Fewer properties on offer but sales rates were up at Barfoot & Thompson's latest Auckland auctions with prices starting at $480,000

There were fewer properties on offer at Barfoot & Thompson's latest auctions but sales were achieved on more than half of them.

The agency marketed 78 properties for sale by auction last week and sold 41 of them, giving an average sales rate of 53%.

The two biggest auctions of the week were the Manukau auction where the sales rate was 47%, and the North Shore auction where the sales rate was 45%.

At some of the auctions held at the agency's Shortland Street rooms, sales on up to two thirds of the properties were achieved and more than 80% of the on-site auctions resulted in sales, although just a handful of properties were offered at some of the auctions.

Prices ranged from $480,000 for a two bedroom home unit with a garden and double carport in Glen Eden, to $1.6 million for a renovated four bedroom/two bathroom house in Orakei.

Details of all 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 30 July - 5 August 2018
Date Venue Sold Not sold Total % Sold
30 july-5 August On site 5 1 6 83%
31 July Manukau 8 9 17 47%
31 July Shortland St, CBD. 5 4 9 56%
1 August Shortland St, CBD. 6 3 9 67%
1 August Pukekohe 1 3 4 25%
2 August Shortland St, CBD. 2 3 5 40%
2 August North Shore 10 12 22 45%
3 August Shortland St, CBD. 4 2 6 67%
Total All venues 41 37 78 53%

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83 Comments

Have we seen the correction/crash yet? Yes.
Has the foreign buyers ban been imposed yet? Yes.

err ban is still munching thru committee stage with Nats placing road blocks at every turn. More likely last parts of foreign cash jumping it prior.

Nats cant be good at staffing road blocks then, they were on part 3 by last thursday.
I thought discussions were confidential, do you have a source?

up
10

Be really interesting if there was any anecdotal evidence of any one connected to the Nats trying to offload inventory before the ban.

Double GZ, you suggested last week that there was a high end sale that may have had a vendor whose name might have interested everyone. You alluded to it in one of your top 5 price updates. But then you took down that particular post when I questioned you.

Would you be prepared to offer up the name of that Vendor this week?

I would have thought NZ Herald will be on to it straight away but there's no report on that!? The last time he sold they made a big fuss out of it. This time, nothing :-S

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

So that's the address you gave us last week. Pray tell Double-GZ. Anyone else have any idea on this one other than the secretive Double GZ because it sounds like it may be an interesting story.

That property at 33 Arney Rd, Remuera in Auckland that sold for $9.6mn ...

Here is the answer to your question

https://www.stuff.co.nz/life-style/homed/celebrity-homes/106260203/remue...

Well, I suppose Spring is getting closer.......

The market seems to have changed up a gear.

TTP

TTP

Tell that to the 1000 Barfoot agents who didn't sell a house last month. Maybe you should offer to buy them all some dinner and give them a break from beans on toast.

'off the point' .... I just love your optimism ,,,"changed up a gear" ???....the sky is the limit mate ....awklund real estate is a "sure fire" one way ticket to riches beyond your wildest dreams !! .......property is the only game on town.....tax breaks for the astute property investoor .....capital gains "locked in" .....and now "this is just a minor seasonal blip" .....I could go on and on with the metaphors.

I got out of the Awklund residential property investment market in March 2016 ...but have still watched it since then .......however I am never ceased to be amazed at your "positivity" in the face of so many headwinds which have been bought up on this site, so many times before, especially recently.

So my only conclusion is keep takin' those meds ! ...at least you will have a smile on your face when ya "funny munny" rolls out the door ....... happy daze !

i thought Nic J was annoying but your use of 'Awklund' takes the cake. It's neither witty or funny. And yes you probably could go on and on.

...spoken like a true real estate agent :)

Grey Lynn Gangster.
I'm guessing you're part of the 'beans on toast' brigade. For a bit of variety try adding a bit of Worcestershire sauce one evening... Little bit of chilli powder is good too. If you're feeling extravagant grate some cheese on top of the beans and melt under the grill. Bit of tinned tuna on the toast and then cover with beans is also good when you get the end of month cheque with the mark up on the advertising spend from unsold clients.

I always thought it was a bit of a con the agents getting the Vendor to pay for marketing up front, but 3% fees are also a sign of a highly inefficient market-place. I wonder what happens when the on-line models (Purplebricks) decide to try the NZ market as they are in Aussie now?

