Barfoot & Thompson had an overall sales rate of 32% at last week's auctions but just 12% sold at the North Shore auction

Barfoot & Thompson had an auction sales clearance rate of 32% last week.

The agency marketed 103 properties for sale by auction last week, with 33 of those changing hands by 5pm the day after the auction.

There was an unusually low sales rate at the North Shore auction, where just three of the 25 properties marketed for auction were sold, giving a clearance rate of 12%.

Two of the remaining properties had their auction dates postponed, with the rest being passed in.

At the Manukau auction the sales clearance rate was 30% and in the Shortland St rooms, the clearance rates ranged from 100% for the mortgagee auction to 38% for the auction on 5 July.

Sales were achieved on 36% of the properties auctioned on site.

Go to our Residential Auction Results page to see the prices for the properties that sold, and details of the properties that didn't sell.

Barfoot & Thompson Auction Results 3-9 July 2017

Venue/Date Sold* Not sold* Total % Sold
On site. 3-9 July 4 7 11 36%
Shortland St, CBD. 4 July. 1 1 2 50%
Manukau. 4 July. 6 14 20 30%
Mortgagee/High Court. 5 July.  2 0 2 100%
Shortland St, CBD. 5 July. 11 18 29 38%
North Shore. 6 July. 3 22 25 12%
Shortland St, CBD. 6 July. 2 2 4 50%
Shortland St, CBD. 7 July. 4 6 10 40%
Total 33 70 103 32%
* Sold includes properties sold under the hammer or by 5pm the following day. Not sold includes properties that remained unsold by 5pm the day after the auction, plus those withdrawn from sale or that had their auction date postponed.

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Millwater not selling well?

Rumour is that some RE Agents are struggling to earn a living ! And the rout has not even started yet

TBH agents (salespeople) win either way. A sale of 1.3 mil or 850k still provides a king's ransom...

Not when it takes 12 times a long to sell something

4 words is stretching your ability DubleD
Lightweight ha!

And still they promote the "auction marketing" of properties.. I understand that houses that list with a by neg or a price are often getting multiple offers.. atm.

Auctions are no longer the way to sell your house, the market has changed for a couple of years, the buying frenzy is over and its back to Trade-Me or traditional methods..



Seems that 3% Chinese money has had a really disproportionate effect huh?

Those of us that live on the North Shore and have been on the ground at auctions knew all along it was absolute BS.


....exactly mvgsmf, only 3%... pfffft - my arse

3% lol

If you check who the sellers are, will realize mostly are them and many have bought last year. Cannot say for sure but had checked few for a friend in Pakuranga, bucklandland beach area and all turned out to be Chinese sellers who had bought last year.

May be it is just a coincidence

You do understand though that being Chinese does not equal being a non resident.

Have you met my friends 'migration' and 'breeding'.....

Yes just 12% imagine that ........... tens of thousands of Dollars wasted in flashy brochures and so -called "marketing spend " ( which is seldom properly accounted for ) , glassy advertisements worded by agents who think they are masters of the written word , but written so badly that the Bard would cringe .

Litres of adrenalin wasted in the lead up to and on Auction day ........... and ........... NO SALE!

Watch as this scenario spreads across the bridge as the big wall of apartment builds hits the market. The tap has well and truly been turned off tight for the overseas speculators - now watch the spruckers try and talk this up!

Wow how times have changed. If you think about it the auction results are much weaker the 32% average when you consider that a sizeable lot aren't selling under the auction hammer but mostly through negotiation. Are Vendors still having to pay for auctions, I know it use to be around $500 to cover the cost of going to auction?

CJ099. These are the auction results in percentage terms albeit with a 1 day grace period.

Thanks Cowpat, It's been a few years since I last bought a property at auction here in Auckland. It's just I don't recall there being a 1 day Grace period in the purchase contract. But that might have been due to properties sell act auction more immediately rather than having a 1 day negotiation period.

But back to my question; are the RE Agencies still charging Sellers for the auctions?

CJ099, vendors with passed in properties will still have to be the auctioneers fee. There is no grace period agencies consider a property sold by auction, if an unconditional sale is achieved by 5pm the next day.

