Barfoot & Thompson sold a third of the residential properties it marketed for auction last week, although those figures exclude the results of the Shortland Street auction on October 23, which have not been released.
Excluding the October 23 auction, Barfoot marketed 120 residential properties for sale by auction last week and achieved sales on 39 of them, giving a sales clearance rate of 33%.
Of the major auctions where at least 10 properties were offered, the sales rates ranged from 12% at the Shortland St auction on October 26, where all of the properties offered were from west Auckland suburbs such as Titirangi, Glen Eden, Massey and Henderson, to 35% at the Shortland St auction on October 24 where the properties were from central and central-fringe suburbs such as Meadowbank, Glendowie, Sandringham, Epsom and Three Kings.
The Kerikeri auction was particularly successful last week with sales achieved on five of the six properties offered.
Just over a quarter of the properties at the big Manukau auction were sold, and just on a third at the North Shore auction.
Last week was a short week after the Labour Weekend break, so the number of properties Barfoot took to auction was half of what it was the previous week.
However the sales clearance rate was unchanged at a third, which suggests the overseas buyer restrictions on residential property that took effect on October 22 (Labour Day), probably aren't having much of an impact on the market at this stage.
Of the 28 sales where selling prices could be matched up with rating valuations, 15 sold for more than their rating valuation and 13 sold for less, suggesting prices are also reasonably steady.
Details of the individual properties and the prices achieved for most of those that were sold are available on our Residential Auction Results page.
| Date | Venue | Sold | Not Sold | Total | % Sold |
| 22-28 October | On site | 4 | 2 | 6 | 67% |
| 23 October | Manukau | 8 | 22 | 30 | 27% |
| 23 October | Shortland St | - Not Available - | |||
| 24 October | Shortland St | 7 | 13 | 20 | 35% |
| 24 October | Warkworth | 1 | 0 | 1 | 100% |
| 24 October | Pukekohe | 2 | 6 | 8 | 25% |
| 25 October | North Shore | 7 | 15 | 22 | 32% |
| 25 October | Kerikeri | 5 | 1 | 6 | 83% |
| 25 October | Shortland St | 3 | 7 | 10 | 30% |
| 26 October | Shortland St | 2 | 15 | 17 | 12% |
| Total | All Venues | 39 | 81 | 120 | 33% |
75 Comments
Well, today’s headline isn’t too surprising. The signs have been there for a while now.
The ban is far from comprehensive - and may, in fact, have the opposite effect from government’s intention.........
Buyers, no doubt, will now feel a bit more confident. Anyway, I suspect the Auckland housing market will be more buoyant this summer than last summer.
TTP
Posted by Agent TTP, 20 Sept, 2017 - "National will race down the home straight on Saturday night - and form a Government by Monday. Mark my words"
Uh-huh, so with your track record of "observing and monitoring", will house prices stage a broad based recovery from 2021 as well?
Hi Retired-Poppy,
I was wrong about the 2017 General Election result - so I take it on the chin.
My challenge to you is to do the same when you are wrong with your predictions........
For a start, what about the crash in house prices that you predicted would have occurred long ago? Are you prepared to be up-front about it?
TTP
Retired-Poppy | Tue, 07/11/2017 - 14:01 "The tide is going out NOW, grab whatever clothes you can before it's too late!!"
One year later and with property prices holding up you're still waiting for the tide to go out. All I had to do was click on a random property article from a year ago to find a a nonsense prediction/claim from you RP.
https://www.interest.co.nz/property/90739/more-auckland-homes-being-auc…
BLSH, the tide IS going out. Global interest rates are now exposing serious vulnerabilities, marginal buyers withdrawing locally, China capital controls and also much tighter lending standards locally. Is this all you can come up with - seriously?
You just need to look beyond your own nose to see the deteriorating credit situation in Australia. Agent TTP and BLSH, I challenge you to come up with some sound facts now that will mitigate the coming global debt crisis.