Not a great guess. Your suggestions of how to elevate a meal smacks of someone who has watched a little too much Coro omni bus. For the record Worcestershire is only good in a bloody mary.

Hi Crazy Horse,

I daresay you'll live to regret getting out of the Auckland market in 2016 - just as many others have regretted doing so before you.......

History shows that, once out of Auckland it's extremely hard to get back in.

Sorry - but that's the reality, as most Aucklanders (and ex-Aucklanders) know only too well.

TTP

TTP, here's a timely reminder from a fellow Aucklander, "Arrogance is an illusion of superiority one perpetrates upon their self. Some may ultimately find their way through the illusion, but only after many losses" Debra Crown

Hi R-P,

Clearly, Debra Crown is inebriated by the exuberance of her own verbosity.

TTP (-;

@ "off the mark" ....you don't even read my posts correctly ....I never said I was out of the Auckland property market ...I said I was out of the Auckland property market as an "INVESTOR" ....March 2016 ...which no doubt you will fondly look back on, as the "golden daze" of Auckland residential real estate and the "out of whack" prices.... go boldly like no man or woman has gone before and "mortgage yourself to the hilt" relying on those endless capital gains bought to you by all those overseas "money laundering" purchasers....best of luck to ya !

Hi Crazy Horse,

You write, "I said I was out of the Auckland property market as an "INVESTOR"

Sure sounds like a "Crazy" thing to do - if you'll excuse the pun.

Commiserations my friend,

TTP

TTP, vendors and buyers alike will give you a wide berth if you continue coming across as a nervous and desperate REA. In weak markets, skilled agents still earn commissions.

@ "to the abyss" .... according to your ilk, if I still have property in Auckland, which I do, I am not "out of the market" ...I am just not putting my money into a market where the prices are so far "out of whack" and relying on so many factors to even hold them up, let alone increase in value.

Have you ever done any math and worked out if you were to buy to invest at today's prices and with prices just even "flatlining" you will still be losing money.

Sorry, but no commission cheque from me this month.

Happy daze :)

With respect to Auckland house prices, here are three numbers.

a) 7.2 - the number of percentage points per annum that Auckland house prices have increased in the period 1991-2016 (may be more commonly referred to as "double every ten years"). Refer https://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletin... Note 1991 is when the RBNZ started inflation targeting.

b) 9.0 - the current median house price to household income ratio in Auckland

c) 3.3 - the current median gross rental yield percentage on Auckland house prices

Depending on which number you choose to focus on and the context in which you look at that number helps to develop your expectation of future house prices in Auckland. Different people focus on different numbers and arrive at different expectations about future house prices in Auckland.

brilliant but lost on the masses!

Hi Crazy Horse,

So you're not "in the market" and you're not "out of the market".

You're just "Crazy" and "Horsing around".

Love it! Good on ya mate!

TTP

LMFAO, he is a really positive guy, isn't he, it's so soo sooo true - your post made me laugh so hard Crazy Horse. What I think I like most about ToThePoint is his bountiful creativity ;) and how he always faithfully mounts a defense on behalf of the bulls.

I really do get a kick out of him sometimes, even with my contrarian nature.

Howdee Zack B ....great to make someone laugh amidst the TTP et al "always on the up" etc etc statements, observations and "cherry picked" figures.

What really gets me a kicking around the corral here, are all the ASSUMPTIONS these property bulls make ....they all gloat and show off on how well they have done, or will do in the "future" ? and talk amongst thrmselves on here, as if ALL others want to put ALL their investment money into the Auckland property market...and there is something dramatically wrong if you don't won't to go down their path.

Have they EVER thought there are OTHER property markets outside Auckland and around the world ....also OTHER investments outside real estate ?

Don't get me wrong, I love property as a long term investment, and since late 2011 I have invested my resources into an OVERSEAS property market and when I compare the current returns from overseas vs. Auckland ...well, you know which one wins - hands down !

So when I hear all this TTP et al "rhetoric" to the Crazed Horse .....it comes across a just that ....CRAZY !!!

Foreign / Non resident buyers are rushing to buy property so not surprised.

More the delay by government more the opportunity for foreigners (May be this is what govt wants now that they are in power).

