Barfoot & Thompson auction numbers remain at their winter lows but the real estate agency achieved sales on 43% of the properties at its latest auctions.
The high point of the week was the Shortland Street auction on August 21, where 10 properties were marketed, mostly from central Auckland suburbs such as Epsom, Mt Roskill, Blockhouse Bay and a couple from the western suburbs, with sales achieved on seven out of the 10.
Sales rates of 50% or more were also achieved at the Shortland Street auctions on August 22 and 23 and at the Pukekohe auction, and just under half were sold at the North Shore auction.
Sales were slower at the Whangarei auction where just one of the six properties was sold, while only three auctions were scheduled to be conducted on site last week, with one property having its auction date postponed and the other two being passed in for sale by negotiation (see table below).
There was a good spread of prices with a large chunk of the properties selling in the lower to mid-price range.
Individual results with details of all the properties offered are available on our Residential Auction Results page.
| Date | Venue | Sold | Not sold | Total | % Sold |
| 20-26 August | On site | 0 | 3 | 3 | 0 |
| 21 August | Manukau | 8 | 15 | 23 | 35% |
| 21 August | Shortland St, CBD. | 7 | 3 | 10 | 70% |
| 22 August | Whangarei | 1 | 5 | 6 | 17% |
| 22 August | Pukekohe | 4 | 3 | 7 | 57% |
| 22 August | Shortland St, CBD | 5 | 5 | 10 | 50% |
| 23 August | North Shore | 8 | 9 | 17 | 47% |
| 23 August | Shortland St, CBD. | 3 | 3 | 6 | 50% |
| 24 August | Shortland St, CBD. | 3 | 6 | 9 | 33% |
| Total | All venues | 39 | 52 | 91 | 43% |
53 Comments
Sellers are becoming more realistic and agree for lower deals. Nevertheless, overall rate of 43% is not impressive though slightly higher than last few months 35%
meeting the market
Hi puketepapa
You are most most probably correct. Past low success rates will be putting pressure on vendors to meet the market; if not, that is most certainly what the RE agents will be telling them. Also possible - as indicated by low numbers of properties and previous low sales rate - that only those vendors under considerable pressure are using auctions.
However this, along with the stats yesterday on investors returning (I am yet to check the actual RBNZ numbers rather than just a % of activity), are least worth noting. However they are not indicative of an imminent collapse in the market is underway.
But the same old story; one swallow doesn't make a summer, so just worth noting these and looking out for any other indicators as to what is happening.
That's total garbage.
It's abundantly clear that people resist selling in a soft market. That's why there are relatively few houses being listed - and auction clearance rates have crept up over the last 2-3 months.
Some people here predicted that the number of listings would soar and that there would be a dramatic fall in prices through 2018 - but that simply hasn't happened. They were completely wrong.
TTP
Sellers are becoming more realistic and agree for lower deals
Any evidence?
When do you ever provide evidence for your claims?
Whenever I'm asked.
Any evidence of the opposite?
Haven’t looked into it. But when I do go making claims about the housing market, it is based on evidence or indicators. Based on your response, I’m guessing this isn’t your approach.
Agreed. Still room to move (down) and with the Govts performance vs business (less than average) wouldn't be surprised to see a few businesses trimming lower performing staff as forecast look increasingly tight. Would want to be on a mega mortgage with no job. Combined with flat and best, declining at worst pricing, and tightening lending you would have to be a super motivated fhb/specuvestor to be jumping in.
Interestingly an economic bellwether just happened - Bugatti has released a new hyper car - the Divo. They have released similar cars at the tipping point of almost every significant recession in the last 100 years.
Ladies and gentlemen,
The time is now, let get back into the steaming hot market.
There's a noticeable absence of posts from Retired Poppy, Houses Overpriced, Property prices to fall and Nic Johnson. Have they joined a Government Working Group, the Circus or just got sick of flogging a dead horse? Enquiring minds want to know?
Leave the horses out of it !! ....I might be "crazy" but I'm still a kickin' !
Everyone, just blow caution to the wind !!.....get out there and buy, develop, sell - rinse and repeat !
Things are on the "up and up" !!
