The barometer in the real estate auction rooms turned from chilly to frosty at the latest auctions, with the number of properties on offer sinking to a three year low.
Just 199 residential properties were offered at the auctions monitored by interest.co.nz over the week of 18-24 July. That's the first time it has been below 200 this year and was the lowest number in any week excluding the Christmas break, since August 2023.
Of the 199 properties on offer, 86 sold under the hammer, giving an overall sales rate of 43%, which of course means 57% were passed in, hopefully to find a buyer in post-auction negotiations.
The latest Orders of Sale to arrive at interest.co.nz suggest auction numbers could pick up a bit next week, although with winter's grip not loosening yet and economic uncertainty at every turn, any meaningful improvement could still be some way off.
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.
The table below shows the latest results by district.
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8 Comments
It probably doesn't make too much sense to go to auction these days. I don't think it is too harmful to the campaign but sellers would need to be realistic with their price expectations. I was pondering this after observing a recent sale of a house very much in need of a do up. Not too serious renovations required . However, if the buyer renovates and puts the property back on the market quickly I doubt they would choose the auction option. A sales campaign these days will likely be lengthy and flipper/renovators will take a business-like approach. The whole process, searching, hard negotiating, buying, renovating, staging and selling will be a type of hero's journey.
but sellers would need to be realistic with their price
Wow we agree Zach. Prices do indeed to drop further to renovation and development to stack. Easy when prices are rising as the tide lifts all ships. When its flat to dropping, entry price is indeed critical.
Will the speuvestor give up on capital gains that they have already spent in their minds...?
You would have to be mad to purchase prior to polling day. As we close in on the election and the possibility of property related taxes, it would be a very tough market to look for the exit. That equals even better buying opportunities than today's already fridged market.
Capital gain is all speculation until the money is clear funds in the bank.
Yes most buyers today, will see capital losses for a few years ahead.
Current DTIs are still way too crazily high and very risky.
The bell to buy NZ housing, as a home, is when the average DTI is around 4x earnings.
- This current NZ property crash, of now 5 years, is doing its good work, in this regard.
Another epic down leg in property values is about to enter the stage and "this sucka is going further down"
Higher across the board energy prices, sick economy, wages going backwards (accounting for high inflation) and higher borrowing costs, will certainly see to it.
This will, imho, shave another -20 to -30% off current NZ housing values, over the next few years.
Mark this and let's recount in 3 or 4 years, at the bottom.
Even the vested interest, Opes property pumpers are onboard with using the word, "Housing Crash" more and more.......even they, cannot any longer deny, the NZ Property crash.
The are now explaining them, fairly well too!
This Always Happens Before A Property Crash...
The are now explaining them, fairly well too!
The guy has "Resident Economist" on his business card. You would think that anyone using that lofty title would have some credentials and / or experience.
Not just a steady line of patter.
Expert... yeah right.
Opes purchased three rentals at peak stupid. They now are all underwater and need topping up. That is code for non yield based investment aka speculation. He states he is "in it for the long term" so its all good.
This is gambling. At least you get free drinks at the casino.
The reduction in using auctions as a sales methodology is systematic of a system where there are not as many two or more buyers for every property for sale.
A market that has more buyers than sellers, is a market where supply does not equal demand.
And the main reason for this is restrictions in land use policies that result in supply being counter cyclical to demand.
The decline in auctions is more than seasonal. It is a good sign that supply is more meeting demand, at the rate of demand.
True.
Supply is much, much more than plenty.
Then there is the hidden supply that has been withdrawn over the last three or so years, from the middle of this NZ Property market crash, that will FLOOD the MARKET come spring 2026 and see the next downleg hit, bigtime.
The aging boomers canny hold the line on any longer and liquidation must occur NOW.... or spring 2026! Problem 101, buyers with LESS BUYING capacity.
Buyers time to offer 2014 or 2015 prices, is nigh.
It's as obvious as daylight and night, what's coming down this NZ property, ruptured Wellingtonesk sewer pipe.
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