Sales rates range from zero to 100% at Barfoot & Thompson's latest auctions

Property

Big improvement in volume of homes sold at Barfoot's latest Manukau auction, but sales were sluggish at the North Shore auctions

20th Jun 17, 11:20am by Greg Ninness

Barfoot & Thompson achieved an overall sales clearance rate of 38% at the agency's auctions last week.

The highest clearance rate was at the Whangarei auction where sales were achieved on all seven properties marketed for sales by auction, while the lowest success rate was at the Pukekohe auction where none of the five properties sold.

There was a substantial improvement in the sales rate at the Manukau auction last week with sales achieved on just under half the properties, a significantly better result than achieved at most of the Manukau auctions over the last few months.

Sales rates of around 40% or more were also the norm at the auctions held at Barfoot's head office auction rooms on Shortland Street, but the sales rate was just 27% on the North Shore, and sales were achieved on just a quarter of the properties auctioned on site.

The full results with the prices achieved for individual properties that sold, are available on or Auction Results page.

**Results of Barfoot & Thompson Residential Auctions: 12-18 June 2017**
Venue/Date	Sold*	Not sold*	Total	% sold
On site. 12-18 June 2017.	3	9	12	25%
Shortland St, CBD. 13 June 2017.	5	7	12	42%
Manukau. 13 June 2017.	10	11	21	48%
Mortgagee. 14 June 2017.	1	0	1	100%
Whangarei. 14 June 2017,	7	0	7	100%
Shortland St. !4 June 2017.	12	18	30	40%
Pukekohe. 14 June 2017.	0	5	5	Nil
Shortland St, CBD. 15 June 2017.	5	8	13	38%
North Shore. 15 June 2017.	7	19	26	27%
Shortland St, CBD. 16 June 2017.	4	10	14	29%
Total	54	87	141	38%
*Sold includes properties sold under the hammer or by 5pm the following day. Not sold includes properties remaining unsold by 5pm the day after the auction, including those that were withdrawn from sale or had their auction date postponed.

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68 Comments

by tothepoint - d… | 21st Jun 17, 5:05am 1497978335

Auckland housing market holding its own, following the 2014-16 upswing.

It's winter and just 90 days out from the election - but Auckland house prices are proving more durable than many (most?) here had picked.

by Independent_Observer | 20th Jun 17, 11:39am 1497915548

You really should call yourself Buzz Lightyear.....Auckland Housing....TO INFINITY AND BEYOND!

by MisterB | 20th Jun 17, 11:43am 1497915811

You're so right. Those 54 sales absolutely show without a shadow of a doubt that Auckland is holding it's own.

If by holding it's own you mean holding the May pattern, which was year on year slump in sales (-40%ish) and
lowest May sales volume going back years and years....

by CJ099 | 20th Jun 17, 12:13pm 1497917596

Look at the figures again tothepoint; it's not the sale price that matters, it's the sales volume. Even their over all clearance rate was onl6y 38% which is fairly pathetic.

Any Investor worth their salt would know that you need to keep the over all property sales volume up if prices are not to sink and they are starting to sink. Remember it can take a while for the over all property prices to fall.

No Property Investor in the right mind would invest in the current NZ market if they're just looking for capital gain over the next five to ten years.

by tothepoint - d… | 20th Jun 17, 12:31pm 1497918695

"No Property Investor in the right mind would invest in the current NZ market if they're just looking for capital gain over the next five to ten years."

In fact, there are plenty of investors still favouring the NZ property market - especially Wgtn, Auckland and provincial centres such as Palmerston North. Activity may have slowed down but, as Greg Ninness's article above reveals, it's by no means dead.

I also obtained information from the Auckland office of one of the country's major lenders - a trading bank - which verifies the matter.

by CJ099 | 20th Jun 17, 1:01pm 1497920506

@tothepoint: Well if you're not prepared to send up a link to your supposed information then we're simple not going to believe you.

by Zachary Smith | 20th Jun 17, 12:30pm 1497918630

I think you are a bit obsessed with the sales volume thing. You obviously have a lot riding on this gamble you have taken to sell up late last year and are desperate to see a significant price drop so you can say, "aha I won!" Thus you keep repeating it hoping it will influence the market. Believe me most of us old timers have seen this phenomenon many times before.

by tothepoint - d… | 20th Jun 17, 3:27pm 1497929275

Agree with you, Zachary. You're absolutely correct.