It's a "sure thing" ....capital gains and increasing rental returns forever !
C'mon what are you waiting for......... the only way is up !
I noticed that. They took away Retired-Poppy's internet privileges at the rest home. Houses Overpriced had his electricity turned off when he stopped paying. Nic Johnson is waiting out economic Armageddon in that "cottage" of his.
PropertyPrices2Fall has been chiming in with the occasional comment, but its always the same thing - "Property prices to continue falling". 8 years of being so terribly wrong has turned his mind to mush.
No, his mind was already mush 8 years ago.
Takes one to know one
I know you are but what am I?
Haha, Taxinda and the COL are taking the economy and industrial relations back to the ‘70s and you two are reminding of my playground conversations of the same era.
I'm not going to stoop to your level. You are who you are
To be honest, there's little point in me relentlessly asserting my opinions when as an asset class, houses will underperform for some time to come. The question is, what will the ride be like?
I'm already financially prepared. There's nothing more I need to do now but wait and watch. Surely by now, everyone here knows what I think of this debt ridden ponzi........
My advice is to treat debt reduction as a number one priority. Banks look after themselves.
Your aim should always be debt reduction from the minute you get a Mortgage. I was always going to smash mine in 15 years. Anyone who bought a house 4 years ago or longer has made money big time but its now hit the wall for some time to come.
Hi Retired-Poppy,
You write, "Banks look after themselves." That is correct.
Banks certainly don't look after their depositors.
TTP
There're two sides to this house price argument, I guess one side is more delusional than the other.
Did B&T write the headline on the landing page?
Wouldn't it be more reflective of market conditions to say: "Clearance rates stuck below 50%" or "Only two out of nine auctions reach 50%"?
70% was a good result for an auction with ten properties though.
Central Auckland area is still selling well with choice properties selling well above CV. Those that sell below CV tend to be do-ups. These two examples for instance:
https://www.barfoot.co.nz/760852
2289k RV 2100k last sold in 2015 for 1630k (prime property and a big gain in three years)
https://www.barfoot.co.nz/760994
1122k RV 1450k (extreme do-up)
5A Dunkerron Ave - No Blinds/Curtains? Not even fixings? Bet the place was left empty for 3 years.
Well - it looks like the Early Spring really has eventuated for the property market.
There were a few Doubting Thomas's around here - but they've been mistaken.
The much coveted inner-city suburbs in Auckland (and Wellington) are holding up particularly well. There's a real shortage of good houses available in these areas - as a quick look on TradeMe or realestate.co.nz soon reveals.
TTP
Government has given 2 months window to all foreign buyers /Speculators to rush and buy so not surprised.
Next two months the volume will and should be up - courtsey Labour government.
Or "Zero % success rate for auctions held on site"
At least they dont have to go far to cry into their pillows :)
It's the Briscoes Lady that has been doing this headline. Just the reverse of Briscoes "up to 70% off this weekend only, you'll have to hurry". Everyone knows that this means there is a 30% off sale and 2 items in the store are 70% off. Here "up to 70% sold means 43% sold. Meh, no biggie.
Prices are falling based on todays B&T auction results
Yes but you just don't care with the recent gains also if your selling and buying in the same market it makes no difference anyway. Its about getting on the property ladder, otherwise the later in life you leave it the harder it is.
By age 30 definitely but earlier is better, I totally agree Carlos
It is telling that the sale rate is still at a rather low number. The percentage of successful sales is an easy to understand number, just as the median sale price. Both have the potential for providing a misleading conclusion. At present, the sales percentage is improving slightly due to a lowered number of homes going to auction. Everyone that has been around RE for any length of time knows what it means when auctions become a less desirable method for selling a property.
The market is definitely slowing here in Tauranga, despite published rises in median house prices. Very few houses are selling at Auction, with the majority of them going to "price by neg" the day after the failed auction, and then a few weeks later they get an over-inflated price attached to the selling advertisement. Some estate agents are even trying the old "take it off and start again" approach, removing the advert for a few weeks, taking new photos and republishing the house as fresh on the market.
Some vendors appear to be staunchly defending their price expectation of their asset with some houses in certain areas on the market since November last year.
