Overall sales rate passes 40% at Barfoot & Thompson's latest auctions

Property

Sales rates ranged from 25% to 71% at Barfoot & Thompson's latest auctions

31st Jul 18, 9:43am by Greg Ninness

The sales rate at Barfoot & Thompson's latest auctions topped 40% although the numbers of properties being auctioned remains at winter lows.

Barfoot marketed 83 residential properties for sale by auction last week and achieved sales on 34 of them, giving an overall sales clearance rate of 41%.

Only three auctions had 10 or more properties on offer - the Manukau auction which had a sales rate of exactly a third, the Shortland Street auction on 25 July where properties from a wide mix of locations were offered and sales were achieved on exactly half of them, and the North Shore auction where the sales rate was 39%.

It was a tie for the lowest sales rate between the Whangarei auction and the Shortland Street auction on 27 July, with both achieving sales on 25% of the properties scheduled for sale, while the Shortland Street auction on 24 July took line honours with a sales rate of 71% (see table below for the full results).

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

**Barfoot & Thompson Auction Results 23-29 July 2018**
Date	Venue	Sold	Not Sold	Total	% Sold
23-29 July	On site	3	4	7	43%
24 July	Manukau	6	12	18	33%
24 July	Shortland St, CBD.	5	2	7	71%
25 July	Whangarei	1	3	4	25%
25 July	Shortland St, CBD.	6	6	12	50%
25 July	Pukekohe	1	2	3	33%
26 July	Shortland St, CBD.	3	3	6	50%
26 July	North Shore	7	11	18	39%
27 July	Shortland St, CBD.	2	6	8	25%
Total	All venues	34	49	83	41%

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61 Comments

by Zachary Smith | 31st Jul 18, 10:10am 1532988631

These are excellent results. Spring is in the air.

by Grendel | 31st Jul 18, 10:14am 1532988848

No one believes you. Not sure why you keep trying.

by Zachary Smith | 31st Jul 18, 10:17am 1532989066

With my hand on my heart I can honestly say that I truly believe these are good auction results. There is simply no doubt about it. I like a stable market and these results reflect that and there is certainly an uptick of late.

by Grendel | 31st Jul 18, 10:25am 1532989542

"simply no doubt" ... sure

by BadRobot | 31st Jul 18, 10:28am 1532989716

You sound as if you are grasping at straws ...... again.

by Retired-Poppy | 31st Jul 18, 10:58am 1532991488

Hand on heart, Zachary's desperate to find a pulse in a weak market.

by Pragmatist | 31st Jul 18, 11:02am 1532991756

"Paddles"

"Charging - 80 Joules"

"Clear"

Bang..

"Charging- 150 Joules"

Bang!

"Charging - 200 Joules"

BANG!

"Time?"

by Bobster | 31st Jul 18, 12:02pm 1532995370

Auction clearance rates have “oscillated” between a 30-50% average for some time. I would say a clearance rate of 70% is healthy, in excess of 85% is strong. We used to be in the 90%s. I am struggling to see how a clearance rate around the 40%s could be viewed as good, except to the extent it could be said “it could be worse” or “it’s poor but at least it’s been at a consistent level of poor”. I think you are clutching at straws. You might validly say that it doesn’t matter as a low proportion of sales are concluded by auction, although it does indicate to me there is generally a serious mismatch in the market between vendor and purchaser price expectations. But I don’t think you do yourself many favours by describing the current auction results as “excellent” or even “good”. That’s a bit trolly.

by Pragmatist | 31st Jul 18, 10:33am 1532990009

1 out of 9 exceeding 50% is excellent results? And total average of 41%? I guess it is better than in teh 30s like it has been, but looking at healthier (but still declining markets) like Sydney where 60% is the cutoff between poor or good show just how poorly the Auckland market is fairing.

by Crazy Horse | 31st Jul 18, 11:09am 1532992186

"Warning, warning" Dr Smith is in the house ! ....he has just invented the 'new paradigm' for the true meaning of "excellent" !! ....I just wonder what he would of called the auction results in July 2015.......when they were 100% ???

by Chairman Moa | 31st Jul 18, 10:34am 1532990061

My trusty RE agent recently upgraded her Audi with a new set of sport tires, she ditched the Silun brand and bought Wanli. So things are definitely looking up in her real estate business.

by Eco Bird | 31st Jul 18, 10:47am 1532990828

lol, DGMs have talked themselves so much into the crash idea and now became very itchy and sensitive about any good / Normal news from the market...

