Auction sales eased back last week suggesting the peak summer season is drawing to a close

So March sales were strong.

No surprises here The great example would be (even though it is not an auction) 2/47 Tamaki Drive, Mission Bay . It is currently on sale for $1425000 . It was bought on 6 June 2018 for 1150000 . And after prices have fallen in this area by about 4% this 'investor' wants to make a gain of $275000 just in 9 months of falling market. Just get real , and your sales rate will go up again

Miserable. And not steady.

Starting to wind down? They never wound up.

Auction clearance rates in Australia are considered disastrous at below 50%. We're below half that. The taps have turned off, here comes the crash.

For those that would like a bit of data on the top end of the market. I had a specific look at the Remuera's 'for sale' and 'for rent' market just over a week ago. For such a lovely place, I was a bit surprised that so many sellers didn't want to live there longer.

Why are RE's still asking vendors to go to auction, clearly the process is not working. The excuse is price discovery. When it fails to sell at auction which is very often, then the property is put on price by negotiation, minus a price guide of where it sits. I find it strange this has gone on for so long, only thing consumers are expected to buy without a price or price guide. Seems like a waste of time really. If someone really wants to sell, put a price on it and let the buyer decide if they want to pay that much. Blind leading blind here and the RE gets paid $20,000 + for doing bugger all.

Whats the bigger issue - that a drop from 29% to 23% marks the end of peak season, or that a high 20s/low 30s clearance rate is the height of peak season?

Good old struggling Sydney, going through the biggest drop of property prices on record achieved 60% over the weekend. Bless those poor souls!

Wow. Can’t even say “holding steady” at a third. That’s really low for busiest month.
Here’s were the eternal property bulls start saying, prices will only go down 5-10% and then bounce. She’ll be right.

23% Auction clearance rates in March! Terrible results! It's going to be a cold Winter!

So I guess we can expect clearance rates of mid teens through the winter months. Don't worry, not long until spring and things pick up.

Market ticking over - with usual fluctuations.

TTP

Guys, it's just a seasonal fluctuation.. it will bounce back.

"giving an overall clearance rate of 23%. That compares with a sales rate of 29%"

No, it does not, it is 20% drop.

Huge drop in listings on RE.co.nz. Auckland listings down 300 in a day and a half.
It is because of a huge surge in sold properties.. or people giving up on the idea of selling?

So many properties in Pakuranga, Howick and Buckland Beach area which have failed Auction and the asking or expectation is near CV wheras thouse houses which are selling to meet the market that is below 15% to 25% below Cv are getting sold out.

This Sellers / Agents will be lucky to get even 20% below CV if they hold on for Long.

Just saw one property in Pakuranga where the auction failed and now the asking is 929000 (CV of 970) but similar hproperties in same street have been going for early to mid 800s.

Few real estate agents have too many properties listed with them and many are for more than few months old - I guess they approach vendor with unrealistic appraisal in current market so are unable to sell (Earlier was fine, even if you give high appraisal, houses will sell). CHECK ANY RE AGENT WHO HAS 4 OR MORE HOUSES LISTED AND CONFIRM WHAT AM SAYING AS I DO NOT WANT TO NAME WHAT I HAVE OBSERVED.

I see vendors spending up large on renovations before putting on the market so they get their anticipated price that the RE probably told them they could sell it for if they did a bit of work on it. Keep a lookout for those orange FlexiBins for the small reno, and the full on skips for the big jobs, its a dead giveaway when you see the toilet sticking out and the old kitchen sink.Expect to see more people also doing makeovers rather than selling in this market.

Hi Carlos67,

Agree - the vast majority of NZ house-owners (including investors) are only interested in selling for a profit.

A well-considered renovation/refurbishment in a quiet market can make a sizeable difference to selling price a bit later. Plus, you benefit from the improvements for as long as you live there. Thus, improvements can be money well spent - and fun in the process - if you can find a good builder!

If you have scope to get a car off the street, that can make a huge difference to selling price - especially if the property is near the CBD, where carparks are like gold........ I know a person who shifted their house further back on the section to make space for drive-on for two small cars - and then she refurbished the house. Fantastic outcome - more than doubled the value of the property. Whatever you decide to do, make sure you get a Building Consent and the Code Compliance Certificate.

In any case, term deposits are a waste of space at current interest rates. Why let someone else make money from your savings?

TTP
P.S. A caution about lifting the lids of those orange Flexi-Bins: you might find a doomsayer living inside and they're entitle to privacy. ;-)

Everyone has forgotten about the looming capital gains tax.
A large number of private buyers are wanting an apartment or extra home for personal use and a very large number own businesses or farms.
The fear is that this odious tax idea, which failed to achieve anything elsewhere in the world, will cripple business and investment.
The fellow who headed the TWG ( let’s not use his name) is laughing all the way to the bank at $1000 a day.
And he calls others Rich Pricks.