There are people here who assume that when sales volumes decline, prices must also decline.

Of course, this is misguided claptrap. (There is no such law in economics!)

Property owners may simply choose not to sell. (And that's what appears to be going on right now.)

by Groen_mamba | 20th Jun 17, 12:40pm 1497919259

AAhm: supply and demand we have been told was driving up prices, apparently the reverse is not true then?

by skudiv | 20th Jun 17, 7:24pm 1497943483

Define "market equilibrium"

by iconoclast | 20th Jun 17, 7:55pm 1497945344

Here you go

Equilibrium of supply and demand
The equilibrium price is that price at which the quantity willingly supplied and the quantity willingly demanded are equal. Competitive equilibrium must be at the intersection point of the supply and demand curves.
At this equilibrium the price is stable.

by dictator | 20th Jun 17, 12:49pm 1497919798

Of course this is just an inflection point prior to more 20% yoy increases in price. Nah.

This crash is in slow motion which is as you would expect for the property market. You should also have a look through the prices in those auctions, it's nothing like last year. You seem misinformed, and maybe a bit on the side of pump and dump.

You claim that property owners are choosing not to sell. Well there's over 10,000 choosing not to sell in the Auckland region. That's a whole lot of choosing.

by Ex Expat | 20th Jun 17, 1:37pm 1497922631

I expect many property owners will sit tight in a weaker market. However, those that need to sell due to divorce, debt or death will likely have to accept that weaker buyer demand will result in a lower price.

by MisterB | 20th Jun 17, 10:05pm 1497953155

when sales volumes decline as stock for sale increases, what do you think will happen? Of course they will choose not to sell, but presumably there is a motive to sell and perhaps that motive becomes more urgent if the loan becomes harder to service.

by CJ099 | 20th Jun 17, 1:09pm 1497920955

Actually it's just very simple math Zachary, in you don't have the equivalent sales volumes then at the top end then prices naturally fall. It's not rocket science.

by skudiv | 20th Jun 17, 7:32pm 1497943937

Then why are prices not falling?

by Double-GZ | 20th Jun 17, 7:33pm 1497944017

Because there is only one way it can go, and that is UP.

by CJ099 | 20th Jun 17, 10:16pm 1497953815

No one is stopping you from investing in property DGZ. In fact I very much recommend that you Zachary, Tothepoint and all the other ponzi property scheme pushers should just go for it and buy as much as you can at auction.

Since you guys are all so sure that prices can only go up, just take a look at Tothepoints none existent figures that he still hasn't bothered to share with the rest of us to prove his point.

by NorthernLights | 20th Jun 17, 5:04pm 1497935044

That's Zach alright !
I think you call people who sell at peak of market Smart

by iconoclast | 20th Jun 17, 7:58pm 1497945535

Zackery:

Professional traders who trade for a living in big numbers consider volume leads price

by Zachary Smith | 20th Jun 17, 8:08pm 1497946107

Yes but we are not talking about Pork Bellies.

by CJ099 | 20th Jun 17, 9:43pm 1497951835

Yeah tell that to the Canadian's. B.C alone has lost Over $10 Billion in property sales revenue this year since the Chinese foreign buyers became dramatically reduced.

Better Dwelling article: BC Real Estate Sales Fall By Over $10 Billion YTD
https://betterdwelling.com/bc-real-estate-sales-fall-by-over-10-billion…

Article Quote: Year To Date This Adds Up To $10 Billion Less Than Last Year

The drop in sales have been adding up to a massive decline when looked at year to date. From January to the end of May in 2017, there were 43,158 sales. This is a 20.7% decline when compared to the same period last year. The total dollar volume of residential sales in the first five months of 2017 added up to $30.62 billion, a 25.2% decline from last year. The numbers are still huge for a province with less than 5 million people, but the $10 billion decline in sales volume is nothing to sneeze at.

by Zachary Smith | 20th Jun 17, 10:43pm 1497955424

That's an interesting link CJ099. An excerpt:
Real estate prices are moving higher across BC, just not as fast as locals are probably used to seeing. The average residential sale price was $752,536 in May, a 4.2% increase from the same month last year. Greater Vancouver had the highest average prices at $1,110,376, a 5.2% increase from May 2016. Victoria saw the largest jump in average sale price at $674,237, a 15.1% increase from the same time last year. All districts but Northern Lights saw the average sale price increase.