Posted by Agent TTP, 20 Oct 2017, "Expect property prices to go up, not down, with the over-spending / fiscal imprudence that the new government will soon be noted for"
Has there been a rush to property - NO
Has NZ sovereign credit rating deteriorated - NO
Now, you've pushed out your house price recovery to 2021! Zero credibility.
Nonsense. You’re just a broken record. If the tide was going out on property prices a year ago, property prices would have gone down. The reality is that property prices are flat in Auckland and on the rise nationally. Not much will change in another year’s time, but no doubt you’ll still be going on about the “tide going out NOW”
BLSH, look past your own letterbox dude. It's a big world out there and I suspect being leveraged has led you to become seriously misinformed. Again, would you like to be reminded of the areas where prices have already fallen here in Auckland?
The tide IS going out globally, a debt crisis is brewing and the smart ones are preparing financially now. Both yourself and Agent TTP are yet to put up credible facts in support of your Auckland house price recovery in 2021 and why there won't be a debt crisis.
Edit: You've edited your comment so many times that I can't keep up!
What is the point of cherry picking Auckland suburbs that have gone down? I could cherry pick plenty that have gone up in terms of median price (Auckland City, Franklin District, Manukau City, Papakura District, Rodney District).
The reality is that Auckland's median is flat overall and its house price index is up 0.4% year-on-year.
Hi Retired-Poppy,
The data is very clear. House prices have been remarkably stable in Auckland over the last year (or, in fact, the last two years). The median house price has remained pretty constant for some time now.
Sure, in some areas prices have fallen a bit - while in other areas they have risen a bit. But, overall, fluctuations have been within a relatively narrow band - and have cancelled out.
Your predictions have been wildly astray. They have not stood up to scrutiny. The crash in house prices that you repeatedly asserted would have occurred by now has simply not eventuated.
We are looking for you to be accountable about this. I hope that is clear - and that you will respond in a dignified manner.
TTP
Agent TTP, there you go again, trying to suck others in by passing this illusion off as a healthy market. It's appalling how you have misslead FHB's. Its gone on long enough and as you are an RE Agent, I believe it's time you are held accountable. Large parts in Auckland have fallen big time with further falls to come.
Clearly those houses that are selling in this buyers market are ones that appeal by way of X-Factor with less available buyers. This is skewing the $$ figures higher on lower turnover. These houses are ones that more than likely have had big bucks invested to improve; https://www.oneroof.co.nz/news/35568
"The market is very house specific at the moment and if you have a house with x-factor, there will be buyer interest"
Again, a debt crisis is coming and the tide is going out!
With so many cuts what are the lending volumes doing?
Article yesterday with the title : "Latest Reserve Bank monthly figures show declines in the rate of annual borrowing growth across the personal, housing, business and agricultural sectors"
Should be going gangbusters, since the price of debt is dropping.. but it seems to be slowing down. Banks finding it harder to find mugs to get donkey deep in debt to buy in NZ. Housing lending growth slowed from 6.6% growth a year ago (which was already low due to the election), to 6% this year.
Hmmmm. What will the October figures show? My guess is significant further slowing of growth in housing debt.
Here you go honey bun..https://www.oneroof.co.nz/news/35574/?ref=nzhhome
Auckland has been below 50 for a long time..... panic is on its way
this is NZ cant happen here, things are looking great for a spring rush,
According to OneRoof figures, a total of 65 properties from 226 scheduled auctions sold under the hammer in Auckland last week, with the clearance rate dropping from 34 percent the previous week to 30 percent
at least wont have that boring BBQ chat this summer with all the experts on investing in rental housing
The issue with Warkworth is it is a binary result - the options are 0 or 100% - it's also called low volume statistic's. Without sufficient data points the result is meaningless. Basic stats but most just don't or don't want to understand. I could argue you are trying to use Warkworth to fit your narrative..
