Sales on a third overall at Barfoot & Thompson's latest auctions

Property

Auction sales rates ranged from 18% for west Auckland properties to 44% at the Manukau auction

10th Jul 18, 9:39am by Greg Ninness

Barfoot & Thompson achieved overall sales on exactly a third of the properties at their latest auctions.

The agency marketed 96 residential properties for sale by auction last week and sold 32 of them, giving an overall clearance rate of 33%.

The highest sales rate was at the Manukau auction, where 25 properties from south and east Auckland were offered and and 11 were sold, giving a sales clearance rate of 44%.

At the North Shore auction sales were achieved on exactly a third of the properties, while at the Shortland St auctions the sales rates ranged from 40% on July 4, when most of the properties offered were from central suburbs such as Remuera, Sandringham andf Mt Eden, to 18% on July 6, when most of the properties offered were from west Auckland.

Details of all the properties offered are available on our Residential Auction Results page.

**Barfoot & Thompson Auction Results 2-8 July 2018**
Date	Venue	Sold	Not Sold	Total	% Sold
2-8 July	On site	1	4	5	20%
3 July	Manukau	11	14	25	44%
3 July	Shortland St, CBD.	1	2	3	33%
4 July	Shortland St, CBD.	4	6	10	40%
4 July	Pukekohe	1	2	3	33%
5 July	North Shore	9	17	26	35%
5 July	Shortland St, CBD.	3	10	13	23%
6 July	Shortland St, CBD	2	9	11	18%
Total	All Venues	32	64	96	33%

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62 Comments

by Nzdan | 10th Jul 18, 9:48am 1531172906

Spring is upon us guys, it's confirmed.

by Retired-Poppy | 10th Jul 18, 9:55am 1531173350

TTP, a 58% ooops I mean 33% clearance rate for Auckland suggests the market remains active, with a reasonable degree of buyer confidence - especially given mid-winter? Nope

by Nzdan | 10th Jul 18, 9:58am 1531173520

It's mere oscillations. Good properties will always sell well.

403/72 Nelson Street City Centre sold for $398,888 wonder where the buyer was from?

by moneyphobe | 10th Jul 18, 10:52am 1531176772

don't be a 8er

by Nic Johnson | 10th Jul 18, 6:17pm 1531203461

Does anyone know how much Barfoot & Thompson charge to take a house to an unsuccessful Auction? I presume that there are marketing costs that are separate, but what is the actual Auction charge? I presume it's not a no sale no fee arrangement!

by Zachary Smith | 10th Jul 18, 6:32pm 1531204337

Barfoot & Thompson don't charge for auctions although marketing can cost three or four grand.

by Nic Johnson | 10th Jul 18, 8:21pm 1531210875

so you'd expect vendors to be reasonably committed then if they're fronting up 'three or four grand'... blimey there must be a few people who really are waking up to a new reality then... I think vendor pays is good, they should pay every 3 months for the effort of the agent.... how many times do they pay though before realising their ambition is knackered.... Anyone remember 'Back to the Future?' That's what happens, remove foreign buyers next month and NZ property pretty much goes back to 2012 ---- add an Australian banking crisis? 2006/07 were high prices so do we end up at 2001 or 2002..... and a dollar rate back at levels that encourage people to emigrate and live rather than speculate and launder.. Interesting times indeed...

by PaulO | 11th Jul 18, 2:37pm 1531276635

My folks listed and sold with Barfoots late last year. The marketing package started at a bit under $3,000. Mention that they were going to see what Harcourts and Ray White could offer had the price down to $800 5 minutes later. That got them ads on TradeMe and RealEstate, sign out the front, brochures etc. In other words, the marketing fee IS negotiable!

by NorthernLights | 12th Jul 18, 4:37am 1531327073

3 or 4K ? Gee I was asked for a cool 11K during the boom time but of course said no

by Sleepyinvestor | 11th Jul 18, 7:19am 1531250349

Harcourts are about $3000 for marketing and $500 for an auction.

by tothepoint - d… | 10th Jul 18, 1:04pm 1531184691

Hi R-P,

Obviously, you haven't been keeping abreast of Greg's auction reports here.

If you had, you'd know that auction clearance rates in Auckland have crept up over the past few weeks. They're now more often in the 30%-50% range than in the 20%-30% range.

In fact, some have recently exceeded 50% - a level not recorded for quite some time.

So while the housing market is generally flat and it's mid-winter, it's far from dead.

TTP

by Retired-Poppy | 10th Jul 18, 5:58pm 1531202294

Poor old TTP. This is best described as a inconclusive standoff, with a much slimmer chance vendors will be rescued with their lofty expectations intact. With Australian house prices in full retreat, they still have a higher clearance rate!

