There was a pick up in activity at the latest residential property auctions, with more properties on offer and an improvement in the sales rate.
Interest.co.nz monitored the auctions of 397 properties around the country over the week of 2-8 May. That was up from 333 the previous week, and 312 the week before that. However, numbers are down from more than 500 a week over the peak selling season in March.
Most of the latest increase in activity was driven by a jump in auction numbers in the Auckland region.
The sales rate was also up, with 155 of the 397 properties on offer at the latest auctions selling under the hammer, giving an overall sales rate of 39%.
That was up from the sales rate of 30% the previous week, and 36% in each of the two weeks before that.
Of the properties that sold under the hammer, just over half (53%) achieved prices equal to or above their corresponding rating valuation, barely changed from 54% the previous week.
The table blow shows the regional results from around the country, while 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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10 Comments
Lots of cheaper stuff or mortgagee that "meet the market" selling. Everything else is static under the handbrake of greed. Noted exception of those selling in the Golden Visa price window.
First home buyers piling into cheaper entry level equals less rent slaves for the speculords. Even ponzi prophet TA is saying his survey indicators are "price negative".
The bloated weight of specu debt continues to exceed any upside...
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It's good to see sales rates ticking upwards. Hardly surprising given house prices are at bargain-basement levels at the moment. Now is a great time to buy while stock levels are relatively high (in the North Island atleast - the South Island is a different story). As stock levels fall back in the next 12 months, prices are likely to tick up at a higher rate.
In the Auckland region 114 houses sold at auction last week , according to that herald link, at least 5 were forced auctions so 4.3% of Auckland RE auctions last week are forced sales. And that was just Barfoot's mortgagee sales...
Probably Nothing.
A major road in Auckland I monitor has 4 mortgagee sales on it currently.
All at a time where the cost of Debt funds is about to rip higher.....
- This is still early days of the NZ housing market crash and many more forced or pressured sales, are still to appear.
Yet still the selling prices are much too high and will only clear when these asking prices reduce another -20 to -30%
So a bottoming out sometime 2028 to 2030 perhaps?
Most try to sell the house themselves before a mortgagee forced sale , perhaps 10-15% of actual successful auctions are forced right now.... moving into winter with record listings already, 200,000 investors thinking about selling, rates going higher, and an election coming up that could mean capital gains tax (to fund 3 free Drs visits each).... spooky spruiky - Be Quick
if Labour get in you well see record numbers trying to settle before July 27
The New Zealand Labour Party proposes a 28% capital gains tax (CGT) on the sale of investment and commercial properties, starting 1 July 2027 if elected. The policy excludes family homes and certain inherited properties, targeting property speculation to fund three free GP visits per year for all New Zealanders
I think you both misunderstand the market entirely. Mortgagee sales happen year-in, year-out and are nothing new. There's always a very small % of people who get in over their heads, or have something unfortunate happen that leads to them falling behind in their payments. However, the vast majority of home owners pay their mortgages on time (and in many cases are well ahead of where they need to be). The nature of our housing stock is changing. There are more townhouses being sold in our big cities and this skews prices to the lower side, because townhouses are cheaper to buy than stand-alone dwellings. The idea that prices are about to plunge another 20 - 30% is just ludicrous.
Inflation is also ripping higher, so if at years end and we have only limited RBNZ action, we have inflation at 6% and home prices drop another -3 to -5%.
- Given that situation rolling on another 3 to 4 years, we easily get more REAL losses in home values of over -20%
Inflation will not hit 6%, but it could briefly touch 5%. This will be short lived though, as OCR hikes will keep a lid on things going forward. Long term (beyond 2027), I see inflation falling to the low 1's as the benefits of our switch to renewables begins to take effect.
Interesting take, although the impact of renewable investment is questionable at this stage to the degree you allude. Is your predictions on the basis of Australias investments in this area?
More TA data signaling further price DECLINES. Ponzi pumpers cant deny this as he is one of their own.
https://www.oneroof.co.nz/news/tony-alexander-its-2021-again-for-seller…
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