That's fine mja, :)

It's just that I had heard that some RE agencies were providing auctions free of charge to encourage people to use that option for selling their homes. Not sure if that's true or not? Which is why I was asking.

Thank goodness we have Demographics to save the housing ponzi, just give it 5-10 years...

Somehow I don't think the bank will be that patient.

I think more like the investors loaning the banks, then the OBR occurs Or more like the Govn steps in and the tax payer (aka Ireland) is stuck with a debt that will take decades to pay off or we'll default on, or we'll end up selling our assets AGAIN to the very last people we should allow to own them.

At least we know for sure National is not philosophically opposed to selling off NZ's most productive land and assets to all comers. That's something.

Rick National has no philosophical objection to anything if it will line the pockets of its party members
After 9 sad years I'm not sure what philosophy National has except open immigration, open multiple entry visas for Chinese, inability to implement a satisfactory solution to Auckland housing,inability to ensure full payment for hospital services by foreigners seeking medical treatment. Oh and my Dr friend here now working with me just escaped from the mismanaged NZ hospital system As for schools the Nats have a long sorry history of operational underfunding to a high degree . All been said before over the past 9 years! Amazing to read kiwis still considering a 4th term for Nats !
Sadly reading the selfish comments by working class property spruikers here over several months tells me these fools will happily vote Nats again in fear of change to their indebtedness.
I'm unsure if I am permitted to write here as DoubleGZ informed me I a 57 yr old kiwi was not allowed !
That's the sorry level of intellect of today's Epsomite I see

Wonder how many 'escapees' are careful to ensure they spend 5 years in NZ after 50 to be able to return and suck on the tax payer funded teat after they turn 65?

Agents have only ever been able to undertake auctions while vendors let them.

Vendors have been pretty greedy (and why not in a rising market) over the last few years and so auctions have been de rigueur.

Now auctions could actively work against vendors, with them not selling on the day, having paid all the advertising costs etc. Then with the agents saying immediately afterwards "We brought you the market, perhaps we need to talk about the price..."

Yes, a classic ploy. Convince the vendor they may miss out if they don't have an open sale process, condition them to an action date, spend the money on a concentrated 3 week campaign then do everything possible on the day to get them to sell, to anyone for any price. Forget about location, location, location it's condition, condition, condition and I'm not talking about the house. We bought our current house at auction in early 2009. The agent/vendor left $25k on the table with that method. No one bid against us and the house didn't reach reserve. We held all of the cards.

Conditioning will work far better against many more vendors today as many will be desperate to sell in a falling market
Conditioning doesn't work well for agents when prices are climbing and vendors know it. Case in point , myself.
The people who are truly stupid aren't the ones conditioned by RE agents but the fools who write here they know everything about property as their portfolio values decrease not increase !
They have no knowledge of socionomics or economics
I doubt they even count their time involved with their rental portfolios as an expense
Alas their families know the cost Lost Time

In the industry parlance it is known as Vendor Conditioning.

The markets doing all the normal stuff, so is the government, so is the RBNZ, the bank and the media, the sooner we get to the stalemate period probably 6 months after the elections the better, no more doubt, prices will correct to wages again, get on with life and direction, I bloody hope we aren't going to do this mad boom bust shit in little old nz all the time , Waste of time for home owners and loan term investors

I change what I said, not everything is normal, the lifting of interest rates from 2015 would have been normal in Auckland but not the rest of the country, and slowed risk, now we have a correction with no help from the lowering of interest rates , could even go up to help save the banks with quite support from the RBNZ

Ever seen those National Geographic documentaries where a shoal of fish suddenly and seemingly inexplicably changes direction ?

Well its never unexplained , there is always a reason , and markets do the same thing , usually the reason is a instinctive perception of danger ahead or that they shoal has gone too far off course .

No, its not inexplicable. One fish farts....


