Auction rooms have just had their busiest week of the year so far, with interest.co.nz monitoring the auctions of 580 residential properties around the country over the week of 21-27 March.
That was up by 20% from 484 the previous week, and was the most properties offered at the auctions monitored by interest.co.nz since the last week of November.
A likely reason for the late surge in activity is vendors and their agents timing their marketing campaigns and auctions to be over and done with before the short weeks of the Easter break arrive.
However, while there was a big burst in the number of properties on offer, the number being sold wasn't looking so flash.
Of the 580 properties offered at the auctions monitored by interest.co.nz, just 196 sold under the hammer.
That gave an overall sales rate of 34% for the week.
The sales rate has been in a steady decline since it peaked for this year at 45% in mid-February.
If the current trend continues, the sales rate is in danger of falling below a third in the next few weeks.
The current wave of economic uncertainty swirling around the country will not be helping that situation.
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.
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18 Comments
Good to see volumes up, I was under the impression all the buyers had vanished months ago...
34% clearance with a rising supply looks more like a market doing its thing than falling apart.
Oh well, should be some creative interpretations coming along soon...
Oh well, should be some creative interpretations coming along soon...
We already have one in your comment - can't beat those mental gymnastics
Good Hollywood take, on these increasingly sickening sales stats Wellywood.........
Peak season has been demoralising, for those tens of thousands trying to quit property.
It is incredibly troubling to be holding property, especially with the dysfunctions at all levels in the Wgtn region.
Have you considered taking refuge elsewhere? Many are reported to be fleeing and seeking refugee status elsewhere, especially once the new, hefty water bills arrive.......
Yep for sure, interesting how a functioning level of activity gets framed as “demoralising”.
If “tens of thousands” were genuinely trying to exit, then a 34% clearance rate probably aint the stat to hang that on
Just putting it to you, in small, bite sized numbers......
Your thoughts on the 1 MILLION NZ boomers, that will be wanting or then forced to sellup all holdings, in the next 10 years?
PROPaganda. It is peak selling season. Alternatively it's the start of capitulation.
The irony is killing me.
I really thought you were out of straw to clutch at, you seem old enough to have gone through a few international crisis that have washed across NZ, what happens next?
Sales rate at auction around 1/3, or less. Are vendors aware of that figure when they enter the process?
It rarely cracks 50% in NZ.
Vendors do what agents suggest and auctions are one of the easiest marketing strategies they can use. Limited timeframe, sense of urgency, etc.
Basically you'd only want to auction a house in a hot hot market.
This is when smart sellers got best prices..... I remember properties where the next bid was 50k... they would not take less as there were a line of auctions to get through on the day, it was as good as it got for vendors, it peaked on the last week of Oct 2021.... some of us timed it to the week. But hey right now, if you are desperate for a sale 30% chance in 4 weeks its sold...
https://www.oneroof.co.nz/news/year-of-the-frenzy-inside-the-auction-ro…
In years to come, when real estate auctioneers look back on 2021, they’re likely to remember it as the Year of the Frenzy. Some of them called twice as many auctions as in a normal year. Some brought the hammer down on properties that went for eye-watering sums. At many auctions, the clearance rate was 90 percent or more, which is exceptionally high. Even when the country went into level four lockdown in August, the relentless pace continued, with auctioneers adjusting to selling millions of dollars’ worth of property while standing in front of a camera in their living rooms or kids’ playrooms.
As three of the country’s top auctioneers reflect on the year they’ve had, they use words like “astounding”, “phenomenal” and “insane” to describe New Zealand’s property market. John Bowring, Aaron Davis and Murray Smith have nearly 60 years experience between them, and have called many thousands of auctions, but 2021 will stick in their memories for a long time, not least because of the sheer amount of work they got through.
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https://www.afr.com/wealth/personal-finance/property-investing-will-pro…
Who will be most affected – and are they selling?
“We are already seeing some people reading the tea leaves and looking to sell their properties before the May budget,” Kingsley says.
Scott O’Neill, chief executive of property investment firm Rethink Group has also seen a “noticeable shift” in investor thinking, particularly among those who own large portfolios of residential property.
An oversupply with many people wishing to sell increasing and the number of people willing to buy decreasing.
Real estate operates on the supply and demand principle. You can spin it anyway you like, but you can't escape the reality.
Lucky country - Auctions slump as buyers worry about war, interest rates and petrol
The auction clearance rate nationally has slumped to its lowest level in almost four years as buyers worry about the war in the Middle East, further rate rises and already surging petrol prices.
The auction success rate fell to 60.9 per cent nationally, according to preliminary figures compiled by property data house Cotality. An easing trend in auction clearance rates has been evident since the Reserve Bank of Australia raised interest rates in February, it said.
Anecdotal but.. driving along East Coast Bays Road on Auckland's North Shore, every second house seems to be for sale - 6 months ago there were very few signs by comparison. It confirms the stats that show the overhang of public for sale and hidden for sale is not getting any smaller. To me, it seems there are only two likely paths..
1. a significant further drop in real prices (another 25% or thereabouts)
2. a long period of price stagnation while debt and real returns are eroded by inflation
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