There was a big drop in activity at the latest residential property auctions, with both the number of properties on offer and the sales rate declining.
Interest.co.nz monitored the auctions of 295 residential properties around the country over the week of 9-15 May, which was down by 26% compared to the 397 properties that were auctioned the previous week.
Last week was only the third time this year the number of properties offered at auction was below 300.
Of the 295 properties offered at the latest auctions, just 91 sold under the hammer, pushing the overall sales rate down to 31%, from 39% the previous week.
The latest result was only the second time this year the sales rate has dropped below a third and suggests market conditions are now a lot tougher than they were at the start of this year, when more than 40% of the properties on offer were selling under the hammer each week.
Prices also appear to have softened, with just 55% of the properties that sold at the latest auctions achieving prices equal to or above their corresponding rating valuations. That's down from around 65% at the start of the 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 the Residential Auction Results page.
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11 Comments
The next major downleg, of the NZ property crash has started.
The last straw of hope, for a falsely engineered market upturn, has been burnt to a crisp.
World prices for debt funds is going bonkers from here. As debt prices rise, borrowing ability collapses, as do selling prices. June/July 2026 to 2030 will be carnage, for any risk taking debt jockey.
Predict future banking inquiries, of "how and why?" these Banksters lent massive sums, only testing the vulnerable borrowers, with low equity, at just 6.5 to 7.5% potential interest rates!!
Further predict: Still more woeful stories, in years to come, of thousands of newly minted 2025 and 2026 borrowers "trapped" in continued, multiyear, negative equity.
Further predict: Due to NZ banks shamefully risky lending tactics, will be legislated to DTIs of around 4x and deposits past 20% only.
Many denied a crash was even s faint possibility in 2021/2022, yet here we are: Deep NZ Housing Market Crash.
Many will deny current likely predictions. They are blinded by 40 year recency bias and risky, jenga stacked, malinvestments.
Predict future banking inquiries, of "how and why?" these Banksters lent massive sums, only testing the vulnerable borrowers, with low equity, at just 6.5 to 7.5% potential interest rates!!
I don't see it
"Interest rates have been low for more than a decade, we tested 3-5% above market, we could not see it coming. We expected that when interest finally rises will be accompanied by income rises as well ...history tells us... we couldn't predict so many black swan events in a row"
It's defensible - even if you see through the smoke screen, can't plausibly prosecute
There will be no inquiry into stupid speculation
there will be many tears
meanwhile listing overhang grows as effective clearance seems to have hit a wall. YoY April sales in Auckland down 29%
Probably Nothing
Neither you, nor I, can predict the future. So, who's to say that the "next major downleg of the NZ property crash" is actually going to be the next major up-leg of the NZ property boom where people chase inflation-hedging assets (like well-located Real Estate) instead of specu-gambles like gold and crypto? As Yoda once said, "Difficult to see. Always in motion is the future".
Have you considered, that the long run recency bias, has mass deluded NZers, into the absolute belief (dangerious) that property can only be a one way, cannot lose bet?
There is 45 years of lower and lower borrowing costs, that have allowed larger and larger borrowings to support such. One problem, earnings only rose at 2 to 3%.........
https://fred.stlouisfed.org/series/IRLTLT01NZM156N
This led NZ home to become bid into the stratosphere, many times their earnings backed value.
A gigantic speculative bubble blew larger in NZ, than Japan had. This speaks volumes.
Time has proven, all bubbles burst - completely. A crash, as we are part way though today, was always coming.
The period of lower upon lower interest rates ended in 2021.
Mortgage rates are set to continue their 5 year run upwards and enter a stronger bull cycle, the likes of which, only the 1980s can talk of.
The force is strong in this one.....
I predict, like the others who came and left, you will become Spruiker roadkill as this recession rumbles on..... why do markets fall, because there are more sellers then buyers. Immigrants may rent but they do not buy as much and often take a few years to settle as renters first. I do not think most of the current sellers are landlords with empty houses... yet.
as Voltaire said "I disapprove of what you say, but I will defend to the death your right to say it."
Immigration is beginning to gather steam again. Never underestimate this country when comes to pulling another property boom out of the hat.
Capital losses are just not as cool as capital gains... burn. Both tax free though. Negative leverage coming a specu box near you.
I wonder what point do the banks begin low negative equity calls. Perhaps the trigger will be the ponzi in Aussie starting to slide
Banks rarely check for this, the exception is interest only loans which are reviewed on a rolling basis.
miss payments and checks are made, also if you sell a house, banks can take some of YOUR equity from the sale and decide to pay it against another mortgage you have... they do not need to get your approval
Another problem with staunching the bleeding in the housing space is as prices correct to a semblance of normal commensurate with average incomes. But the majority of the NZ housing stock is either old, or made with low quality materials. ( flipping mania)
However in this environment, if you want to get into the game you won't get a better time to buy a quality old style pre 1980s homes like a Mt Albert type bungalow, or other stucco /lead light), brick /tile scattered around.
Reflects the disastrous results I've witnessed in Hamilton in the past few weeks.
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