The past week saw a huge drop in the number of properties auctioned.
Interest.co.nz monitored the auctions of 244 residential properties around the country over the week of 4-10 April, a decline of 53% compared to the 519 properties auctioned in the previous week (28 March-3 April).
The last time the number of auctioned properties monitored by interest.co.nz dropped that low was in mid-August last year, when the market hit its winter low point.
The low number of properties on offer would have been affected by the school holiday break and the fact this week's auctions follow on from the Easter long weekend.
However, even allowing for that, the latest drop was both sudden and steep.
The sales rate, however, was virtually unchanged from the previous week, with 82 of the 244 properties on offer selling under the hammer, giving an overall sales rate of 34%, barely changed from 33% the previous week.
After steadily declining from this year's high of 45% in early February, the sales rate appears to be settling at around 33%.
One third of properties selling under the hammer, with two thirds being passed in or withdrawn, seems to be the new normal nationally, with some regional variations. The table below shows the latest regional results.
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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15 Comments
Hmmm that drop in auction numbers looks more like Easter/holidays timing than anything else
Clearance rate basically unchanged at ~33%, so at least on this weekly snapshot things look soft but not obviously gettin worse
Still seems like a “more sellers, fewer buyers, takes longer” market rather than anything blowin up
But if clearance rates start dropping into the 20s and stock keeps building, then yeh different story
Not really seeing that from this auction result alone
Life goes on. I am seeing more sales in the auctions where sellers are accepting lower prices than they actually paid a few years earlier. If a seller gets a pretty good offer at auction they should sell. Life is too short! I am following one property that rejected what I thought was a decent offer yet remains unsold almost a year later.
The vested interests of the NZ real estate industry, the banking industry, the insurance industry and the media, have all operated in unison for decades to push up the price of houses to be the most expensive in the world(RTI) are now frantically trying to pump life into the NZ economy, that is encouraging the gullible and naieve kiwi to keep buying and selling low quality houses to one another at every increasing prices. Watching these industries in their death throws is great to see. Long may it run and go deep.
"death throes" - yeah, I know, I'm that guy.
Probably Nothing
https://www.stuff.co.nz/home-property/360950702/he-paid-879k-now-its-wo…
Vincent said he bought the property off the plans for $879,000 and settled in 2023. He said the bank valuation on the property now is $685,000, and he saw a similar unit in his development sell for just $620k a few months ago.
“Even if we wanted to sell and buy in the same market, we cannot. There’s too many townhouses, and mostly they’re identical. Some with more advantages like closer to motorway, better neighbourhood, but because there’s more supply than demand, the selling price is lower than valuation.”
DO NOT BE THE FOOL WHO PAYS VALUATION
“When developers become desperate, like we’ve seen, they usually slash prices to secure a sale, and that can quickly drag down the value of surrounding units with similar size, layout and specification.”
“On average across all property types, Auckland stock has risen 9%. Yet townhouses are up by an above-average 32%, implying that some other property types have risen by less than the average of 9%.
Yeh townhouses do look pretty oversupplied in parts, esp Auckland
But thats a pretty specific segment, not really what the auction numbers here are showing
So more like the grind just continues
Is this your first Rodeo? Auckland is a pretty big part of NZ.
Clearly you have been collecting green shoots over the last few false dawns.
Auckland matters, sure
But if that weakness was flowing through more broadly I’d expect to see it showing up in the auction clearance rates as well, not just specific segments
So yeh not really seeing that yet
First Rodeo...
That's because developers do not want true price discovery on their huge Townhouse stock, they would rather price by negotiation..... or give away 25k of tv appliances etc etc
They will never risk auction, they may be forced into it by the banks like we recently saw where RRP 874k sold for 580k.
https://www.oneroof.co.nz/news/desperate-developer-catches-a-break-afte…
The properties, initially listed at $874,000, sold for $570,000, $580,000 and $588,000.
The townhouse stock will clear , probably below 580k averages... and it will drag down the standalone housing above it by removing those FHBers from the bidding pool.
Saddle up Cowboy
Ok fair, developers will try avoid auctions where they can
But if that was large enough to be dragging the broader market I'd expect to start seeing it show up in clearance rates and overall turnover as well
Might get there, but not really seeing it flow through yet
FHBers hate auctions as well, they cannot make unconditional bids, you are looking at a section of the market that is simply not reflective of the entire market situation.
No town houses and few FHBers....
The desperate developers will get a break... as banks force liquidation, it will show up for two reasons over winter, banks and IRD.
Ok so just to be clear, you're expecting that to start showing up more broadly over winter via bank/ird pressure?
If that flows through then I'd expect to see it in clearance rates and turnover as well
Will be interesting to see how that plays out
While deadline sales look like a fishing expedition to see what the market will pay, it's beginning to feel like auctions are being used for that, too, in an environment of uncertain and falling prices and nobody can figure out how to value anything.
$1 reserve auctions, like mortgagee sales seem to find value on the day.
Banks are calling 2016 prices. Those that said this could happen in the last few years were seen a mad.
Strap on your crazy.
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