Earlier today you conveniently missed today's 90s @ 9am where it was reported "In Australia, new data shows the growing travails of their housing market. They may be selling about 50% of houses that come to auction (New Zealand is about 35% success rate"

At 35% success rate, what's this tell you about how unrealistic NZ vendors currently are?

I think your early spring lift is broken ;-)

by NorthernLights | 12th Jul 18, 4:41am 1531327284

TTP I think the prices need to drop a lot before I’d consider a purchase
Time will settle things

by Nic Johnson | 10th Jul 18, 6:42pm 1531204926

Nzdan. I very much doubt it, the property zombies will be very much out in force after this 33%, have the buyers left the country result? They'll counter with claims of a robust market because one house sold to a money launderer, but what happens when the legislation goes through? what happens when the banks stop playing music and make you have to sing to re-finance? How does a 7 times mortgage fit into a 5 times criteria to borrow? How expensive is interest only when the banks want equity and some commitment to re-pay..... because they have too?

Have you ever seen 'White Walkers' in Game of Thrones and thought that some of them looked a bit like babyboomers who'd been eating and drinking too much off the hard work of others.... Pale, slightly plump figures with dark rings around the eyes and slightly flabby around the jowls... It's nothing to do with being born in the 40's and 50's..... or age infact, it's because they aren't sleeping very well anymore and have realised that you're not meant to have big debts as you get close to 70..... Particularly when the market starts tanking...

How many are waking up and realising that they are not as well off as they thought they were? I reckon there have been a lot of bad bets made on the Tau-wrong-en market as a start, that will come home to roost in the next years if anyone is looking for a market to take 40% off.... I'd say the same for a few other locations that could be considered retirement spots, but where there is too much leverage for the market to stay where it is and allow someone to retire...Oh how the regions got sucked into the borrowing culture.

Spring isn't here yet Nzdan, Summer has finished, but it did last 9 years, we've got to run through Autumn first....before Winter. Has anyone seen how cheap second hand boats are getting at the moment?

Beware of the property zombies in the meantime and make sure that they don't turn you into one.... nothing but a crappy existence in that camp for the next few years so be safe and don't touch their rubbish with a barge pole..

Stay warm, keep safe and conquer the crash!

by Nzdan | 12th Jul 18, 8:10am 1531339816

I was being sarcastic. But i do agree with what you're saying. I'm looking forward to watching what the next few years brings. If there is a serious crash we will be fine, our mortgage is so small I could service it on the unemployment benefit.

by muzled | 10th Jul 18, 9:55am 1531173352

76 Castor Bay Road, 5BR, 3 bath, 600 sq m, CV of $2.33M and sold for $3.18M.

Are people out of their minds?

by Nzdan | 10th Jul 18, 10:02am 1531173720

Looks like a really nice property.

https://www.barfoot.co.nz/758397

by muzled | 10th Jul 18, 10:06am 1531173991

Yes, I don't disagree, but three point two million dollars nice?

Great views and many many bathrooms but $3.2M?

Maybe I'm just totally out of touch...

by Mrs The Point | 10th Jul 18, 10:48am 1531176527

Definitely too many doll hairs.

by realterms | 11th Jul 18, 11:16am 1531264605

wow. yeah, somebody lost their mind on this one. I go past there every day, watched that house get built a couple of years back. I never would have dreamed somebody would pay $3m for it.

by Double-GZ | 10th Jul 18, 12:42pm 1531183338

I agree. Castor Bay does not deserve $3.2M. Don't ask me who does!

by tothepoint - d… | 10th Jul 18, 1:12pm 1531185175

The Castor Bay sale definitely can't be........

........because Retired-Poppy says there's no buyer confidence in the Auckland housing market.

TTP (-;

by Tui12 | 10th Jul 18, 10:00am 1531173605

That’s a very suspect buy and not likely by locals.

by Yankiwi | 10th Jul 18, 10:28am 1531175322

.... look at the excellent clearance rate on the latest CBD auction! 18%!!! Definitely showing increased demand for CBD properties.

/sarc

For the math challenged, the four CBD auction results equate to a 27% clearance rate. Trending back to the recent norms...

by gingerninja | 10th Jul 18, 10:32am 1531175552

Taste is a weird thing. I think that house is ugly is as sin. Really dated noughties style interior that I didn't even like in the noughties let alone now. Ugly dated glass ballistrades on the stairs, ugly crushed velvet effect carpet. Ugly modern kitchen with naff garish splashback, same old boring staging that makes 80% of homes up for sale in Auckland look exactly the same. No soul. No character. Poorly maintained grass.

It has nice views.

