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

The sales rate at the latest auctions was 38%, exactly the same as it was three months ago
This house on an 809sqm section at Linwood in Christchurch sold for $240,000.

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.

You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

18 Comments

Comment Filter

Highlight new comments in the last hr(s).

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

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

"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

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.

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

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.”

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

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.

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

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

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

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.

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.

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.

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!!!

Agreed Yankiwi.

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

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 ;-)