Auction numbers are continuing to track down in Barfoot & Thompson's auction rooms, however the sales rate is up.
The real estate agency marketed 74 residential properties for sale by auction last week (17-23 June), down from 91 the previous week , 94 the week before that and 104 the week before that.
However the sales rate was stronger, with 35% of the properties changing hands last week, up from 33% the previous week and sales rates of 29% and 28% in the two weeks before that.
Only three of last week's auctions had 10 or more properties on offer, with 11 on offer at the Manukau auction (36% sold), 10 at the Shortland Street auction on June 19, where most of the properties offered were from central Auckland suburbs such as Epsom, Mt Eden and Remuera (40% sold), and 26 at the North Shore auction where the sales rate was 23% (see the chart below).
Two of the properties had their auctions postponed and one was withdrawn.
The details of the individual properties offered are available on our residential auction results pages.
| Barfoot & Thompson Auction Results 17-23 June 2019 | |||||||||
| Date | Venue | Sold | Sold Post | Sold Prior | Not Sold | Postponed | Withdrawn | Total | % Sold |
| 17-23 June | On-site | 5 | 4 | 9 | 56% | ||||
| 18 June | Manukau | 4 | 5 | 2 | 11 | 36% | |||
| 18 June | Shortland St | 1 | 3 | 4 | 25% | ||||
| 19 June | Shortland St | 4 | 6 | 10 | 40% | ||||
| 19 June | Pukekohe | 2 | 6 | 8 | 25% | ||||
| 20 June | North Shore | 2 | 1 | 3 | 20 | 26 | 23% | ||
| 20 June | Shortland St | 1 | 1 | 1 | 3 | 33% | |||
| 21 June | Shortland St | 2 | 1 | 3 | 67% | ||||
| Total | All Venues | 21 | 1 | 4 | 45 | 2 | 1 | 74 | 35% |
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30 Comments
The (success rate) percentage appears a little higher but the number sold isn't. In an effort to bolster the embarrassingly low percentage sold by this method, REA's still struggle to bring properties to auction that are more likely to sell. Turnover is low, buyers are retreating and vendors stubbornly unrealistic. As support in the upper quartile of the market continues to give way, vendor stubborness will only invite in further remorse.
House owners/investors aren't losing any sleep.....
Correct but any so called investor who has bought the house in last few years and deos not have holding capicity is not only loosing his sleep but also his life/future.
So people without a house are restless/anxious and everthing that you say but is not for not buying the house in last few years but for not buying the house much earlier (Who could have). Infact all those who missed and did not buy the house in last few years are not loosing sleep but must be pleased as was a blessing in dsiguise as now with their deposit have better options - more value for their deposit $$$$.
Very long term genuine investors and also people who were doing money laundering will be and should be fine (Major chunk is comes in second category) but yes all speculators and so called investors are.........
Wait and watch.
Given the somewhat static clearance rates and reduced volumes going to auction perhaps its time to pay less attention to these results. Overall sales volumes, particularly if they could be reported by price bracket and change yoy would tell a full picture of what's going on in Auckland.
If this is anything to go by, I started visiting open homes again after a long period of not standing a chance, competing with cashed up specuvestors. The end goal is to buy a home to live in.
It seems like the only people who still need to catch up in this race are the vendors.
Real Estate agents have seen the writing on the wall and unlike previous years where they would ignore me and my low deposit (house prices gew faster than i could save) they now keep on phoning me. Even had one practically begging me to increase an offer I put in for a house no one else wanted. Why would I outbid myself?
The final analysis is that vendors will soon find out that once one property sold at the market rate all buyers will expect to pay the same for surrounding property.
My only concern right now is that I am not sure where on the curve we are and I would really hate to lose too much capital. Anyone willing to hazard a guess?
As I'm in a similar stage to you I reckon we're moving through the "denial" stage of a bubble. We've just moved into a lovely rental that was all done up but failed to sell at auction for a year to wait things out. Keep an eye on Sydney as I think we're tracking about 12 months behind. Also mysteriously as they introduced a foreign buyers ban about 12 months before us. Personally, I reckon we'll go to about 5 times the average salary to average house so we still have 20-30% to go. But I'm waiting till I see a couple of solid months of an upturn and a bit of realism from the vendors.
Sensible decision - Make sense in this market.
Unfortunately many FHB who had missed the opportunity earlier are so petrified that are jumping to first house that fits in theire budget, which was not possible earlier before realizing that now they should have a choice to make the most of their deposit.
Having missed the last boom, FHB have nothing to lose by waiting as the house may or may not fall (Can argue but will and should fall) but one thing is certain that are not going up for some time/years to come so why the rush.
Wait and Watch.
JM, I am assuming you are in Auckland ?
Property cycles are long running beasts. To give you an idea London peaked in 2014 and is now about 20/25% below peak with prices still reducing as stock comes onto the market. Hong Kong initially slipped 35% after the Asian financial crisis in 1998 but didn't bottom out until 2003/4 when it was down 65%.
What you seeing in Auckland is the start of the slow down not the end. At the moment sellers are still not adjusting price expectations ~ this will only occur in time as more places sell at lower rates driven by falls in the top end.
I'd stick to your guns on any bids and let the market come to you.
Nobody can make a definitive statement on the curve, but given all the data points from the past 3 years, its on decline surely. My reading says the market is in a long and slow decline mode for few years to come, probably 5-6 years. Being in the same situation as you are, its heartening to find the REA calling us back and in fact noticing us. Couple of years ago we didn't even exist for them. I am on the hold mode for now and do not want to incur unnecessary huge debt on a declining asset, the only people I'll be benefiting is REA and Banks. Its better to put that deposit in some other better use. House-Price-to-Income ratio is crazy in Auckland and with the FBB the funny money is gone, the only logical outcome is some sanity returning to the house prices. Point to be noted here is the all the possible forces available are at work to pump up the Housing market at present, and in spite of that the prices and sales are declining. So I'll definitely pay heed to the advise from Retired-Poppy, Pragmatist, Chairman Moa, Mrs The Point, CJ099, theglc and few others.
Headline : Barfoot & Thompson's auction numbers down, sales rate up
Above headline though technically true but as wants to potray positive sentiment - is playing with the data.
As even though the auction sucess number are high, if you can say so -2% Lol - sold one or two house more is because vendors are ready to meet the market - selling on what best price is available now instead of waiting - just checked a house in Sunnyhill area (Very good school zone area) 1 Driscoll Place was sold for $1065000 and has a CV of $1450000. (Down appox 26.5%) and another property 14 Driscoll Place went for $1150000 which has a CV of $1325000 so does the above headline justfifies true condition of the market.
Now even Units (Cross leased property) that were earlier holdings are giving way as just saw listing in Buckland beach area where the asking/hoping is Mid 700s and have a CV of High 800s but most probably that unit should go near around 700 as is in market for quite sometime.
Vested interest - people who are doing the data and also people who are presenting it but if the market is down, however hard one may try, cannot stop the inevetiable fall though may try to slightly delay it (Also low interest rate, helps) - Downward movement is an ongoing process but yes good oportunity for FHB and long term investors but should wait and watch instead of rushing or getting carried away by media reports that the market is changing or going up or may go up in near future - For few years housing market fall is locked and sealed so buy when one gets a deal.
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