One in three sell at Barfoot & Thompson's auctions

Property

Winter is taking its toll on the number of properties being auctioned

7th Jun 18, 9:55am by Greg Ninness

Winter is starting to bite into the number of homes being auctioned, with Barfoot & Thompson marketing 139 homes for sale by auction last week and achieving sales on 45 of them, giving an overall sales clearance rate of 32%.

The highest sales rate was at the Shortland St auction on 29 May where 10 properties were offered from a mix of suburbs ranging from St Heliers to Massey and sales were achieved on five, giving a 50% sales rate (see chart below).

At the Manukau auction where properties from throughout south and east Auckland were offered the sales rate was 31% and at the North Shore auction it was 38%.

But at the Pukekohe auction none of the 10 properties offered was sold and all were 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.

**Barfoot & Thompson Auction Results 28 May - 3 June 2018**
Date	Venue	Sold	Not sold	Total	% Sold
29 May	Shortland St, CBD.	5	5	10	50%
29 May	Manukau	11	24	35	31%
30 May	Mortgagee/High Court	0	1	1	0
30 May	Whangarei	0	1	1	0
30 May	Shortland St, CBD.	13	24	37	35%
30 May	Pukekohe	0	10	10	0
31 May	North Shore	10	16	26	38%
31 May	Shortland St, CBD.	5	9	14	36%
31 May	On site	0	1	1	0
1 June	Shortland St, CBD.	1	3	4	25%
Total	All venues	45	94	139	32%

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33 Comments

by Nic Johnson | 7th Jun 18, 10:07am 1528322824

Now we're blaming Winter, it's nothing to do with tightening credit availability, oversupply of property and concerns across the Tasman with a collapse in full swing. It's winter, that's all... and next week if the results are also bad it's because we're nearer a full moon,,, week after, football world cup stopped people going to the Auctions....or are Barfoot Agents struggling to align expectations with reality?

by Clementé | 7th Jun 18, 11:15am 1528326954

Looks to be a nice day tomorrow... 1% chance of rain... so if anyones selling, i'd suggest tomorrow is your best bet for the next few months.

by J.C. | 7th Jun 18, 1:40pm 1528335604

Now we're blaming Winter.....

Too funny. I wonder when Tana Umaga will be blamed for disappointing auction results.

by kane02 | 7th Jun 18, 9:41pm 1528364498

Nah. The banks are pulling back big time now. They have been in expansionary mode up until the last couple of months. Now they are recruiting risk analysts, and turning off the credit tap. Australia has got the executives worried.

by kane02 | 7th Jun 18, 9:42pm 1528364528

by Nic Johnson | 7th Jun 18, 10:09am 1528322960

Did the High Court Mortgagee Auction not even get a bid high enough to cover the mortgage??? Has anyone ever seen that happen before??

by Mrs The Point | 7th Jun 18, 8:20pm 1528359655

Yes, I have been top bidder and the bank wanted more. I declined, hoping they would come around. A couple of days later someone came along and met the banks price. Them's the breaks.

by Retired-Poppy | 7th Jun 18, 10:09am 1528322969

Pukekohe, one of the last speculandlords playgrounds. All that's left is a big fat ZERO!

by tothepoint - d… | 7th Jun 18, 8:30pm 1528360232

"All that's left is a big fat ZERO!"

Retired-Poppy referring to his IQ.

TTP ;-)

by m@tairua | 7th Jun 18, 10:39am 1528324750

NJ, can you provide details of the HC mortgagee auction or a link as this interests me.

by Nic Johnson | 7th Jun 18, 11:02am 1528326154

no idea - just saw it on the list.

by Bluff | 7th Jun 18, 11:14am 1528326878

look i'm just another herbivoure that grazes our lush lands and follows the flock....but I can't understand why vendors accept the AKL real estate industry's push to auction properties. Understandable in an up market but a flat to declining market with clearance ratios such as these it just seems we're being suckered in. Can anyone clarify if they've recently had the "go to auction" pitch from an RE?

by Ezy | 7th Jun 18, 1:15pm 1528334125

The professional auctioneers still need to pay their BMW leases

by Tui12 | 7th Jun 18, 11:17am 1528327022

63 Wellpark Avenue, Grey Lynn is listed at $969k with a CV last year of $1.14M. No interest and passed in.

by Clementé | 7th Jun 18, 11:31am 1528327870

Still winter - dont worry, come mid December people will be falling over themselves to pay 1.3m for it

by Nzdan | 7th Jun 18, 11:38am 1528328334

If they wait 10 years it'll be worth 2.6 million.

by Chairman Moa | 7th Jun 18, 12:54pm 1528332898

Not 10 years, 7 years my trusty RE told me..

by J.C. | 7th Jun 18, 1:43pm 1528335820

Only Ashley Church has the key to the Ark of the Covenant. REAs don't carry the same power and divinity to claim 7 over 10.

by J.C. | 7th Jun 18, 1:43pm 1528335821

Only Ashley Church has the key to the Ark of the Covenant. REAs don't carry the same power and divinity to claim 7 over 10.

by Pragmatist | 7th Jun 18, 11:39am 1528328384

There is a company with a name very similar to the poster you replied to.. I think their catchphrase is the appropriate response to your comment.

by taimaiakka0 | 7th Jun 18, 11:47am 1528328820

How the news is potrayed. Manipulated.