Wait and Watch

Patience dear readers,
The government works hard to satisfy your demands.
The bill is in committee again today.

yeah the bill is in comittee again today and will know the governments intent soon as from this stage also, if they want can delay it (As many are feeling that it will happen).

Will know soon.

Have noticed that many of the recent sales are close to 2015 - 2016 prices

You are correct. All those who bought in 2016 onwards or may 2015 onwards with the intention of fast money are finding it hard to sell without taking a hit.

This is priceless. You made the decision to create your username "PropertyPrices2Fall' 7 years 12 months ago. It was about this time that prices started to rise, and have been doing so at a cracker pace up to 2016/2017. Seriously, how does it feel to be so wrong?

As I said earlier today, "Houses Overpriced" is one of Boatman's children. I think "PropertyPrices2Fall" is the 2nd of Boatman's children.

Perhaps Retired-Poppy is granddad?

I bought in 2013, sold the following year as I went on my OE. Back in the country now. Noticed prices have gone back about 3 years, so if I bought today, I would be worse of by two years CG, but can only hope it goes down further

Until 2021/22 prices are going to be flat and you'll have more leverage to negotiate, so you should get in there while you can. After that its a buyers market again and you'll be waiting another 7 years 12 months at least.

Auckland values haven't dropped much, if at all, since the peak in 2016/2017. March 2017 median was 900K and June 2018 was 850K. More apartments and terraced units coming online could account for most of this.

You may want to re-read that BLSH.. You've gone and got yourself all confused again sunshine. Is 7 years 12 months not 8 years? And is that how long the buyers market will last?

'Until 2021/22 prices are going to be flat and you'll have more leverage to negotiate, so you should get in there while you can. After that its a buyers market again and you'll be waiting another 7 years 12 months at least.

Values haven't dropped much, if at all, since the peak in 2016/2017.'

Sunshine is what I call you, don't get it twisted, poppet.

No, the buyer's market is unlikely to last 7 years 12 months. However, if he doesn't buy in the next few years when he is in a stronger position to negotiate, I think he's unlikely to do so when prices are even higher in the future.

His profile says 7 years 12 months. Thanks for pointing out that this is in fact 8 years. You're very bright.

You're not.

Yet you hang on every word of my comments, reading every single one in detail, diligently posting replies to so many of them. I don’t read yours.

Don’t worry, I do read your replies though. As I’ve said previously, I do enjoy those, in the same way I’d enjoy watching a monkey pretending to know how to use a calculator.

Dunno about that, I checked about a dozen of the auction results, all except 2 were above 2017 RV, and the two that were below one was definately a x-lease, the other I didn't check.

Zachary, can you do your usual report for us please? I'll be very interested to know.

And in similar news!

In an effort to deflect the blame for falling UK house prices the Governor of the Bank of England suggests that a 'No deal' Brexit could result in a 30% fall in UK housing values.. Obviously 10 years of printing money and now having to raise interest rates on all the debt has absolutely nothing to do with the softness in the market.

For info 44% of the houses listed for sale in UK in 2017 failed to sell.. Sound familiar?

http://www.propertyindustryeye.com/house-prices-could-fall-by-a-third-if...

And that's in a market where the average price is £227,000 (NZ$436,000), where interest rates on mortgages have been less than 2% for 10 years and where you can only borrow 4.5 times household income at best.

Does make 4.5-5% mortgage rates and 7 times household income, plus higher costs of living look somewhat 'Northern Rockesque' . I'm sure Adrian will be busy looking into it though.

The champagne will be flowing at B & T headquarters, and fair enough too, as it's been a long time since they have seen 50% and it may be an even longer time before they see it again....

Hi thegic,

I wouldn't feel too sorry for real estate agents if I was you.

Plenty did so well through 2014-16 that they'll be drinking Champagne for the rest of their lives.......

Down to the local bottle store every Friday night, loading up the back of the Audi Avant.

TTP

TTP

I remember it well in Europe before the GFC.. Agents were doing marvellously, flash cars, big houses all the signs of their remarkable success and ability (it was nothing to do with loose bank lending) so as to attract the next Vendor to sell with them. Then the tap turned off, transactions halved overnight and they were the first back on the market trying to get out, but still talking it up to all and sundry. A good few of them lost their shirts in the process. The trouble was that they geared themselves up as much as everyone else..... Always go up!

