The auction room was packed for Ray White City Apartments' first auction of the year

The auction room was packed for Ray White City Apartments' first auction of the year
An apartment in the Metropolis building in Auckland sold for $523,000.

Activity in the auction rooms is slowly starting to wind up again after the Christmas break. However the number of homes being auctioned remains low, and it is likely to be February before we see significant levels of auction activity again.

Nonetheless we have the latest results from Eve's Real Estate in the Bay of Plenty where there was a solid offering in their auction rooms last week. We also have results from Barfoot & Thompson's main auctions in Auckland, where the results were a bit mixed.

Probably the liveliest auction of the new summer season so far was at Ray White City Apartments' first 2018 auction where the room was packed with hopeful bidders.

Eight apartments were scheduled for auction, but one was withdrawn from the auction at the last minute and another had its auction date postponed. That left six under the tender care of auctioneer Ted Ingram.

There was a good mix, with a couple of studios, an apartment in the Metropolis building, a mix of other units in the CBD and a larger unit on the CBD fringe.

There were multiple bidders on all six units and four were sold under the hammer with the remaining two passed in for sale by negotiation.

At the same auction a four bedroom house in Avondale was also offered. Although there were multiple bidders for it and the bidding was competitive, it was also passed in for sale by negotiation.

Details of the individual properties offered and the prices achieved on those that sold are available on our Residential Auction Results page.

On the commercial and rural property fronts Colliers kicked off the New Year with the sale of a low rise office building at Manukau, and a large dairy farm in Hawke's Bay. The details of these sales are available on our Commercial Property Sales page and our Rural/Farm Property Sales page.

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Auctions are so deja-vu.

I now pay much less attention to auction "clearance rate" statistics, as "by negotiation" has become the preferred method of buying/selling houses in Auckland (and the rest on NZ).

A heavy focus on auction data can mislead as to what is really happening in the housing market.

TTP

What I like is that when house prices are sky rocketing Auctions are pumping with all and sundry outbidding each other pushing prices up, and then when they have bought the property they think they have won.

So subdued bidding and going to negotiation is a good thing.

I think the fact you can't throw a for auction sign on a rotten dogbox and have 20 people bidding on it anymore is exactly representative of what is happening in the property market.. its cooled, and many houses are being offered below the new CVs to try to move them.

Don't let facts get in the way of your opinion.

Auction data is just noise...

Hi moneyphobe.

Yes, noise - and white noise at that.

Whether auction clearance percentage is up, down or sideways on any given day is meaningless.

TTP

Oh, I don't know. I suspect there's been a correlation between clearance rates and house price rises over the last few years - when clearance rates were routinely 80-90% prices were flying up, now they are lower prices are creeping along. Definitely doesn't tell the whole story but it's another piece of the puzzle. The desperate buying at any cost that drove prices up so fast seems to have gone.

That's correct. There is definitely a correlation. It's a mathematical certainty. +

More useless noise from the property spruikers. We are able to work out that a decline in auctions does correlate to a decline in house sales.

Property spruikers are funny.

When auctions are hot and clearing 80% to 90% of the time, then "the only way property going is UP!" and you're a loser if you don't buy via auction. Prices will only go up as long as clearance rates remain high, they say.

But now that clearance rates are low, then auction results are just "white noise". We shouldn't be paying attention to the results as they are not indicative of the market.

Make up your mind, spruikers!

Party's over. Get ready for the hangover.

The party is definitely not over. Get ready to Rock N Roll DGZ property prices YEEHA!!

I get the feeling the party is not over. The banks, by lowering their interest rates, have just cracked open another beer.

Well Zachary, I’m not sure if the party isn’t over– but am very sure another beer will not solve anything.

Early days in 2018 – no matter, drink up apparently, really, when will the adults step in?

Certainly an interesting year in store.

Some good results in these auctions.Two houses look like great bargains until you see that one is badly damaged by fire and the other is right under pylon wires in Otara. Excluding those the houses sold on average 4.5% above 2017 CV.
The good turnout at Ray White may have something to do with a longer period between going on the market and auction day. Many people see a place they want to buy but the auction is only a few days away so they don't get a chance to bid. A six week campaign may be better.

Zach have a look at this Q4 report! http://online.flipbuilder.com/wpkq/vzqz/#p=8

For what it’s worth, and to be honest I think numbers wise it’s superficial nonsense – but 15/01 Auckland houses for sale 10,202 on trade me – today 10,777 with much use of “urgent” etc.
Marketing blather I think.
In terms of the economy, interest rates and employment – there is little that is obvious to cause derailment.
Thus, for those of a positive persuasion, keep calm, and carry on investing.