I want to hear those smooth, dolce tones that the Awklund residential property market will carry on "ad-infinitum" with at least 5% capital growth pa ....a constant stream of overseas buyers mini-bussed into Paratai Driive to start with, then taken to the glorious new/existing subdivisions of Dannemora or Millwater, while being told they too will be like Paratai Drive in the near future..... interest rates will not and can not ever rise .....banks are just throwing money around like "lolly water'..... a constant stream of immigants into Awklund will always keep demand constant....we don't need to worry about overseas buyers, as according to Doc N. Smilth they only represent 3% of the market ....we are absolutely the most liveable city in the world, so why would anyone want to live anywhere else......more people are coming to live in Awkland than are moving to the great Mike Hosking proclaims we always "punch above our weight" and housing is affordable to all who live in Awklund as you just need to get off your A** work 85 hours a week and mortgage yourself to the hilt ....truly marvelous. !!!

Now where is that Ted .......ya gotza keep the "property ponzi party" going ?

You might think tothepoint is Ted but I personally don't think he is.

10-20% annual increase in Auckland house prices, for ever and ever, Amen.

The big weakness with auctions is that they try to achieve a sale at a particular hour on a particular day which is like throwing a dart and getting a bulls eye each time . Everything sells eventually, but the all cash buyer for a property on an auction day just wasn't there. They may have been there a week before or a month later but on auction day they were not. In hot markets it is not so important because buyers are plentiful. If however, you want to sell in a slowing market and get the best price then avoid auctions. There is a long list of do's and don't's that gives selling outside of auctions a much greater chance. Happy to tell you all these of wants me to.

I think you are right. I would be very interested in reading such an article.

There is no real news in this article, just another excuse to downtalk the housing market and get people to vent ...
Just a note to put things in perspective for those who don't live or attend Shore auctions:
Attending few auctions on The Shore nowaday helps understanding what is happening, there are very little serious buyers out there, there are plenty of bargain hunters including reasonable amount of Asians and few cashed investors, there is hardly any meaningful bidding, everyone is watching with their hands crossed or in their pockets, almost all are there to gauge the market and see where that auction will lead to ... Auction prices are starting with 25 -30% less than what the presumed reserve price and hardly reaches any meaningful (reasonable) number because of lack of bidding ( including Asians) ... Most Property owners on the Shore are not prepared (yet) to sell for 20% less than what the market value was few months ago...

The houses being SOLD are either getting what they are really worth mostly old and do up stock, or 1990s fibre cement plasterboard in need or re-cladding ( huge job) or some desperate people who need to sell and move on and the low clearance numbers clearly indicate that there are very few of these people who are willing to sell.
So, really this is no news and it will continue until after the election - then we shall see some action

What you're describing is a lead indicator for prices coming down to meet demand. Presumably they go to auction b/c they want to sell, then at some point, they'll actually want to sell.

Yeah, maybe it will if it continues like this over spring and summer .. but this situation started since about march- April.
At any given market condition, Sellers are usually those who have to sell in a narrow window of maybe 6-8 weeks - others who are looking for upgrading or investing will hold back until they find a bargain.
But I agree, this could affect prices negatively if it persists for long.

The election will make no difference. You are dreaming.
Summer may help a little ( pun intended) but when it comes to big ticket items people are very wary.
Fear and Greed drive the market.
Fear is by far and away the the greatest driver of market forces.

I beg to differ BigDaddy, the fear factor now is mostly created by the uncertainty of the election - Other factors have slowed the momentum down too like Winter, Bank lending and LVRs, maybe the offshore money transfers too ... but we would not have seen this kind of severe buying setback and (fear) if the poll numbers indicated the continuation of the status quo like in 2014.

Uncertainty is fueled by the possibility of change of Government and what that could bring with it. .... not so crystal clear who will win this time! let alone having a hung parliament !!

I respectfully disagree with regard to the flow on effects of the coming election.
The other matters you raised do have an influence on the market and go to show what damage can be done and what unintended consequences there are when there is interference with market forces.

The other factor is that it's much harder to raise finance to buy an investment property these days. As example I am on a reasonable good salary working in Aust while maintaining a healthy saving account in NZ. Up until this year, every few months I would get an email from our personal banker asking if we want to finance an investment property in NZ. Last week as a test, I emailed our bank asking if it's viable to raise a mortgage to buy a property in Wellington, I got a big fat NO answer within few hours.

... come on down to Canterbury , guys ... we now have a housing surplus ... and they're still building flat out like a lizard drinking ...