Maybe they need to set up a Union and picket outside Auction sites to get their messages across and emotions felt by the capable Wise folks buying in this market.

July results are not very far away - Get ready for checking market bottoms. time runs so fast ...

by Pragmatist | 31st Jul 18, 10:56am 1532991383

Heh, the irony is strong in this one. Its was Zach that was jumping in to try to spin this as an excellent set of results.

by Zachary Smith | 31st Jul 18, 11:04am 1532991876

They do seem overly sensitive to a good result. They don't seem to understand that my excellent means excellent in the current market. Shortland St 24th July seven properties were auctioned and five sold.

A seller with a good property and realistic expectations can go to auction with a reasonable degree of confidence.

We saw a wild ride up in recent times but we are not seeing a wild ride down. Things seem quite stable.

by J.C. | 31st Jul 18, 11:14am 1532992480

A seller with a good property and realistic expectations can go to auction with a reasonable degree of confidence.

You mean "reasonable degree of confidence" as a figure of speech with no actual quantitative value.

by Zachary Smith | 31st Jul 18, 11:29am 1532993384

Obviously if your property is more desirable than most and your expectations follow the Zachary Smith rule of expected current value your chance of selling at auction approaches 100%.

by theglc | 31st Jul 18, 11:19am 1532992773

what a load of BS

There was an article just the other day that overall clearance rates have been 38% for the last 4 months.

41% is only 3% higher, within the margin of error IMO

These are still dismal results especially if you are one of the 60% that dont sell

by Eco Bird | 31st Jul 18, 10:47am 1532990829

lol, DGMs have talked themselves so much into the crash idea and now became very itchy and sensitive about any good / Normal news from the market...

Maybe they need to set up a Union and picket outside Auction sites to get their messages across and emotions felt by the capable Wise folks buying in this market.

July results are not very far away - Get ready for checking market bottoms. time runs so fast ...

by Retired-Poppy | 31st Jul 18, 11:18am 1532992700

Eco Bird, re - your mentor John Keys recent interview with Mike Hosking and his raising concerns of a downturn. Is he a DGM too? What about John Mauldin or Liam Dann, are they also DGM's? By loose labelling others as DGM's, I think you're casting a shadow over your own financial future.

Unless July Realestate.co.nz figures are a marked upward change on a per annum basis from Junes, Auckland house prices overall are still falling.

by Double-GZ | 31st Jul 18, 11:13am 1532992419

Eco Bird, can you please answer this question? I am looking forward to it lol ^^

by Eco Bird | 31st Jul 18, 11:30am 1532993433

lol, I am not surprised that you cannot tell the difference between Chalk and Cheese RP ....

lol, I thought you didn't believe what Sir JK said yesterday and joined the mob in mocking what he predicted ... hahaha

But get ready, TD rates are coming down .... While my loan interest rates have just gone down a notch i.e. I Will make more money by Paying less interest this year ( almost free insurance ) -

I am now tempted to look for another investment property .. this is the bottom of the Market and time to make a new investment while everyone else continues moaning ...

If Sir JK is correct, then property prices will sizzle again soon.. and Investment properties will be the best place to park money in.

by theglc | 31st Jul 18, 11:45am 1532994316

Knock yourself out! purchase as much as you can if you believe this is the bottom.