Headline could also be :

68% house went unsold in current Auction.

( Or if concerned about winter which must have come as a surprise to expert though this event happens each year :)

68% house went unsold in current Auction : Is winter the only reason

by CN | 7th Jun 18, 3:47pm 1528343255

You raise a very good point.

The more accurate headline should focus on the majority statistic, not the minority statistic.

Unless the author has a specific agenda to persuade the audience and frame the topic in such a manner ....

by Pragmatist | 7th Jun 18, 12:12pm 1528330346

Somebody might have to do the DGZ treatment to the passed in auctions, see how many are listed with asking prices now and how far above/below CV they are asking.

I just checked three, one doesn't have an asking price,
7/66 Larchwood, listed now at $907, CV is $940k.
63 Wellpark, asking $969k, CV $1.14m.

Don't have time to check the rest, darn work expecting me to do work things at work.

ouch
14 Mcilroy Ave, hillborough, asking $1,095k, CV 1,575k. 30% under CV, for 1247m2 section, surely thats a candidate for subdividing/developing?

by Pragmatist | 7th Jun 18, 3:12pm 1528341167

Gave it a quick poke, rather fruitless exercise. ended up with 18 properties with asking prices that I could be confident of matching the correct CV with. Avoided inner city apartments, no-one gives a damn about those. Includes the three mentioned above
Combined CVs = 18.705 million
Combined asking prices = 17.864m giving average asking price of 96% of CV.
6 asking above CV, 12 asking below CV.

Asking prices ranged from 134% of CV (4 Eversleigh, Belmont, CV 1.675, Asking 2.25m) down to 70% of CV (14 McIlroy)
Cheapest was 1/185 swanson road, brick and tile 2 beddy unit, crosslease, asking $595k (100k above cv)
Most expensive asking was Eversleigh.
Highest CV 1/41 Seaview ave Northcote, CV $2.25m, asking $1.795m( $455k below CV), Crosslease.

Other interesting tidbits:
16 Memorial Park Lane, Hobsonville Village, new build, Mike Greer homes asking $895k, previous buyer failed to settle.
122 Albany Heights road, CV $1.925m, by negotiation, but ad states selling below CV.

Make of that what you will

by Zachary Smith | 7th Jun 18, 9:12pm 1528362743

14 Mcilroy Ave - Looks like there are two or three very good reasons for that asking price. Been in the family a long time so they will still make a handsome profit though.

by Pragmatist | 7th Jun 18, 9:34pm 1528364070

Triangular and relatively steep section, still 30% off cv seems like a fairly hefty discount.

by Tui12 | 7th Jun 18, 2:32pm 1528338762

There is certainly plenty of examples there. At the same time though, there are examples of a few things selling above CV usually in the blue chip suburbs. I noticed old DGZ licker likes to conveniently use the 2014 CV as his new reference point now.

by Wrong John | 7th Jun 18, 3:05pm 1528340708

We had to level out or settle down for a bit, didn't we? The problem with a two-stroke economy is that it tends to be all or nothing. Perhaps we could try working harder & smarter to make money in future. NZ banks have over a quarter of their loan books in residential houses. In USA it's less than 10%. In the UK it's 17%. And if there happens to be any problems on the farm as well, blimey, we could be in for another 7.1. The last one cost us nearly $20B.

by tothepoint - d… | 7th Jun 18, 5:47pm 1528350479

Auction clearance rates in Auckland have risen a bit over the last month or so - as confirmed by the most recent reports on this website........

Of course, this might not be sustained but given the onset of winter it is of undoubted significance - and certainly shouldn't be ignored.

TTP

by Mrs The Point | 7th Jun 18, 9:47pm 1528364826

Hi tothepoint,
You say
"Auction clearance rates in Auckland have risen a bit over the last month or so - as confirmed by the most recent reports on this website........"
Well this is the most recent of said articles and it shows a clearance rate of 32%. So you think this is a significant rise from what exactly?

MTP

by tothepoint - d… | 7th Jun 18, 10:59pm 1528369183

Hi Mrs The Point,

The auction clearance rates reported here over the last 3 weeks are up - including one that hit 50 per cent.

This result is hardly surprising: sales volumes (overall) in Auckland also rose through the month of May.

Time you stopped brooding - and got a handle on what's actually happening.

TTP

by custard | 7th Jun 18, 10:51pm 1528368714

Aren't we supposed to be ignoring auction clearance results in the current environment,,,,??

by tothepoint - d… | 7th Jun 18, 11:09pm 1528369799

Hi custard,

I don't know if anyone has suggested "ignoring" auction clearance results. They still have some (albeit diminished) relevance.

Clearly the market has changed and I'm on record as saying that, "paying too much attention to auction clearance would be unwise".

For example, there are now relatively more sales "by negotiation" notably among higher priced properties - and these need to be considered in any rigorous analysis of what's happening.

TTP