Hi Nic Johnson,

I've no quarrel with your observations.

But I don't have too much sympathy for occupations where the market dictates activity levels and incomes.......

"Put a penny away for a rainy day" isn't rocket science: it's common-sense.

TTP

Agreed. But rare in general human behaviour..

41 properties sold.

Anyone know how that compares to other years?

Good question.

Just out of curiosity, I looked at the auction results page here on interest.co.nz, and tallied up all of the "SOLD" homes of the last 8 weeks for B&T in the Auckland region. This weeks sold results on the webpage was 35 homes sold. The average for the past 8 weeks was 34.6 homes per week. The highest sale week of this period was the week ending 16th June, which achieved 42 sales. The number of total sales do not appear to be increasing much in the short term.

I did go back to pages 79 and 80 of the auction sales for "B&T Auckland SOLD", which covers the week ending 5/8/2017, of which there were 34 sales. This is kinda similar to to the numbers for the same week this year. To me, it looks like the results are rather unchanged from last year in terms of auction sales rates.

Why the article shows 41 and the auction page shows 35 for the most recent week, I dunno. I'm assuming that whatever delta is there is consistent with time. Either that, or the auction results page has issues...

Thanks Yankiwi, we are investigating.

Hi Yankiwi, the difference in the numbers between the overall report on Barfoot's auction sales (with the table) and the number of entries on our results page is that there are usually a small number of sales where the details are kept confidential. That means they appear in the overall results as a sale, but not in the individual results because we don't have their details. Regards, Greg.

 

I looked at the RBNZ stats on debt and house prices since 2000. The 2001-2007 have seen the highest increases in house prices (77%) and the sharpest increase in mortgage lending (average of about 14% annual increase in the period!) and that is with interest rates 8-9%!.Yet after GFC and a huge cooling down of the market, the house prices only dropped by a third of their peak values. I have read multiple times that this has been due to QE. But if so, how the mortgage lending growth is almost half of what it was back then? surely the growth in lending needed to maintain the already hugely inflated 2007 prices and then increasing them further must have been steeper than that period, not actually half of that and when interest rates are almost half of what they used to be? I know that household were already maxed out in 2000s on debt so increasing debt from a already super-high position will be very difficult, which explains slower pace of debt growth, but doesn't that mean the QE effect on housing prices is not as strong as some argue (given that it is a less potent tool as debt is already saturated)? and such QE should have surely resulted in crazy inflation.
I have no issue accepting that the price increase in 20014-2016 in Auckland and 2015/2016 to 2016/17 elsewhere were crazy and unsustainable and a real possibility of prices reducing in future. But the question is by how much and if such reductions are not all recovered within 3-5 years. I also note that 72% of all purchases over the recent crazy period have been by owner-occupiers, with almost half of them being people who upgrade/change their house.

Back by popular demand the ZS auction "analysis". I went through all the Auckland houses and units that sold since last Monday.
38 properties with a CV of 34.700M sold for 35.988M which is an average of 3.7% over 2017 CV.

Remarkably similar results to all the others ones I have done over the last twelve months. 18 properties sold for over CV and 20 under. Quite a few low end properties sold for well under.

This one for example with a CV of 610k sold for 502k:

https://www.barfoot.co.nz/759385

It is, however, a HNZ rental with some time to expire and this always massively reduces the sale price. I would caution against renting to HNZ. The owner appears to have bought the property for 325k ten years ago so still made some money but it didn't double in value like you would expect it to. I'm pretty sure it would have fetched more if it was staged and sold vacant (possibly the extra hassle and expense wasn't worth it). Probably an investor deciding to take the profit now rather than take any chances.

Another notable sale was 91 Florence Ave in Orewa selling for 1045k with a CV of 690k. Zooming in from space you can see that this was an ideal subdivision prospect.

All in all I'd say the sales hints that the market is pretty much unchanged although perhaps a few more are selling under CV especially lower priced properties and average ones.

Thanks ZS. I love data that is analysed in a clear fashion. No drama or confirmation bias.

Hi Zachary,

On behalf of all contributors here, thanks for that skilful analysis and reporting.

