Residential auction activity remains subdued as the market settles fully into winter mode.
Interest.co.nz monitored the auctions of 287 residential properties around the country over the week of 20-26 June, up from 264 the previous week, but down from 296 the week before that.
Anything below 300 properties a week is considered a low level of activity. The current number being offered each week is about half what it was during the summer peak.
Of the 287 properties offered at the latest auctions, 101 sold under the hammer, giving an overall sales rate of 35%. That's down from 37% the previous week and 38% the week before that.
The sales rates were particularly weak in Auckland where just 30% of the properties on offer sold under the hammer, and in Gisborne which had a 33% sales rate.
The highest sales rates for the week were in Canterbury, Waikato and Dunedin, which all had under-the-hammer sales rates of 50%.
The table below shows the latest results from around the country.
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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5 Comments
https://www.afr.com/property/residential/treasurer-contradicts-housing-…
Chalmers quickly moved to play down any responsibility for the housing slump, saying the price slide was “for reasons that go beyond changes in the budget”.
“I know that there is a technical definition of a correction … it hasn’t seen the sort of percentages which are consistent with that technical definition,” he said.
“But I know that what Clare [O’Neil] was describing was a general situation where house prices have softened a bit, auction clearance rates have softened a bit, for reasons that go beyond the budget.”
Its going to take a while for us to get over our property obsessions, the banks, the real estate industry and the media can't let go of it. Since the 1990s the 3 have spruiked it relentlessly. Now watching a 30 to 40% permanent correction to the(1mill) normal price base can't come soon enough.
"Since the 1990s the 3 have spruiked it . . . normal price base can't come soon enough"
Been going on longer than that. I recall in the late 1970s the property market was hot and the respected Sunday Times whole front page devoted vaunting villas in Devenport fetching $100,000 and my parents recalling that the market had hot periods during the 1960s.
So what then are your normal prices???
https://regions.infometrics.co.nz/auckland/income-and-housing/housing-a…
I propose at that the price one has to pay is a function of the amount of credit available. And that the major enabler of higher prices has been the simple willingness of the big four banks to expand their lending book to make more money. I think that while your house
Was making more money then you each year.
You where more willing to pay higher % of income to get that tax free gain. Some of that gain came back via house as an ATM top up lending for jetskis international holidays and ITM fishing show type boats.
Now that the house may make nothing , you have to fund your lifestyle choices yourself, you are less willing to pay a high % of your weekly income on mortgage payments.
Maybe for many the question is "whats the max % of my income I want to pay on the mortgage as I want a life"
This now perhaps sets what each person individually see's as affordable. As wage growth is slow and job security is polling at record low levels, we can safely say, and see, that buyers are not being quick.
People are also facing up to their lack of retirement plans, which were to flog the rental (that they bought after attending some cool seminars) in a few decades, as prices double every decade. What was promoted as a sure thing, is now not so sure. Rather then tax free capital gains they only see after tax top ups stealing from lifestyle.
We had Irrational Exuberance, now we have Rational Caution.... there is a 30-40% difference between the two.
Yes, the golden goose strategy is unlikely to pay such good dividends over the next decade as it has in recent decades. A rental property should be a used to supplement retirement income (while hedging against inflation) - that's what I plan on using our one for.
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