23% selling at or above (the much lower CVs!), at peak summer market, is telling that a further, ongoing multiyear decline, is now entrenched.
Winter will be a doosey, for the forever trapped within "topping up the rental mortgage account" Speculords........with actual rents to drop further.
Tough gig, getting unwelcomely rogered from both ends.
Even Tony Comb, now says its a mugs game. Who will lead the spuleculords ponzi revival now??.
Lol, strip out the loaded language "Specuvesters”, “rogered from both ends”, “Ponzi revival” and what we're actaully left withh is a weak auction clearance rate in a tight credit cycle. Basically cyclical and not apocalyptic
The cycle ride have been one way down since 2021, despite credit loosening and mortgage rates dropping from 7% to 4.5% most recently.
The normal cycle rules, that the ponzi proponents all told us here that would occur - drop mortgage rates and the housing ponzi is back to the races.
Seems the 40 year cycle is broken down and the cycle shop has liquidated, no spare parts for these obsolete cycles any longer. Time to bin it.
Many see the council paid cycleway, yet no one cycling anymore........
Perhaps best to look at a productive business and let the housing ponzi rest 6 ft under.
Perhaps best to look at a productive business
Yes, yes, try your luck at a productive business. Everyone knows that in a subdued housing market, the rest of the economy normally pumps hard, and isn't a difficult trading environment for a productive business.
Maybe you could have one that sells capital letters. "Buy a B, C, K and S, and we'll throw in two Os and two Ls for free!"
Thanks for that....I have a few small niche businesses.
Surely it is preferred to where we are now?
The case of bidding NZ housing into the most epic bubble in the world, for 40 years! Only to see it see it crash for 4 years now (we are mid crash btw) with no crash letup in sight.
Current values are still far from sustaining themselves......
Thanks for that....I have a few small niche businesses.
Imagine how big they'd be if you weren't wasting so much time talking smack on the Internet. You could be creating jobs and tax revenue for the country.
Surely it is preferred to where we are now?
It's preferred, but it's also Dreamland stuff.
80%+ of new business fail. All money gone. If you're buying an existing business that's healthy, they usually carry a price premium that makes a 5% rental return look good.
Even if they're "productive" most really good, survivable businesses need a high level of involvement from the owner.
Few if any people are even entertaining a business over a house.
Why just a few small niche businesses? Why not go big? Sell your property, precious metals and start doing something productive.
Imagine if money was applied with the same intensity as the mouth.
Loving the shills of the jilted and bewildered specuvestors:)
I'm one of the productive ones. I forwent house ownership in my younger years to focus on business. Had up to 100 on the payroll at times.
It's easy to say the words of you don't really understand what they entail.
So basically, you want someone else to create a productive business, and they can pay you more than you currently get, for the same effort. So you can store the surplus somewhere where it's not doing much of real value to the economy.
Congrats and well-done on owning a productive business.
So why lash it all, into hoarding the 40 year forever bid houses (deflating badly since 2021) now?
- Once the paradigm shifts, the ones left holding the old bag, sag.
Just sayin', it's not really just landlords and specuvestors holding the place back.
Kiwis like chillin and moaning too much.
Gecko spends all their time talking about specuvestors, but the real missing piece is the lack of action from owner occupiers. In healthier economic times, this is the demo that does much of the price setting, as they will often pay more than they can afford for their dream pad.
But it's way more fun if you can just make this a tribal battle.
Sales down, prices down, renters down, rents down, immigration down, easy bank lending down, but...
Council rates up, banks rates about to head up, maintenance cost up, empty properties up, speculord moaning up, flights west up, noise of capital gains tax up.
As Tony da Comb says, the party is over. To paraphrase...
I love me the smell of ponzi flatulence in the morning...
RBNZ see's 0% growth this year, yeah right.
they see falls!!!!
Yep rental property makes little sense right now unless you’re expecting capital gains, and they aren’t looking too likely. A long period of flat house prices is probably on the cards.
The NZ economy depends almost entirely on property prices increasing and selling poorly made low quality bixes to each other at ever increasing prices. Look at 1 million buys in Auckland its truely insane. It makes kiwis feel richer for doing nothing and this mindset is very much the way kiwis think. Money for nothing. It's very much embedded in a country where birthright gives entitlement.
The sad thing is commentators and economics just cannot accept this new reality. This country is totally stuffed.
The country is ok, we're just watching various sectors biforcate. The value of labour has been marginalized in a global labour market. So something like a TV is now super cheap, because it's made in a low wage economy. But a house is expensive, because it has to be made here and we're an expensive place to make things and certify them how we want.