3 million seems hella steep.

by Double-GZ | 10th Jul 18, 12:21pm 1531182082

gingerninja, one thing we have in common...we love character :-)

by Houses Overpriced | 10th Jul 18, 1:57pm 1531187854

Character you definitely are

by Narrabeen Boy | 10th Jul 18, 11:39am 1531179593

A friend of mine is moving to Auckland for a job in a few months and has seen a place in Grafton that he's keen on.how has that area been performing lately?

by Double-GZ | 10th Jul 18, 12:23pm 1531182187

I love Grafton. It's close to K'Rd on one side and Newmarket on the other. Also it is well served by public transport and the hospital is right there. Your friend can also go for his jog/walk at the Domain. Last but not least, it is in DGZ!! it has everything really ^^

P.s. go to Little & Friday for lunch in the weekend #yummy

by theglc | 10th Jul 18, 12:23pm 1531182204

Pathetic clearance rates resume as anticipated...

Sorry TTP but its still looking frosty from where I sit

by tothepoint - d… | 10th Jul 18, 1:14pm 1531185292

Hi thegic,

Then move your backside out of your fridge.

TTP

by theglc | 10th Jul 18, 2:05pm 1531188328

Clearly you are conceding to the fact that auction clearance rates are still rubbish

You might want to get some mittens for the long winter ahead

by Tui12 | 10th Jul 18, 12:40pm 1531183212

I agree its astonishing that someone would pay that for a place in Castor Bay. Look at what you can get in Sydney for way less there is no comparison https://www.domain.com.au/156-boundary-street-paddington-nsw-2021-20144…

by HeavyG | 10th Jul 18, 1:16pm 1531185389

Isn't Sydney full of Aussies?.. That could explain the low price.

by saving_for_aus… | 10th Jul 18, 4:00pm 1531195200

Everyone always make that lame joke when people here mention how much better Australia is.

Sydney is full of people earning more money and paying less for groceries.

by HeavyG | 10th Jul 18, 5:15pm 1531199757

Who also happen to be dickheads.

Try and keep up... Or make the move now as you'll clearly fit right in over there.

by tothepoint - d… | 10th Jul 18, 1:25pm 1531185910

The reality is that if buyers are keen enough they'll pay the price.

There have been numerous houses in Auckland that have sold for eyebrow-raising prices recently - and not just in DGZ.....

For instance, a house in Freemans Bay changed hands for over $11,000,000 a short while ago.

Who pays sums like that - if they don't feel confident about the market??

TTP

by mfd | 10th Jul 18, 1:32pm 1531186347

Someone with quite a lot of money who wants a house?

by Houses Overpriced | 10th Jul 18, 2:01pm 1531188082

Someone with not much brains but ended up with lots of money

Or money laundering

by moa man | 10th Jul 18, 2:14pm 1531188870

Cheap shot.
Just because you can afford to buy something, that doesn't make you a crim.

by Houses Overpriced | 10th Jul 18, 2:25pm 1531189508

I said 'or'

by theglc | 10th Jul 18, 2:06pm 1531188387

classic diversion from the fact that auction clearance rates are still pathetic

by HouseHunter | 10th Jul 18, 1:37pm 1531186649

30 Castleton Drive, Mellons Bay https://www.bayleys.co.nz/1851157
This one sold for $275k above RV... also not sure why?

by Nzdan | 10th Jul 18, 2:21pm 1531189305

It was the tile splashback in the kitchen.

by Hari | 10th Jul 18, 1:42pm 1531186940

I am actively looking for my first home in Auckland.
Been to Hibiscus, Swanson, Hellensville, Papakura, Takanini (yet to see Pukekohe side)

There is a mad rush for new builds, correct me if I am wrong but the news that Foreigners are exempt from new build has caused that rush

by Houses Overpriced | 10th Jul 18, 2:09pm 1531188564

Not right. .

They are exempted only in developments of 20 or more. . Not just all new builds

by MiniCat | 10th Jul 18, 2:12pm 1531188733

Barfoot & Thompson is ONLY reporting on there business sales by Auction. What they are not saying is that they put use fear tactics or put buyers under duress.

by HouseHunter | 10th Jul 18, 2:18pm 1531189080

What fear tactics are used? I'm new to this, so interested

by Zachary Smith | 12th Jul 18, 7:09am 1531336160

HouseHunter my experience has been that the agent will try and subtly instill fear in the vendor as the auction date approaches. I guess this is not entirely irrational as something major popping up that impacts on the sale is something to be feared if you are keen on selling and moving on. The agent will try and think of as many potential roadblocks as he can and discuss them with you.

Vendors mostly over estimate how much their property is worth, especially in quieter trading times, and vendor expectations need to be managed and instilling fear is pretty much the only tool in the toolbox to reduce price expectations. How is instilling confidence or complacency going to achieve that?

