There was a strong jump in residential auction activity over the last week, particularly in the Bay of Plenty and Canterbury.
Interest.co.nz monitored the auctions of 562 residential properties around the country over the week of 21-27 February, well up from 427 the previous week. It was the busiest week for auction activity since the final week of November last year.
Most of that increase was due to some very large auctions in the Bay of Plenty and Canterbury, with 72 properties auctioned in the Bay of Plenty, up from 26 the previous week, and 98 properties auctioned in Canterbury, up from 32 the previous week.
Unfortunately the increase in auction activity did not result in an increase in the sales rate.
Of the 562 properties offered at auction nationwide, 219 were sold under the hammer, giving an overall sales rate of 39% for the week.
That was just a little bit lower than usual, with the sales rate mostly running above 40% since the beginning of August last year.
It suggests that buyers and sellers are both active in the market, with buyers maintaining the cautious approach to price evident since last year.
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.
The table below shows the latest results by district.
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22 Comments
Plenty of supply, demand and prices falling.
It's the spin that is so kiwi when it comes to property, with the language used by commentators to try and soften the bad news, words like "strong" and " busiest week" to describe an oversupply and falling sales volume. " Buyers and sellers are both active in the market" meaning people are trying to sell, but buyers are not buying.
After decades of getting shafted by sellers long may it last. With the volume of ever cheaper rentals buyers can sit on there hands and wait for those that capitulate, which sends the sale stats ever lower.
Govt has to keep the lid on inflation so their hands are somewhat tied due to the position ponzinomics has put us in.
70% sold over RV, so that implies prices have increased since those RVs were done. Probably not by much I imagine.
Only 27% of the houses offered at auction sold equal to, or above RV.
This does not indicate house prices have increased.
Time Lord,
I would say 27% selling unconditionally on the fall on the hammer and above RV in this market means a quarter of those going to auction are most likely pretty happy.
Remember, selling at auction only attracts unconditional offers; finance already approved, not subject to builder’s reports, purchaser has no house to sell, not subject to lawyer’s approval, and the sale is immediate and clean with no extended settlement period. When the property is openly marketed, unconditional purchasers are few and are like hen’s teeth, so unconditional purchasers have tremendous negotiating leverage over conditional purchasers so they are in an exceptionally strong position to negotiate quite a discount.
It really surprises me that such a number are paying over RV considering how all the posts on this site are of a collapsing market.
Oh, and Time Lord, now tell me, immediately after having gone to auction, how many subsequently sold above RV on either conditional offers waiting in the wings, or unconditionally to failed bidders after further negotiation.
However, TL you wouldn’t want to acknowledge all this. :)
Yes many comments like “I’m going to offer 20% under RV and they’ll have to take it”, good luck with that.
worked for those that attended last weeks developers $1 reserve auction, they sold at 580-588k CV more then 20% higher.
I did just that with a commercial property a couple of years ago. It was successful. Now it's making a 14% return with no outgoing's. For the same return in residential I'd need 3x the properties, and 4x the debt. Did take 18 months of work to weed thru the greed of other sellers though, most of which are still....unsold.
Offer what makes sense. Don't get emotionally tied. If no...just move onto the next one as there is plenty of unsold stock. Or just do what last years 240000 did. Head west never to pay a NZ speculord again.
Its much easier to play that game with investments, as there is no pressure to find the right school zone, spare bedroom for your mother-in-law etc, its just cold hard $$ and sense. Residential returns are rubbish without tax free capital gains, no serious investor would consider them if they did not have a side gig to make extra returns, ie cap gain, subdivision etc etc.
The Comb saw the writing on the wall, falling returns and increasing expenses. Bless you son.
Printer8,
My comment merely repeated a data point from the release.
“I would say 27% selling unconditionally on the fall on the hammer and above RV in this market means a quarter of those going to auction are most likely pretty happy.”
You’re now applying assumptions about emotions to justify your point. And your point is what exactly?
“Oh, and Time Lord, now tell me, immediately after having gone to auction, how many subsequently sold above RV on either conditional offers waiting in the wings, or unconditionally to failed bidders after further negotiation.”
You're trying to import data here to polish the turd up? Don't look over there, look over here!!
Here’s some imported data to review: still falling real house prices :)
Note RV's dropped considerably in last few years, Auckland's was long delayed until mid last year, next drops on the horizon.
They shouldn't be, but are a figure that many buyers anchor to in lieu of a listing price that we tend to avoid advertising in NZ. Which is a deceptive practice my REA imo
Personally I think the fact the comb has come across to The Cult of Doom from the House of Spruik, has really shaken the market to its core. Many in the flock are now wandering dangerously between Hope and Despair, not knowing what path the market will now take, Where is the Prophet we we need him?
Have I not commanded you? Be strong and courageous. Do not be afraid; do not be discouraged, for the Lord your God will be with you wherever the market goes.
And right now is still going down the shitter.
https://www.oneroof.co.nz/news/tony-alexander-16-reasons-mum-and-dad-in…
apologies to Joshua for slightly editing Joshua 1:9 above
The Cult of Doom from the House of Spruik,
Sounds like Game of Thrones.
The Faith Militant is the armed wing of the Faith of the Seven, essentially a religious police and military order that enforces the Faith’s laws by force in Westeros. They are a militant order of zealots who answer to the High Septon and act in the name of the Faith of the Seven, using weapons and coercion to impose religious doctrine on nobles and commoners alike.
Ashley Church might be the High Sparrow.
The collapse of a UK property lender is sending shockwaves through Wall Street. Lenders are weighing losses linked to Market Financial Solutions, which financed a Bangladeshi politician’s real estate empire. MFS financed the politician's large luxury property portfolio - hundreds of UK properties.
MFS’s sudden failure and entry into administration, with creditors alleging double‑pledging of collateral and warning of an estimated £930m shortfall against about £1.2bn of debts.
Major global lenders (including Barclays, Santander, Wells Fargo, Jefferies and Apollo‑backed Atlas SP) now estimating how much of the more than £2bn they lent to MFS will ultimately be recoverable.
https://www.aljazeera.com/news/2024/9/20/how-a-bangladesh-minister-spen…
There will only be one cockroach
Yeah right....tui.
There will only be one cockroach
The Bangladeshi politician's salary is only USD13K per annum. Apparently.
Imagine what Jacinda and Robbo could have pulled off. Empires across Grey Lynn and Ponsonby.
"Michael Gordon, a senior economist at Westpac, has issued a new report looking at whether the economy can have a sustained recovery without help from rising house prices making people feel wealthier.
He said he had encountered scepticism about whether it was possible. But he said, in part, it was already happening."
https://www.rnz.co.nz/news/business/588260/can-new-zealand-economy-reco…
Translation...Banks will have reduced profit and bonuses. Tears.
"Michael Gordon, a senior economist at Westpac, has issued a new report looking at whether the economy can have a sustained recovery without help from rising house prices making people feel wealthier.
These people are terribly condescending of our intelligence. Now, I'm not suggesting Gordon's rebuttal of "if the Ponzi goes, she all goes" isn't correct, but the assertion itself is not falsifiable. What he claims in the article doesn't quantify anything and the RNZ team probably doesn't have the chops / time to drill down. Stinks of don't scare the sheeple - which doesn't really help further understanding or describe reality.
Do IRD ever read newspapers / Oneroof?
https://www.oneroof.co.nz/news/every-wealthy-kiwis-dream-property-flipp…
https://www.stuff.co.nz/nz-news/360838717/wellington-apartment-building…
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