Binary or not it's irrelevant. A 100% sales rate on 1 item doesn't suddenly skew the full average across 120 properties. If that sale in Warkworth was instead lumped into the "On Site" category i think you'll find the total average clearance rate will remain unchanged.
Here’s a couple that include KeriKeri.
https://www.interest.co.nz/property/94467/barfoot-thompsons-larger-auct…
https://www.interest.co.nz/property/87256/sales-rate-nudges-50-some-bar…
May be vendor's expectation are more realistic and also will be interesting to see what happens for properties auctioned in area where Foreign buyers were active like central Auckland, Pakuranga, Howick, Buckland beach, Botany and near by areas where Chinese were very active or are they still active.
Herd Mentality.
When many who have citizenship and residency are investing in NZ (now their home country) many of their freinds and cousins also do want to invest/speculate and make profit. Also money laundering should be controlled (Though will find a way to manipulate)n It is that percentage that will stop or reduced.
If your moniker was my mantra, I’d be sectioned by now by now after 8 years of disappointment. Saying it doesn’t make it so. My purpose in posting is data clarity. I’ll continue to post it whether positive or negative as I see that preferable to the DGM cherry picking attempting to do I’m not quite sure what. Personally i’d welcome a good drop if it unseated the COL.
Averageman.
"Block Mania" Will Literally Kill Innocent Australians = (probably Kiwis too but it's all part of the hype!)
https://www.youtube.com/watch?v=McMCkrbofYQ
Warnings on the social costs of economic fallout, increased suicides, divorces etc.
The foreign buyer ban ,if it has an effect, will resonate mainly in Auckland and Queenstown as that is where the research suggests foreign buyers have been most active. Including Kerikeri in the statistic for overall clearance rate can of course be justified. In the context however of the headline a more meaningful statistic would be gained by excluding Kerikeri and including the missing data.
Transparency of sales prices are now being withheld by Australian real estate agents. Similar happening here? Are the industry slowing down the release of data to hide the reality of the falls? Take a look at the link.
Nic Johnson - Thanks for the work you must put in to getting all these links you post, they are very informing. How does Agent TTP sleep at night with such glaring facts of an obvious property crash about to happen or happening ? The psychology behind his denial is intriguing. Maybe its just called " Skin in the Game". Anyway I had to laugh when I saw this youtube video, Check out the link in the description. LOL LOL LOL.
https://www.youtube.com/watch?v=UiHdMjUDmxo
Free Popcorn.
https://www.youtube.com/watch?v=w8fCmUbjDtg&t=5s - worth your time to watch and share with others.
My pleasure and thanks. I have an issue with the brainwashing that is leading a whole generation into a nightmare of a future. We've lost most of the Generation Xers to the debt trap already and we're in danger of losing the millenials too, for whom it will be even worse if they get in now. The boomers and the Xers now are the biggest ambassadors of the Ponzi debt finance, largely because they've taken on the debt they want everyone else to jump in with them. Here's another link on debt if you have a spare hour, it's pretty interesting to see why so many economies have flat-lined.
The system collapses very shortly because the required pace of increase in debt lending, can no longer be serviced by either incomes or rent. The banks are finding it more difficult to keep growing the debt each month and are reducing rates to try and keep this going, the minute household debt growth starts to flatten then there isn't enough cash being created to fund the inflated prices and the system falls over. The 2/3's that didn't sell this week don't understand this.. The press won't talk about it because 65% of the economy is geared around the housing market and its subsidiaries..
TTP
https://www.youtube.com/watch?v=w8fCmUbjDtg&t=5s
Information about private debt levels and the impact of what any deceleration in the pace of debt growth will have on any economy. It may help you when trying to reset the aspirations of all those houses that aren't selling. Stick with it, it's good stuff and will save you wasting time trying to sell houses where owners either can't (because they're too indebted) or won't, because they're too stupid.
Thanks RP.