Who really suffers from a decline in sales volume? Lawyers, stagers, developers and RE agents I guess. Well these folk are probably used to the typical ups and downs of this "industry". For ordinay folk it doesn't have much of an impact. The market cannot always be hot.

Don’t Expect Vancouver Real Estate To Turn Negative For At Least 16 Months

by CJ099 | 20th Jun 17, 10:48pm 1497955709

Nope Zachary you're still missing the -10 Billion headline aren't you not surprising because you're so NOT seeing the bigger picture! Do the math, how foolish can you get?

BC Real Estate Sales Fall By Over $10 Billion YTD
https://betterdwelling.com/page/2/

by MisterB | 20th Jun 17, 10:07pm 1497953240

Anyone ho sold late last year would be smiling pretty widely right now. Cant be said of anyone who purchased at said time.

by skudiv | 20th Jun 17, 7:21pm 1497943280

"It's not the sale price that matters................" LOL wut┐¿

by Boatman | 20th Jun 17, 11:33am 1497915222

North Shore sales sluggish , well well ........ thats possibly a good indicator as to who has left the market .

Its hopelessly overpriced anyway , in my view .

by Independent_Observer | 20th Jun 17, 11:35am 1497915306

Wouldn't be buyers with Chinese sounding names by chance would it....?

by tothepoint - d… | 20th Jun 17, 11:38am 1497915533

It may be that certain nationalities have slowed down with their house purchases - but neither are they selling.....

by mfd | 20th Jun 17, 12:33pm 1497918812

I'd be fascinated to know what data source you're basing this statement on.

by MisterB | 20th Jun 17, 10:09pm 1497953378

Wishful thinking hoping for a bounce in commissions i presume

by NorthernLights | 20th Jun 17, 5:09pm 1497935395

NShore sales sluggish
Well that's great to hear May the contagion continue

by Chairman Moa | 20th Jun 17, 12:04pm 1497917066

"It's just a short blip, you'll be fine.." email from my trusty RE.

by Groen_mamba | 20th Jun 17, 12:36pm 1497918971

My RE email reads: ""there's now a supermarket's worth of choice for those ready to buy"

by tothepoint - d… | 21st Jun 17, 5:21am 1497979286

But, alas, Groen_mamba, when you research the preferred locations, there's very little to pick and choose from.

Go have a look through the current listings (realestate.co.nz and TradeMe) for Ponsonby, Herne Bay, Freemans Bay, St Mary's Bay etc. There's actually very little to be found right now. Much less, in fact, than this time last year. And most listings seem to be apartments. So if you want a 2/3/4brm HOUSE, then it's slim pickings.

I'd love to buy the much-coveted "charming villa, north-facing, drive-on and close to Ponsonby Road" - but at a heavily-discounted price. Is that likely? Afraid not.

I'm sure, however, that if I went to a less-preferred locality there would be plenty of properties available and I'd be able to negotiate prices down a bit. But not interested in such localities.

What's new?

by MisterB | 20th Jun 17, 9:59pm 1497952777

#pretentiousdrivel.

On one post you say the market is strong and sales volume has no influence on price and on the other you say that if the location isnt herne bay then you can get it for a steal.

I thought youve previously said you werent RE?

by mja | 20th Jun 17, 2:48pm 1497926898

We are looking to upgrade in the Wellington region, ideally Seatoun area, in the 1.5 million plus range and there is bugger all on the market. I have noted the number of listings in Wellington on trademe has fallen from 2050 to 1690 over the last 3 months. The number of listings in Auckland has fallen from 11400 to 10400. The listings in both regions are falling week by week, so the demand is out there.

by dictator | 20th Jun 17, 3:14pm 1497928489

There's slim pickings anywhere around the CBD despite the higher prices. Unfortunately the condition of a lot of the houses I'm typically not impressed with either. Usually a lot of maintenance needed.

by tothepoint - d… | 20th Jun 17, 3:55pm 1497930910

Hi mja,

You have my empathy.

The Wellington house market may have slowed down but from what I've been hearing from friends, there's still a dire shortage of good family homes in the preferred (city) suburbs.

I know someone who's been looking in Brooklyn for over a year - and she still hasn't been able to get into a good 2/3brm house. She's tendered for two (or three?) properties but each time they've fetched prices far in excess of expectation. Brooklyn might be having its own boom at the moment??