Someone told me and I'm inclined to agree that a successful sale at auction is worth about 50k to the vendor because of the reduced stress. Stress that can linger for months. Or periods of exhalation followed by disappointment when contracts fall through.

Look for houses that owners have had for a while, especially landlords. They will be willing to take a hit, which wont really be a hit, as they are still going to do pretty well. A long time without renovation but still sound is proof that the house is fundamentally solid. Paint and cheap fittings are a bit like cosmetics with little substance, hiding a horror beneath.

Avoid houses that someone bought within the last couple of years as they will be trying to get a profit as well as cover the commission and will want you to pay for it. It is a much harder psychological barrier to break through, the loss on a house, than not making quite as much as first expected but still pretty good nonetheless.

Folk that have owned a house for thirty years and moving on to retirement present good opportunities. Their dollar increase will be massive and the house will require a bit of renovation which can often be just cosmetic but will put off other competitors.

by Nic Johnson | 10th Jul 18, 6:13pm 1531203186

not entirely true. One thing that is excellent about Barfoot is that they report their overall numbers every month.
'Scare tactics' - that's a laugh, anyone who has any idea about the state of our banks lending in Australia and what is happening over there should need no 'scare tactics' from an agent... You'd have to be incredibly niave to not be slightly scared about what is going on over there and has recently started over here. Their press has only just started to tell the truth.... Our bank and real estate sponsored media are likely to remain in 'King Canute' state until the proverbial has well and truly hit the fan and is being splattered all over the posh curtains of Ponsonby.

by Double-GZ | 10th Jul 18, 7:26pm 1531207615

This one has been sold by B&T this month. CV $2,100,000. Does anyone know how much it went for? https://www.barfoot.co.nz/758222

by Double-GZ | 10th Jul 18, 7:33pm 1531207983

Another on-site auction. This one on Sunday 22 July with a CV of $2,325,000. Is anyone going to attend? https://rwremuera.co.nz/auckland/remuera/102-arney-road-19126276/

by Double-GZ | 10th Jul 18, 7:43pm 1531208601

This DGZ is a Barfoot auction on 18 July (Shortland St). With a CV of $2,600,000 do you think it will sell above or below?? https://www.barfoot.co.nz/758979

by Houses Overpriced | 10th Jul 18, 8:53pm 1531212828

Do you hear the echo of your voice

by Double-GZ | 10th Jul 18, 8:56pm 1531213011

No I don't coz I'm not in a Thai cave.

by custard | 10th Jul 18, 10:00pm 1531216840

A Minsky moment possibly– Trade Me Auckland Rental Listings currently 4,995 – and looks poised to go through 5,000.

Yes, 5,000 is just a number – but an interesting benchmark – at the beginning of the year it was around 4,000 – so 1,000 additional rentals currently on offer.

Apart from the obvious I have little idea what this is telling us – is it a seasonal thing, is it an “unwilling landlord” development, a bit of both – or something else entirely?

I note weekly rental rates are somewhat stagnant in Auckland – however, should they fall, whatever pitiful yields currently “enjoyed” could well be further weakened.

This market could be full of surprises.

by Kate | 10th Jul 18, 10:36pm 1531218993

Internal migration - Aucklanders leaving Auckland, borrowing and buying in the provinces based on the unrealised capital gains and the expected rental yield of the existing AKL property.

by custard | 10th Jul 18, 10:57pm 1531220266

Well, that should work out well just peachy then.

Can’t imagine what could go wrong.

Oh, excuse me Kate - I think you well can.

by custard | 10th Jul 18, 11:37pm 1531222671

OK – it’s 11.33 – and we’ve hit 5001 listings – it’s a brave new world!

by Nic Johnson | 10th Jul 18, 9:48pm 1531216081

'SHORTAGE' or is it really just 'OVER-LEVERAGE'

by Nic Johnson | 10th Jul 18, 9:59pm 1531216776

sounds less painful for the specu-vestors if you 'mind' read it in French.... Almost sounds sexy, rather than the debt sentence it will be for many...

Hi -ho, Hi -Ho,,,,,,, Hi- Ho, hi-ho it's off to work we go, we thought we've played it really slick but negatively gearing will make you sick, hi ho, hi -ho, hi-ho, hi-ho, it's off to work we go... we thought we'd borrow lots of dosh, but-we-were-to-dumb-to get-the-interest-cost - hi -low.... hi-low. hi-low , hi-low, hi-low, hi -low- how low will it go?

by Double-GZ | 11th Jul 18, 10:08am 1531260522

OMG Queenstown area house prices drop $67K from March to May.
https://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=12…