Here's one for you have fun with.. Do a search on any area in the country, ideally a postcode where there are 200-300 houses for sale and use Trademe's 'Estimated market value tab' (where not available QV). You will be astonished at the amount of sellers on the market who made their purchases in 2015-2018.. Flipping or Flopping do you think?
Wasn't seeing it til I hit the 2nd page of trademe results.
6 Revel Road, Sold back in Jan for $183k under the 2017 RV (house is super dated, but is a 842m2 section, and zoned Mixed Housing Suburban), and is now back on the market.
2/1305 Dominion road extension, again, a January sale back on the market.
826 New north road.. House must be dizzy from all the flipping.
Thanks Pragmatist... I have only done this so far for Waiheke and Palmy North and posted the results a few weeks ago 11th October.. Here's Palmy at that point. Took me about 45 minutes to 5 bar gate with two screens open on an iphone on Trademe and a computer on QV.
'Market
I have just looked at the 175 Listings on Trademe for Palmerston North and uncovered the following:
45 Listings are New Builds or Plots, most that have been built will have been financed for top of market prices. (25.6% of the market)
3 Listings were bought in 2018 and are already back on the market (1.7%)
11 Listings were purchased in 2017 (6.2%)
25 Listings were purchased in 2016 (14.3%)
7 Listings were purchased in 2015 (4%)
8 Listings were purchased in 2014
7 Listings were purchased in 2013
7 Listings were purchased in 2012
8 Listings were purchased in 2010/11
22 Listings were purchased between 2000-2009
6 Listings were purchased between 1990 -1999
5 Listings were purchased pre 1990
There is no data on either Tradme or QV for 21 listings. (12%)
If anyone needs any help working out how exposed Palmerston North is following the speculation in the market then please call the helpline 0800 WHAT A BLOODY PICKLE.'
No wonder we have a housing issue for tenants, none of them know when the landlord is going to try and flip the house from under them...
B&T auction results from today....courtesy of my friendly B&T agent...
Highbrook 30 Oct - 37 lots (1 postponed), 11 sold, 30% sold
Shortland Street 31 Oct AM - 19 lots, 1 sold prior, 4 sold, 26% sold
Shortland Street 31 Oct PM - 13 lots, 1 sold prior, 2 sold, 23% sold
The volumes are dropping further. Who blinks first; vendors or purchasers?
'Custard' will be chuckling into his Halloween chocolates tonight if those 20% Auction rates continue. The funny thing is that you only go to auction if you think that you have a house that there will be high demand for....
The marginal buyer controls the price of all things and when he disappears well the market has to reset a new price for things.
Hey Nic,
Laying low these days and just watching things unfold – and still very much sticking to my “marginal buyer” premise.
Those outlier price setters have either gone or are now severely weakened – however to most market participants their removal is not obvious – and will not be telegraphed by those in the know.
Early days yes – but the market appears now a bit “stuck”.
I don’t think buyers are going to pony up in a hurry – it could be that sellers are the ones that may have to compromise.
Still some downward adjustment in pricing to come I think.
Thanks shaok... Good work, if just one young person (caveat being that they will need to have brain) reads your post, you may just have saved them from a couple of decades of misery.
Make sure you look at the page on reducing credit to all sectors as well.. (David Chaston's article) and share what you learn there too.
Love reading the comments here when it comes to housing. I just have to laugh, the market is still rolling along guys, those people earning enough by getting off their arse are still buying housing and just getting on with life. The market is flat and shows no sign of crashing and interest rates are still low. Sure it could all change tomorrow, but that risk has never changed. Fundamentally there is still a housing shortage and until this government puts the brakes on immigration, house prices are set to continue to increase in the long term.
Carlos67 - good luck. Im sticking with logic and the facts. Those earning enough as you say, will not be earning enough to keep the house they overpaid for with higher payments coming. And just getting on with life as you say, for many there will be no life. I will be watching your type very shortly with a huge bag of popcorn, (extra butter) .
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