A chat with some people who own a removal company last month informed us that many people who moved back to Tauranga from Australia to raise a family are now packing up and going again. The reason in every single case is that on paper the wage drop is manageable because of the "lifestyle" Tauranga has to offer, but the reality is there are 1000 Tauranga's in Australia in terms of lifestyle, and they all pay much higher wages than here. Why would people intentionally put themselves under mortgage stress when they can life much more comfortably in Australia?
See ya!
Have lived in Oz and yes the weather is a lot warmer.
Do the Ozzie’s look after the Kiwis that need help? Nah
Are house prices cheaper in the major cities? Nah
are the people a lot nicer than the Kiwis here? Not normally no
If people think that Oz provides more opportunities then go for it!
If you have not been that successful in NZ I can tell you that you probably won’t be any better in Oz!
Aussies look after Aussies from what i have seen. Getting an Australian passport is simple for a Kiwi if you don't have a criminal record that includes gaol time. It isn't that hard.
Hi THE MAN 2
Don't forget the snakes and crocodiles........ and the on-going political instability.
TTP
I moved from Perth to NZ 3 years ago, and we have moved back. It was by far the BEST financial decision made. $103 billion dollars in mining development has been signed off. News report yesterday a new $9 billion a year project in oil and gas. I now get DOUBLE what I was making in NZ. I pay way LESS for food, gas and rent. (cauliflower when I left was $9 for one- I brought one for 60 cents here). We have seen a mortgager broker 3 days ago- we are looking to buy a BRAND NEW build (350 sm - 4 bedroom - 200 sm house...wait for it... $320K!!!!!!!! Im telling all of my friends family and their friends and family- get your arses over here. NZ is a TERRIBLE place to bring up a family, because no one can not get ahead. (My wages in NZ for a professional was the same as in the 90s- but a house then was $60k... that same house is now $600k- fu#k that...)
BTW They absolutely love kiwis over here. Since I have been back, I have been offered 5 jobs- and the job shortage is becoming very real.
Do the Ozzie’s look after the Kiwis that need help?
You lived in Aussie and wanted to go on the dole?
Are house prices cheaper in the major cities?
What misleading BS. Are you comparing a city of 5 million to Christchurch? Brisbane is quite a bit larger than Auckland, has a lot more jobs, and is MUCH CHEAPER.
are the people a lot nicer than the Kiwis here?
Australians are incredibly friendly. What are you talking about?
If you have not been that successful in NZ I can tell you that you probably won’t be any better in Oz!
You are so full of it. Australia is a success multiplier, particularly for labourers and tradesman. Much higher wages, lower cost of living - you are going to do better over there than here. There's a reason trans-tasman migration is all one way.
Dive dive dive! Fall fall fall! 跌跌跌！痛痛痛！
You are on the money
Hi Double-GZ,
What happened to those magic three letters: "D, G & Z" ??
T T P (another three magic letters) (-;
Next 2 Months sale volume will be up where foreign buyers were and are active.
Foreign buyer ban from 23 October so obviously will rush to buy before the ban is implimented. Foreign buyer will and should take advantage of the opportunity given by current Labour before closing the door.
The Chinese money tap was turned off a while ago, it's going to make sod all difference.
What will happen after 23 October?
You will get even grumpier
Somewhat interested to see what, if any, impact the generously titled “foreign buyer ban” has.
I’ve banged on enough on what I believe the “marginal buyer” impact will be.
The end result again, if any, will take months to filter through.
Little point endlessly commentating in the meantime.
Foreign buyer ban is one .
But,not to forget banks' mode of screening mortgage applications in a rather more stringent manner. Instead of LVR, its DTI using debt-serviceability ratio, NZ income ( excluding dubious offshore claims of income to pad mortgage aplications etc).
Many mortgage applications get rejected, or if approved, are for far lesser amounts.
Would this impact the market??? Don't listen to RE agents or screaming headlines from media who depend on real estate adverts for their gravy.They have no choice but to spin for the side on which their bread is buttered
I'm an FHB living in the hot hawkes bay market, and an RE agent sought me out asking if I want to buy - this never happened before. Wonder what that means?
You are a hot property, that's all.
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