You have our blessing!!!!! :)

by BadRobot | 31st Jul 18, 12:15pm 1532996103

Yes the real question is will Eco Bird put his / her money where his / her mouth is or just continue to rant and rave. Skin in the game or just saying one thing but in reality believing something else. The fraud of the spurikers is not surprising.

by Double-GZ | 31st Jul 18, 12:12pm 1532995970

Thanks for your sizzling comments Eco Bird. It was a good read lol ^^

by BadRobot | 31st Jul 18, 12:20pm 1532996416

If you think that was a "sizzling" comment you really should get out more (read , talk to people etc). It reminds me of the detritus that passes for intelligent commentary on the interweb.

by RickStrauss | 31st Jul 18, 1:27pm 1533000472

I thought you didn't believe what Sir JK said yesterday and joined the mob in mocking what he predicted

Correction: The majority of comments yesterday were in agreement with Key and were pointing out that he fostered the problems he was describing.

by Crazy Horse | 31st Jul 18, 5:17pm 1533014252

Eco Bird .... in your vast sphere of economic knowledge, in regard to residential property, what do you think is a good rate of gross return on a rental property (say the the market stayed flat for 3 years, so no capital gains at all) ???

My quick formula is cost price, say $1,250,000 plus renovations to bring it up to a good rental standard $150,000 ...so capital invested $1,400,000 and let's say $950pw rental (6 weeks empty for renos and finding tenants) so gross income pa $43,700 = 3.12% gross return on $1,400,000 ....probably typical current Auckland figures.

Let's say you had a 50% deposit on the purchase price, so a deposit for $625,000 (but opportunity cost is a bank term deposit @ 4.2% pa with Rabodirect over 1 years pa = gross interest lost $26,250)

Mortgage of $775,000 @ 4.79pa interest cost = $37,122 interest costs)

Rates $2,950 pa Insurances $1,100 pa (manage the property yourself, so just your time)

Total cost per annum = Mortgage Interest $37,122 + Insurance $1.100 + Rates $2,950 = $41,172 costs plus opportunity cost of the term deposit $26,250 plus your own time for property management etc.

So if we compare the above costs with rental income $43,700 and no capital gains ? this shows me that I wouldn't dream of buying a rental property in Auckland , it's a NO brainer !!

Good luck mate ! ......you are TOTALLY relying on capital gains for any sort of profit ! .....and I didn't even mention the possibility of a capital loss !

So, Eco Bird you better hope those prices well and truly "sizzle" !

by Eco Bird | 31st Jul 18, 11:44am 1532994258

lol, you keep editing your comment RP haha, how am I to keep up haha?

so now you pick names to suit your narrative, Liam Dann's article in the Herald was supportive of JK's thoughts ... John Mauldin is certainly more inclined to doom and gloom and appeals to most chicken little DGM hallucinations here ...

Unlike yourself, I do not advise people what or not to do, I cast my view and sometimes what I intend to do ... which apparently annoys you very much ...lol

by Retired-Poppy | 31st Jul 18, 12:08pm 1532995684

Eco Bird, are you okay? I'm thinking you might need advice from Kirwin, rather than Key.

Check the timestamp again, its well before both your posts. Hallucinations perhaps?

by Houses Overpriced | 31st Jul 18, 11:41am 1532994083

41%... WOW.. despite the fact that people jumping in prior to the ban...

ZS, are you waiting for spring? You may want to go on a holiday for a couple of years, as you are going to be disappointed. .

by Nzdan | 31st Jul 18, 11:46am 1532994379

Disregard.

by THE MAN 2 | 31st Jul 18, 11:55am 1532994944

The people that have bought at auction may well have bought bargains.
The fact that there are many passed on doesn’t mean the market is not good. Just that people want more than what the buyers have got money to pay.
I love the auctions as that is where the good buys can be found.

by Retired-Poppy | 31st Jul 18, 12:05pm 1532995519

TM2, where the Auckland market is concerned, what is your interpretation of a bargain? Is it one where as a rental, yield is positive?

by THE MAN 2 | 31st Jul 18, 2:27pm 1533004032

RP, a bargain is when the no.s add up and you are buying at under true market value.
True market value is not just what a property sells for on the day at auction.
Personally have bought all our properties under their true value, but you need to be cashed up or access to funds and take up the opportunities that present.
Never been caught out yet, always a possibility, but then again I know what I am doing!

