Number of properties being auctioned down by a third but sales ratio unchanged

Property

The sales rate at the latest auctions was 38%, exactly the same as it was three months ago

28th Jul 18, 10:02am by Greg Ninness

There was an overall sales rate of almost 40% at the latest residential property auctions monitored by interest.co.nz.

Interest.co.nz monitored 152 auctions around the country in the week from 14-20 July and sales were achieved on 58 of them, giving an overall clearance rate of 38%.

An interesting aspect of the market at the moment is that while the number of properties being offered at auction has declined over the winter months, the sales rate has remained remarkably stable.

Three months ago in the week from 14-20 April, interest.co.nz monitored 229 auctions, of which sales were achieved on 86, also giving an overall sales rate of 38%.

So while the number of properties being offered at auction has declined by a third over the last three months, the sales ratio has remained the same at 38%.

In the latest batch of auctions, prices ranged from $240,000 for a three bedroom house at Linwood in Christchurch that was in need of complete renovation or demolition and was sold on an "as is," basis, to $2.506 million for a four bedroom villa with a swimming pool in Remuera, Auckland.

Details of properties from all of the auctions monitored by interest.co.nz and the prices achieved on most of those that sold are available on our Residential Auction Results page.

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18 Comments

by Zachary Smith | 28th Jul 18, 10:47am 1532731640

I'm a bit confused about the statistics showing how long it takes to sell a home. When i put in my suburb, Greenlane, to check the figures I get a median of 22 days to sell for the year ending June 2018. It was 24 days in the previous year.

https://insights.nzherald.co.nz/article/fastest-selling-suburbs/

Now 22 days is a very short mount of time if it measures the time the property went on the market to the time a sales agreement was signed. Less time than your typical auction with three open home weekends and then an auction which is really about four weeks from start to finish. Remember too that a smaller fraction of houses sell at auction.

Do these figures imply that you are likely to sell far quicker by negotiation than auction? Bearing in mind that half of the houses on the market sell in less than 22 days in Greenlane. It almost seems to me that the auction marketing campaign time period should be excluded from these stats as properties generally don't sell before the auction date almost by design.

Also many negotiated sales agreements fall through. Are the statistics including conditional sales agreements?

It does appear that "Days on the Market" can be a rather dodgy statistic. it may include properties that have been withdrawn as well as properties that have been 'reset' by listing with another agency.

https://en.wikipedia.org/wiki/Days_on_market

by Houses Overpriced | 28th Jul 18, 10:48am 1532731725

There was an article some time ago about how agents list, delist and then relist that affects the number of days on the market, as the first listing period is ignored

by Houses Overpriced | 28th Jul 18, 10:53am 1532732000

"An interesting aspect of the market at the moment is that while the number of properties being offered at auction has declined over the winter months, the sales rate has remained remarkably stable."

Why do you stay remarkably stable? On the contrary, considering the volume being lower, a healthy market would see an increase, clearly its an anemic market where a lack of listings is not drawing any additional activity

by richard1965 | 28th Jul 18, 11:56am 1532735774

Stable Yes because the government is having cold feet and trying to delay and dilute the foreign ban bill.

Bring it on in right spirit as was intended and see the difference (Whether it is small or big only time will tell but YES their will be some difference and which is at high end on good properties).

Labour government though making right noise but intent is missing in their action as a result knowing that cannot avoid are trying to delay and dilute. Overseas investment amendment bill is one example.

by Houses Overpriced | 28th Jul 18, 12:01pm 1532736065

Do you know what stage in the process the bill is at ?

by custard | 28th Jul 18, 12:05pm 1532736302

I found this a couple of weeks ago and I don't think anything has changed in that time – it would seem it could be some months away before any legislation actually takes effect?

“The Finance and Expenditure Select Committee’s Report on the Amendment Bill, including all proposed amendments, was released on 18 June 2018. The Bill will now progress through its second and third readings with Parliament. The Report includes a statement that the New Zealand National Party and ACT New Zealand oppose the Bill, so it is likely that there will be some further debate as the Bill progresses through the final stages.

The current proposal is that the new provisions will come into force no later than 2 months after the Amendment Act receives royal assent (which is when the Governor General signs off on the Bill – usually within a week of the third and final reading in Parliament). The new rules will not apply to any contracts that are entered before the Amendment Act comes into force.”

by Houses Overpriced | 28th Jul 18, 12:11pm 1532736692

Yup I know, was just checking with richard, as he doesn't seem to have a clue about the process

by richard1965 | 28th Jul 18, 1:19pm 1532740773

Lol. I too know and also am aware how comittees can be used by politcal parties to delay and this is what is happening with overeseas amendement bill.

by Nzdan | 28th Jul 18, 3:22pm 1532748169

You’re absolutely clueless, thanks for clarifying that for everyone here.

by taimaiakka0 | 28th Jul 18, 4:59pm 1532753984

Richard you are correct but this happen not only in NZ but in many so called democracy of the world. Poltics.

by Jaf | 28th Jul 18, 12:57pm 1532739455

Agreed that "Days On The Market" or "Days Taken To Sell" can be dodgy.

Considering that properties that do not sell can be flipped through different agents or agents resetting a listing ( by delisting & listing again) ,it sure is a camouflage for Stale Listings

by mikekirk29 | 28th Jul 18, 6:35pm 1532759705

OTM is about 4 months in Auckland on average, looking at RE NZ. Also, 'lots" are on listings for up to 16 months. So, where they get DTS from is anyone's guess. I am always asking this! 9 weeks is safe bet from OTM to settlement date.

by Zachary Smith | 28th Jul 18, 6:51pm 1532760713

Yes it is very strange, possibly worthy of an Interest.co.nz investigation. It's just so obviously wrong it's a wonder no one else is calling them out on it.

by Nzdan | 28th Jul 18, 7:11pm 1532761915

The other day i performed a search on realestate.co.nz, sorted oldest to newest and noticed the same property show up 3 times on the first page with the sale real estate company. Relisting the property must "reset the clock" so to speak.

by Yankiwi | 28th Jul 18, 7:05pm 1532761547

An important data point would be a comparison to the same month from the prior year. How many auctions were there last year for the same month, and how many sales were done via auctions last year vs this year on the same month? This is far more relevant as a comparison than comparing to the prior months numbers due to seasonal factors.

My perception is that the sales #s have reduced as compared to the prior year. But, perceptions are not what opinions should be based on. Give me data instead of month to month comparisons!!!

by gingerninja | 28th Jul 18, 8:04pm 1532765078

Agreed Yankiwi.

by theglc | 30th Jul 18, 8:19am 1532895551

This totally dispels TTPs argument that clearance rates have been rising over the last month or so.

Welcome to reality TTP with actual evidence, something unfamiliar to you

by Retired-Poppy | 30th Jul 18, 9:26am 1532899588

theglc, commentators requesting TTP produce evidence are greeted with a scripted response "I'm not spoon feeding you, go find it yourself"

Online REA Chatbots have their limitations ;-)