Keep looking! $1.5m should get you something good in Seatoun.

by NorthernLights | 20th Jun 17, 5:11pm 1497935474

Wellingtons gorgeous just not the storms& wind & polticians

by Double-GZ | 20th Jun 17, 6:03pm 1497938601

To be honest if you're over 40yo. and do not have a net equity of over $3m you shouldn't be living in Auckland.

by tothepoint - d… | 21st Jun 17, 4:54am 1497977693

Hi Double-GZ,

A millionaire three times over does seem a bit excessive. I wonder how many Auckland households (with occupants aged over 40 years) have amassed $3million net??

But I take your point: it's a rich persons' city.

As always, we all need to cut our cloth in accordance with our income/wealth.

by Double-GZ | 20th Jun 17, 6:33pm 1497940437

I mean for a couple, so $1.5m net each ;-)
If you are a couple below 40y.o. without $3m net worth then you can still live here but you have to work hard and stop drinking espresso coffee and eating avocados.

by PocketAces | 20th Jun 17, 6:37pm 1497940661

I expect you are champing at the bit to get picking up your own rubbish, sweeping your own street and if you don't already, mowing your own lawns etc.

by swapacrate | 20th Jun 17, 7:58pm 1497945492

DGZ I could think of so many things here. But Im just glad I dont know people like you. Probably why Im moving back to the country, no disrespect to city people, as I loved the city when I was single and had no kids. But the country I find more relaxing and down to earth.

by MisterB | 20th Jun 17, 10:14pm 1497953664

Im fairly confident based on rbnz data that there are not as many households with $3m plus net equity as you imply. Given Aucklanders have largely used increasing value and equity to increase debt for invstment properties, new vehicles etc. just extrapolate the data....

by MisterB | 20th Jun 17, 10:00pm 1497952845

Auckland listings are still about double where they were last year... miles ahead of any time in a decade, i heard

by Yankiwi | 20th Jun 17, 1:24pm 1497921852

An interesting article to look at below... of course, it is US centric. Of note, it discusses the effects of credit tightening and the possibility for home prices returning to affordability as based on income and earnings instead of easy credit availability. Some of this may be applicable to portions of the NZ property market...

http://www.zerohedge.com/news/2017-06-19/hanson-housing-bubble-20-end-n…

Bottom line: The Fed, during Obama, did everything in its power to surge all asset prices — stocks, bonds, real estate, collectables, et al — with no regard for its own guidance, as to when it would take its lead-foot off the accelerator. Now, under Trump, they are doing the exact opposite; looking “through” all the obvious coincident and near/mid term, economic weakening trends in an effort to raise rates as quickly as possible. If, the past 8-years of a Fed in Armageddon-mode created the “everything bubble” (hat-tip Wolf Richter), what will shifting monetary policy into reverse do to said asset price levels?

by dictator | 20th Jun 17, 1:40pm 1497922820

I think the Fed rate increases will have an impact, I suspect their balance sheet sell off will be conservative based on the statements they've released. There's still a lot of money in the financial markets that's been pumped in for a long time. It's going to take a while to soak up that money. There will be complications from the EU and Japan continuing to pump money and debt. I suspect the price falls in assets will get a bit painful.

by mja | 20th Jun 17, 2:53pm 1497927193

Disregard price relative to median/ average wages. Compare to the median household income of property owners. Property ownership rates are falling and likely will continue to fall as world population increases and technology drives increasing income/ wealth disparity. The income of someone who stacks shelves in a supermarket or works in a service station is irrelevant in the calculation of property affordability, the world has moved on and these metrics are meaningless.

by Yankiwi | 20th Jun 17, 3:08pm 1497928136

The "let them eat cake" mentality...

Not sure if I am ready to go long on concertina wire as yet.

by NorthernLights | 20th Jun 17, 5:16pm 1497935760

Five points for getting the word Metrics in a sentence maj sorry mij

by fat pat | 20th Jun 17, 9:48pm 1497952115

Technology /globalisation driving income and wealth disparity? NO! That’s an excellent con by neoliberals because there’s nothing you can do about progress. I think it’s actually neoliberal governments with their laissez-fair economics driving the inequality. It certainly seems that way in New Zealand.