The Auckland market is different to mine because there clearly is a lot of property that people pay far too much
more.
I don’t know the Auckland property market at all, but I do know that I could make money on any market and any city.

by Retired-Poppy | 31st Jul 18, 1:57pm 1533002228

TM2, when you say you could make money in the Auckland market thats now falling, are you meaning by flipping and banking capital gains or by way of positive rental yield from day one?

by THE MAN 2 | 31st Jul 18, 2:31pm 1533004319

RP, by buying right, improving in many ways.
If you are buying at under true market value then you are making money, as you can leverage to buy more under true market value property.
Anyone can be a property investor. But not everyone is good at it!!

by Retired-Poppy | 31st Jul 18, 3:11pm 1533006694

TM2, are you Ron Fong? In case you hadn't noticed, this strategy has been abandoned by many since the market stopped rising. Although, Eco Bird is one Auckland based speculator who still believes nothing's changed.

If more believed the market held low risk value at current premiums, it would still be rising like 2015/16 and lenders wouldn't have tightened the taps.

by THE MAN 2 | 31st Jul 18, 3:41pm 1533008496

Na not Ron Hoy Fong, but he does have very similar philosophy but he probably doesn’t buy as well as I do!
There is money to be made on any market, if you have access to finance!

by Nic Johnson | 31st Jul 18, 4:16pm 1533010574

TM2

Another day and another doozy of a stupid comment. You are so far out of your depth here and it can't be doing your self esteem any good at all. Why don't you try moving down a couple of leagues from 'Interest.co.nz' to 'STUFF'

After a few days I'm sure you will feel much better about yourself and on Stuff the market is still going up so it'll make you happier as well. Who knows, it might even help you rediscover punctuation and grammar.

by taimaiakka0 | 31st Jul 18, 11:58am 1532995138

Many overseas buyers buying before the ban is in place.

Check with any real estate agent in private and will vouch for it specially in Auckland as that is the way the property is promoted in China market - using deadline and rightly so for all overseas who are plainning to buy property in NZ.

It all depends how much time the government wants to give to overseas buyer to speculate/buy.

Wait and watch.

by rastus1 | 31st Jul 18, 12:04pm 1532995460

..that makes no sense and is perrrfect real estate bulldust.

Why would you race in and buy a product if a big chunk of your customer base was about to be disqualified from buying???

by Solidname | 31st Jul 18, 12:33pm 1532997186

Because that's where the money is to buy over-priced crap boxes, particularly if those over-priced crap boxes will no longer be available to you - "CLOSING DOWN SALE, BUY NOW BEFORE IT"S TOO LATE, EVERYTHING MUST GO".

Little to no due diligence done, just a transfer of cash (and currently source of funding doesn't matter in real estate, unless the finance law that was covering them has passed).

by Nic Johnson | 31st Jul 18, 8:25pm 1533025543

Hi Rastus

It isn't locals rushing to buy... FHB lending died a death last month, they are smarter than we give them credit for, but if you just want out of a country for fear of your family being safe down the line then you just buy before you can't anymore... Are all the empty houses just bolt holds (insurance) for when /if the shit hits the fan.... And the sellers who are taking advantage of this window of opportunity will be 'smarter than the average bear' (pardon the double pun on bear)... but they will know that the game changes the minute the rules on foreign ownership change.... hence the stall at the beehive.. Those that know, are jumping out of the market and the delays have allowed this to happen. The mistake the government have made is that this should have gone through within weeks of the election and I don't mind saying that, that has highlighted a bit of inexperience.... You should never plan to do something and then give the markets leeway and too much notice. Gordon Brown announced that the UK was going to sell off its gold reserves years ago... What happened? the market for gold collapsed before he did it.. This is the opposite in that the fall comes when you remove demand. Politicians!

the market will evaporate but the desperate at the margin will keep playing it as long as they can.

