Less than a quarter sold under the hammer at Barfoot & Thompson's latest auctions

Cool

Treading water.... another 'te mana o te wai' for Labour to tax

Agencies pushing Auctions in this market are not looking after their client's best interests. See lie agents use #12 here, https://www.noagent.co.nz/lies-agents-use/

In Sydney they are still getting 60% clearance Auckland been 20s 30s for months 

Yes but the news from last weeks auctions is the prices. Watchitfall posted his/her summary of Auckland sales prices - for under 2.5 million dollar houses. 60% of those sales were below 2021 CV (8% below on average), and a good number sold 20% below the 2021 CV.

CVs rose 35% on average ( national average) between 2017 and 2021. So it only takes a 26% drop from 2021 CVs to get us back to the 2017 level. Looks like we are heading there fast.

The Spencer Terrace example was a big shock last week, selling below both the 2017 CV and the price paid for it in 2017.

https://homes.co.nz/address/auckland/hauraki/1-2-spencer-terrace/EKEAX/…

Manukau region has gone for a toss.

Still the prices though have fallen has not fallen as they should have by now, compare to the rise as still lot of money in the system and last of few FHB who are still having FOMO are helping by getting one sale at a decent price out of 10 sold, giving some number for real estate agent to hold.

Also effect of recent Rbnz announcement still to be played out.

https://www.stuff.co.nz/business/130556747/from-bankruptcy-in-the-gfc-t…;           she gets it, its all about the yield         

Buy now for 1m you won't regret it. Within 20 years will be worth 2m while others are still paying increasing rents.

My sons bought last year, they are happy as. One is getting married in December, his future is coming together nicely.

Auction sales drop 12.5% in a week while offerings were up 3.33%.

Soon we won't see the sun past the stockpile of houses for sale.

If it's not for capital gains and trying to get rich quickly, there is no real benefit of real estate investing as it doesn't add much value as an individual investment. 

We need to grow the country as a whole, need good brains to invent something new which will benefit all and add value. 

Just adding more and more low quality house build and selling it for Millon a piece is not good growth in any sense. 

Hence now we see such a situation is housing market in NZ. Please enhance my knowledge and tell me if it makes sense to buy a 4 Bed town house on 250qm section for 800k+ in a tier 2 city in NZ? 

As I have commented here before, I am all for home ownership. In particular owner occupier, as long as it a positive life changing experience. Outside of this, renters too can achieve financial and emotional security, happiness and freedom with a healthy and growing bank balance. Renters can save too - right? Right now, those who bought in the last 2-3 years will understandably be feeling anxious that there timing was wrong and all they did was line the pockets of the vested, which they certainly did. I suggest that FHB's watch this correction play out in its entirety. Lets see how much house that growing bank balance will buy and therefore save in interest (dead money). That's where the true satisfaction goes to the next level. I think this is a pretty safe bet because once house prices stabilize, the likely introduction of DTI will prevent this debt driven froth from happening again. People will think twice about speculating on houses. 

From experience, "debating" these points with any Spruiking "debt junky" is pointless. Some here view saving as the ultimate cardinal sin. 

Last year definitely was not the most sensible time for FHBers to buy. They and their parents obviously did not understand the RBNZ had us on emergency interest rates and that at some stage the RB had to put them up as housing inflation was out of control. Greed gets the better of us generally. Young people listen to their parents saying they cannot lose with property. Personally I would have acknowledged the fact that interest rates had to go back up as we cannot live with high inflation forever. I would have paid my kids rent if need be as it will be peanuts compared with the tens of thousands if not more equity that people are going to lose because they bought last year or early this year. If you had waited to buy next year or even 2024 you will probably have borrow at least a $100k less than you would have last year. In Wellington it could be $200k currently. Paying rent and waiting is paying peanuts compared with interest on $100k to$200k . And you have to pay back the principal. Why don’t people use their brains, be patient  and eventually borrow a lot less. If you think the housing market is tough now you have not seen anything yet. When interest rates are 7 to 8 per cent or more it will be very tough. And everything else including food is costing us more. Agents retailers and car dealers are telling me it is tough in terms of selling. The RB says it will put us into a recession if we don’t stop spending. That is a scary thought. High interest rates, more unemployment, businesses failing and more asserts such as houses on the market. If you can save some cash! If last year your child was looking at buying an $800k home and you told them there were risks in buying now as the market was bonkers and it was and if you waited for a year or so and you could buy that same hose for say $650k what would any sensible child do? Paying off $150k let alone paying interest on it over time takes some doing. 

I think some here who always push for BUY NOW may well be involved in the industry and are a bit short of income, if this plays out like most international crashes have from these types of unrealistic DTI, agents are going to survive on very thin pickings for 3-to-5 years.

Perhaps some here are a bit scared of this prospect.....   Adrian Orr is not your friend.

https://www.oneroof.co.nz/news/we-need-to-buy-first-home-buyers-rush-to…

Real estate lobbyist trying to stir FOMO

BofA Securities investment strategist Michael Hartnett released his top trade ideas for 2023, which includes shorting select banks like Canadian banks.

Hartnett placed as his tenth top idea shorting Canadian banks, as well as similar institutions in Australia, New Zealand, and Sweden.

It's going to be very hard for ANYONE to get credit in NZ if this trades starts to pay off big time.    

Zollner says it is clear the Reserve Bank is not trying to engineer a recession on the scale of that seen during the GFC or the early 1990s.

That doesn’t rule out the country getting one, she says.

The Reserve Bank forecasts house prices will fall another 10%, which would mean they would drop by 20% from their 2020 peak.

But Zollner describes the housing market as the country’s Achilles’ heel and says there is “absolutely a risk that in trying to singe the edges of the housing market the Reserve Bank could accidently set it on fire”.