The great thing is you can do something about it. Vote for a non-neoliberal government that cares about it's citizens, as apposed to a government that only cares about the top 0.1%

by NorthernLights | 20th Jun 17, 5:13pm 1497935631

Yankiwi
Oh indeed the RE spruikers here seem oblivious to the world economic situation
They are cosy wrapped up in their superiority in Auckland RE bubble !

by Kakapo | 20th Jun 17, 7:00pm 1497942014

Guys! Guys!!!

I found some filthy house porn for the chipboard-humping Auckland McMansion freaks.

Enjoy, real estate obsessed weirdos.

http://www.mcmansionhell.com/dank

Soon we can aspire to this level of architectural magnificence in Kumeu.

by dictator | 20th Jun 17, 7:14pm 1497942879

There's a similar page that points out the problems with the mismatching windows, etc. Some of the places are so ugly that your eyes will bleed.

by Kakapo | 20th Jun 17, 7:17pm 1497943035

Peel-off quoins!

by moa man | 20th Jun 17, 7:16pm 1497942981

Sounds like case of green eyed envy on your part to me.
You live in a cardboard box?

by dictator | 20th Jun 17, 7:17pm 1497943055

You obviously haven't looked at the link or any of the houses before commenting.

by moa man | 20th Jun 17, 7:21pm 1497943311

Well no. You are wrong.
I did.

by dictator | 20th Jun 17, 7:22pm 1497943365

Some of these houses are a crime against humanity.

by Kakapo | 20th Jun 17, 7:26pm 1497943600

These are cardboard boxes. Just very, very pretentious ones.

by Kakapo | 20th Jun 17, 7:27pm 1497943664

Ooops double post. Insert joke about non-structural plastic Corinthian columns instead.

by mja | 20th Jun 17, 8:10pm 1497946258

Yankiwi, just making a real world based observation that makes sense from a statistical perspective. I think it sucks that hard working people in lower socio-economic areas may never own their own home, but my opinion will not change how the world works. I made the comment as doom merchants keep pushing this price to income ratio number, that will never return to a ratio of median house price of 3-4 times the median income. The world has changed there are more incomes per household as women have increasingly entered the workforce and retirement is delayed, tax rates have fallen (ratio is base on gross income and you get to keep a larger percentage of 50 or 100K than you would have in the past) and home ownership rates are falling around the world. Concern is if we have a recession, and the ratio falls to 5-6 and first home buyers sit on the sidelines as they read rubbish from muppets who have never made a dollar in the real world and miss out yet again as they wait for prices to fall to these unrealistic ratios.

by swapacrate | 20th Jun 17, 8:12pm 1497946332

Maybe we can get our children to work as well, this will raise our income per household and raise the house prices so we can push homes further out of reach for all those numpties who are listening to muppets.

As for unrealistic ratios. I contract in the UK the only mortgage I could get was 3.75 times income even though I can easily afford more. Im happy with 3.75 times, as interest rates will rise, I will still be comfortable and happy. Why is 5 to 6 times income the norm in NZ, this seems ridiculously high.

by mja | 20th Jun 17, 8:22pm 1497946942

Ratio is higher in NZ for a variety of reasons. In NZ construction costs are higher, houses on average are larger and have more land per dwelling unit. New Zealand homeowners have a higher net worth than UK citizens as tax rates are lower and there is no capital gains tax so it is easier to accumulate wealth, hence NZers on average have larger deposits. A mid terrace unit in Invercargill would probably be at your desired ratio of 3.75 times income and comparable to most UK cities.

by swapacrate | 20th Jun 17, 8:29pm 1497947348

Its not desired it is what it is. I dont make it up. I think NZ banks do not have sound principles behind their lending, like the UK.

So your telling me that in NZ we make more money then in the UK and people can afford greater then 6 times income. I can tell you I earn way more then I earn on the NZ peso. I earn't over $120K in NZ and life was a struggle. I have lived in both countries for a large period of time and NZers do not have "higher net worth than UK citizens". Not my friends over here, thats why they are staying and not going back to NZ. I miss the surfing and beach life so I will be back, but I have to get my start-up working first before I can ever afford to come back to NZ.

by theglc | 20th Jun 17, 9:28pm 1497950895

got to say that its a pisspoor clearance rate, take Whangarei out ofn the equation and it looks even worse.

looks like June is going to be another bad month for sales, prices will follow!