NB.
(Thanks Custard, I enjoy using the phrase of the 'marginal buyer')

by Nzdan | 1st Aug 18, 9:03am 1533071038

Have a read through some of the submissions made to the Overseas Amendment Bill. You can click on each submission and open up the document (full evidence text). There's a few funny ones.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/docu…

Example:

Item of business :
Overseas Investment Amendment Bill
Submission name :
mr jiang zhu
my name is jiang zhu i object that. that will not good at the economic. thanks
https://www.parliament.nz/resource/en-NZ/52SCFE_EVI_75755_1009/586ffba2…

by nymad | 1st Aug 18, 9:16am 1533071761

There might be confirmation bias here...

However, looking at the distribution of the names against the submissions appears to display a very disproportionate response from a certain group of ethnic names. As in they appear to be very over represented..

by Averageman | 31st Jul 18, 12:13pm 1532996024

I'm still in the Bears camp as the math's does not stack without a massive wage and price spiral (perhaps one is starting). One notes that even the Bulls poster boy Mr Key is predicting difficult global economic times approaching citing issues in China (spluttering), US (massive deficit), and Europe (weaker than before). Could this be the "bull trap" that appears between the "Denial" and "Fear/Capitulation" on all the property bubble charts?

Additionally, can I ask if the usual Bulls on this blog are also buying up large...or not? Also if not...could they please comment why not?

by Tui12 | 31st Jul 18, 12:48pm 1532998091

"this is the bottom of the Market and time to make a new investment while everyone else continues moaning" - Eco Bird 31 July 2018

by Double-GZ | 31st Jul 18, 2:11pm 1533003093

Beautiful new Remuera Listing. CV is $5,500,000.
https://rwremuera.co.nz/auckland/remuera/7a-aldred-road-17587028/

by Chairman Moa | 31st Jul 18, 3:19pm 1533007163

buy it next year, it will be 500K less

by Nic Johnson | 31st Jul 18, 4:23pm 1533011017

And the rest Chairman, do you think the banks will be able to price the market without the foreign injection of cash setting the backstop? I don't think so, just watch how much tighter they get on their lending criteria and where 'they' feel comfortable lending against values. (30% less would be my guess). There's a big re-valuation project ahead for QV the minute the ban kicks in. Isn't it exciting!

by Chairman Moa | 31st Jul 18, 4:35pm 1533011731

Yes, if I was a rich mainlander and for that price bracket, I would seriously look at other cities like Melbourne, may be Sydney where they have better universities for my children, better business opportunities and better connections to the rest of the world. I hope Auckland hasn't price itself out of the market.

by Double-GZ | 31st Jul 18, 6:35pm 1533018926

No more Top 10 or Top 5 Sales in DGZ.

by Retired-Poppy | 31st Jul 18, 6:01pm 1533016907

DGZ, have you got the five top sales, each for Manukau, Pukekohe and Waitakere? I prefer to be spoon fed with a balanced diet.

by Double-GZ | 31st Jul 18, 6:22pm 1533018139

Sorry I don't have those stats.

by Nic Johnson | 31st Jul 18, 6:21pm 1533018073

enlighten us.

by Double-GZ | 31st Jul 18, 6:26pm 1533018383

My lips are sealed.

by Nic Johnson | 31st Jul 18, 6:30pm 1533018609

Why have you edited your above comment Double GZ? Previously you were suggesting that we would find the identity of the vendor at the top of your list to be worthy of note...

by Retired-Poppy | 31st Jul 18, 6:29pm 1533018581

Nic, it seems DGZ altered his comment for sensitivity reasons. I've seen this address together with a well known name pop up in another thread.

Timely save DGZ.

by Nic Johnson | 31st Jul 18, 6:38pm 1533019106

Oh do tell RP. Who is the lucky seller?

by Nic Johnson | 31st Jul 18, 6:44pm 1533019451

Before you edited your comments Double GZ , who was the vendor of 33 Arney Rd that sold for $9,600,000?

by Pragmatist | 31st Jul 18, 6:58pm 1533020283

Edit: my bad, should have checked more carefully