Always appreciated,

TTP

Thank you Zachary. from early 2017, warnings to FHB's to steer clear of Auckland have grown stronger. As predicted, big reductions are starting as skittery speculandlords are fleeing the scene. It's still early days for not only the lower end, but the upper. REINZ have reported sales weakness in $million plus properties, this covers a large part of Auckland!; https://www.interest.co.nz/property/95114/reinz-report-says-sales-millio...

Auckland is now a buyers market. Weak sales = weak prices.

Thanks for the kind words Ex Expat and tothepoint. I normally get a lot of flak for these reports.

I haven't seen much discussion about the new rates bills people should be seeing now. I was really surprised to see that two of my properties actually went down. One with a CV that went from 650k to 840k actually had its yearly rates bill go down $160. The other one went down $10. My own home went up by $440 though.

Fair play Zach, you've put the hard yards in there. Good report. So it does look like the investors are bailing at the lower end of the market while the top end is still being propped up with foreign cash.

Nic, with ring fencing, it's such early days. As speculandlords watch their peers flee , the snowball will only grow larger as it rolls. FONGO!

Fleeing pears? Thats a new one. Is it contagious, will I be dodging out of control apples on the motorway tomorrow too?

Ha-ha-ha - thanks for spotting the typo :)

typo? Maybe a brain-o. Try peers.

Nah, just a brain fart. Yup all good now!

My rates bill went up $10 for this year coming here in the Wairarapa. Would’ve cost more to mail the notice out to me.

Hi Zachary,

Sadly, one must often pay for the privilege of a higher cv.......

Auckland Council bureaucrats do expect their annual salary increase & perks.

TTP )-;

My rates have gone up 5.6% and am now paying just over $5,500 for a CV of $2,500,000. I tried to retrieve my purchase settlement statement from 2009 to work out how much it had gone up but couldn’t find it. I think it was about $3,000 per annum back then, but there may have been a regional fee separate to that back then. Whatever the case at this rate the Rates will cost as much as my future Super payments.

Nice one Kate! :)

XX, if the first criteria doesn't work out maybe incorporate your house as a retirement village?

Surprisingly my rates bill went down by $11 this time. All properties with CVs of around $2.5M are over-inflated by money laundering, including my own. The real values should be around $750k each. So if you paid more than that you're doomed in the next 10-20 years. Don't be fooled by the fools.

Double GZ -you've still not replied to my question about your mystery vendor?? I love how you've turned from Bull to Bear in the last 2 weeks as well, are you an employee of the PRC?

Is it Max Key?

That would be an interesting story, bailing out of the market just as his Dad starts talking down the economy...

He's changed age again too, back from late 30s to early-mid 40s.

Not enough Oil of Olay, maybe.

Haven't heard from Gingerninja for a while.....

Heard a rumour she was out house-hunting in earnest for a Wellington abode.........

Can anyone confirm that?

TTP

No idea TTP. But I do miss ginganinja. She's smart! so I doubt if she'll be buying just yet...

TTP and Nic, hey guys!

Have you forgotten I am suffering from HPDFS (House Price Discussion Fatigue Syndrome)? The struggle is real.

I'm not house hunting. With house prices massively flattened, i'm in no rush. We just moved into a new rental because our landlord who previously said he would never ever sell, has run in to some financial difficulty and decided to sell in a big hurry. So with moving and the kids having been on hols for 3 weeks of July, i'm really behind with work and precious little time for the joys of interest.co.nz comments :-(

Hi Gingerninja

What a pain to have had to move just because a landlord has got themselves into financial strife.. They never seem to get that if the margins are tight to pay the mortgage then the capital gain has already been priced in.

Hope you settle into the new place and I wish you a speedy recovery from HPDFS, because I think that it could be fun here on interest over the next few months. Reckon your previous landlord is unlikely to be alone in his 'strife'.

It was fine, the house we moved to is better and $200 per week cheaper. So we're saving even more towards the house purchase.

$2.5m to live in wait for it...Orakei. Full of 90s leaky houses, mangroves, state houses and narrow streets wall to wall with parked cars. Unbelievable. I'll take our Paddo Terrace any day and its a million bucks cheaper in one of the best cities in the world. This is a great example of how AKL is massively mispriced and will have the mother of all corrections.

You missed out a couple of positives I.e. local tinny houses and close to the leftie shrine for Massey.