We're definitely not 3rd world but our infrastructure is older. But also note the countries with newer stuff had to be partially destroyed first before they modernized.
This country is totally stuffed.
Red meat and milk doing great right now. Sure selling houses to each other feels bad.
The RBNZ have said normally lower rates means higher house prices, but prices reached a limit of % of disposable income so that will not happen, economy may feel better if we see better labour market conditions, but IMHO AI is going to crush anything in the intelligence domain, better to be breeding animals for food, sport horses etc.
Sell inner city housing buy rural ( large enough to farm or produce on in some format)
there is no need to live in a city anymore
I’m in the big smoke on a bus heading to a concert. If doing nothing is your thing then yes no need to live in the city anymore.
I've lived in both.
Cities have more paid for fun
The country has more free fun.
Moko and friends spent the morning on tubes floating down the river. Just a good bit of nothing.
Live an hour out!!!
Smaller towns have been rising while bigger cities fall....
https://www.afr.com/wealth/personal-finance/why-retirees-probably-shoul…
To make matters worse, says Scherini, that $1 million property will likely soon exceed the age pension asset threshold of $1.074 million, and by the time they’re 67, they won’t be eligible for the age pension.
means testing what a biiiiatch
The couple owns both their home and the investment property outright. They receive $800 per week in rent, so a year’s rental income is $41,600.
Once $12,000 in rates, agent fees, maintenance and insurance are taken into account, that income shrinks to $29,600. There may be other costs too, such as state-based land tax, which can extend into the thousands.
That means the yield, or the net income as a percentage of the total value of this property, is 2.96 per cent.
Aussie rules will come to NZ... be very careful
time to talk to your trusted finacial advisor.
Without the Ponzi, Aussie is screwed for state and city revenue. Aotearoa has yet to match this scale, but closing the gap. F'more, if property prices were to go lower, the implications on the wider economy would be devastating.
Anyway, Aussies have been spending big at Bunnings and Kmart over the last six months despite cost of living pressures. Kmart going gangbusters because more shoppers are price-driven. The braindead media and economists think this is great because it's delivered a $1.6 billion profit to owner Wesfarmers.
Meanwhile, hospo is getting decimated in Aussie because everyone's largely tapped out.
https://www.livewiremarkets.com/wires/strong-result-falling-share-price…
Mmm, I'm not sure if it's tapped out, or given food and labour costs, eating out represents poor value for money.
I used to go out with the Mrs for a meal every couple of weeks just for shits and giggles. But at $120 or more for a 30-60 min experience, I can find way better bangs for buck.
- A South Auckland developer sold three townhouses for over $1.7m after a $1 reserve auction.
- The properties, initially listed at $874,000, sold for $570,000, $580,000 and $588,000.
- Listing agent Harsh Kathuria said the sales allowed the developer, who was at “breaking point”, to move on.
A struggling developer who reached “breaking point” caught a break this week after gambling on a $1 reserve auction.
The South Auckland developer got more than $1.7 million this week for the three high-spec townhouses he was selling on Caspar Road, in Papatoetoe.
He had previously struggled to find buyers for the properties and, according to his listing agent, was in “an extremely tight spot”.
The first house he put on the block at Harcourt’s Papatoetoe auction rooms on Wednesday had a declared reserve of $1.
The townhouse, one of three properties sold by the developer this week, attracted multiple bids. Photo / Supplied
Sixteen registered bidders turned up in the hope of grabbing a bargain. The opening salvo, however, was, at $100,000, quite a bit above the reserve, and the property eventually sold 68 bids later for $570,000 – below the RV of $790,000.
The remaining two townhouses in the same block were called immediately after and sold under the hammer for $580,000 and $588,000, to buyers who had missed out on the first property.
Harcourts listing agent Harsh Kathuria said: “They all tried their luck on the first one.”
so only 33% off original asking price , probably nothing
what would they rent for?
Looking online, $750 a week. So what 6-7%.
Must be shoeboxy, 3 bedrooms 105m2
Perhaps its just a true market price discovery.
Seems about right
this will scare the developers that have stock, this is worse then they expected i suggest.
if winners of effectively mortgagee auctions need a minimum of say a 5.3% net yield, is going to drag prices down re basement offers.
I do not think you can build them for this... so losses abound, and the building industry is going to have a long winter.
Indeed. No capital gain as most are already intensified, and no one is going to bowl new builds to redevelop. With the current market for rents I reckon we are going to see a lot more developers doing $1 reserve or the banks will have to lock n load.
be a good buying op for FHBers
Had a hard time listening, distracted by the excessive bins and letterboxes outside those AI rendered homes
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