$ 400 000 gets you a decent 3 brm home anywhere around here ...

... and this afternoon , as a free treat , we're throwing in a big sou-wester with the promise of snow ....

Want more ? ... we'll chuck in a generous lashing of sleet for good measure .. woooo-hooooooo !

Sunny 24C here at the moment as at 12:57pm, it was 8C at 7am this morning and we have a huge massive surplus of brand new houses here in Brisbane.. Oh and the Origins is on tomorrow... Great public transport here too.

... I love that massive long tunnel which takes you right under the Brissie CBD ... awesome isn't it , what the Aussies get done ...

And the airport ... so easy peasy to get in and out of .... it's a dream , how they've designed it ...

... gawd blimey... us Kiwis are pretty hopeless by comparison ... Orc Land just can't hold a candle to comparable cities , Brissie and Adelaide ...

And that spectacularly redundant de-salination plant

I just did a three week working stint in QLD; a week on the GC, a week in outer burbs of Brisbane and a week in the CBD. GC is kitsch, tattoos seem to be a requirement, and the local mall was dead at night, outer burbs were a nightmare to commute to and CBD was dead except for the riverside. Food was expensive so was taxi transport. Good luck to you if that's your paradise. Please don't send any children to NZ to sponge off my tax dollar for their education or your super when the time comes.

Dude, you have gone to wrong places.. The Valley is a red-light area and foods are on the expensive side there. James Street is much better!
Last time I was in Queens street Auckland on a Wednesday night, it was full of (homeless) people. St Lukes mall wasn't that much better. And who uses Taxi these days... Keep it up and Uber is legal here!

No choice in locations or transport mode when it's for work. Just observing that there was nothing there suggesting I was up until then ignorant of a paradise on earth. It's different not better, for me.

Having worked overseas, I long ago stopped trying to compare places to live as if I was comparing quotes for a new kitchen. They all had one or more hooks e.g. income, education, commute, environment, language, climate, house prices, options for hobbies. With sufficient saved to live anywhere I chose to live where it suits me, Auckland.

If You, Northern Lights et al want to live elsewhere then it's your prerogative, but endless posting about how great it is where you are living is akin to posting on your ex's face book page that you're so much better off without them. If that was true you would have just moved on.

"Flat out like a lizard drinking?" You're a sailor GBH, or you are close to someone who is...

If people want to pay over priced prices in the OECD then good luck...prices have peaked and further to fall.

I'm sure this has been said many times before in recent weeks .. but a shortage of houses in Auckland or shortage of something else? My how times have changed in such a short space of time.

The north shore doesn't have very good feng shui at the moment.

The time is now right for buyers to demand of vendors LIM reports and Independent Builders Assessments

Kind of think these articles are a little bit meaningless because of small sample sizes, the Auckland wide clearance rate (across all major agencies) would be more meaningful to observe but it needs to be analysed over a longer time period for the trend. And unlike in Australia, auctions aren't the only way people transact residential property so not sure if it is entirely representative anyway. I think the number of properties for sale relative to total transactions is a better lead indicator - which I understand is pointing to a down turn. I am very bearish on resi property so this stuff fuels me with my daily schadenfreude but I just think more robust analytics are required.

The 32% overall clearance rate isnt too dissimilar to what we have seen over the past few months, so this article is not really a big deal.

One thing is for sure and that is that liquidity has been taken out of the market, things are tightening and its hard for owner occupiers to lend high as banks are tightening their DTI, LVRs have an impact for investors who wont be buying in a falling market unless its at bargain price, chinese cash has dried up considerably & US are signaling a further increase to interest rates which has a flow on effect.

I cant see things changing any time soon.

But we are getting more fruit pickers, restaurant workers, sevice station attendents, students all these people can afford $900,000.

NZ is different to the rest of the world, we are an international destination, interest rates wont increase here, DTIs will go to 20 times because households will get there children to work and there dogs. So I predict 5% ad infinitum.

"Anxious' home owners rushing to sell....."
No that's in a much larger market place than ours, but the same banks that provide the funding must be getting a tad nervous about their gross exposures in both countries.....