Residential auction activity remains surprisingly consistent as autumn weather starts to take hold.
In the week leading up to the Easter break (9-14 April), interest.co.nz monitored 331 residential property auctions around the country.
That was down slightly from 356 the previous week but much of that would have been due to the fact that it was a short week with no auctions taking place on Good Friday.
Of the 331 properties auctioned last week, sales were achieved on 105, giving an overall sales rate of 32%.
That was almost unchanged from 31% the previous week.
Auction activity has now been largely flat for the last several weeks, with the number of properties being offered at the auctions monitored by interest.co.nz settling in the mid-300s, with about a third selling under the hammer.
The sales trend has been particularly consistent in the Auckland and Canterbury markets which dominate auction activity, with just over a quarter of properties selling under the hammer in Auckland and around 60% in Canterbury.
Sales rates in the next biggest markets of Waikato and Bay of Plenty have trended down sharply over the last few weeks, suggesting much of the summer heat has now also come out of those markets.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz and the results achieved, are available on our Residential Auction Results page.
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29 Comments
Last one out put the cat out and lock the auction room doors, empty auctions are a bad look for the sellers.
It seems that vendors believe that their houses are worth more, at least the majority of them. And why not, improvements made, building inspection done and others. And everyone knows that houses appreciate over time.
Be quick!
Auction clearance rates are holding up pretty well - given we’re 6-7 months into the market downturn.
There remain plenty of people wanting a house.
TTP
Holding up coming off the busiest month of the year - bottoming out is a more honest assessment.
How are the Palmerston North apartment auctions looking, though?
Not in the auction rooms. Watching the B&T Auctions this morning..."Passed In" seems the order of the day.
Out of 24 auctions so far, only 4 sold under the hammer. Rest passed in...
TTP so we are six or seven months into downturn rates are still at emergency levels this downturn could be very long and prices are reducing every month not looking good
Here is a preview of what's coming soon...
Wanting a house, who does not but can one afford a house, even today though prices may have fallen.
Earlier some who could afford to repay / budget of $720 per week could have borrowed $800000 to $850000 So with 20% deposit could afford a house of million to 1.1 million and now with same budget ( though with inflationary cost in other household expenses would have gone up thereby reducing the budget) but assume, it is same today for same $720 to pay per week will be able to borrow $500000 to $550000, unless one increases their repayment from $720 to $1100+
Above by itself is self explanatory and not hard to see the future of housing market.
The winter air is starting to blow over the housing market.. this time there is no protection from the blast..
27% in Auckland hard to make that sound good
Yeah and didn’t someone mention that large number can’t get a registered bidder so don’t get to auction.... 27% or 9% of people who wanted to sell via auction...?
When I first saw the photo at the top I thought it was an article on the major planning changes in Auckland, which are allowing something like that but at at least three levels across most of the urban area.
HM - you're not impressed with the proposed plans, are you?! Do make sure you submit a response to the consultation.
Mixed feelings. I like density, but apart from the proposals for high density near train stations and centres, this is indiscriminate density. There’s likely to be ad hoc development occurring in all sorts of far flung locations, in areas that may be poorly serviced. And that will come back to bite ratepayers.
But there’s little point in submitting on this, it is effectively mandated by government.
Consistently... crap.
I note that the article refers to the seasonal autumn effect. It is surprising that recently there has been no mention of a possible Omicron effect on auctions over the past three months when rates were commonly in the 20s. Omicron has clearly affected the hospitality, accommodation and retailing as people became COVID hesitant and less active.
Before one gets a blood rush; I am not suggesting that the market is not cooling. However, possibly Omicron may have had an effect of an early autumn/winter. It is for this reason I see some possible uncertainty as to the extent of the fall . . . and possibly why RBNZ and bank economists are recently seemingly reluctant to put a figure on this.
However, affordability, low yields, and rising interest rates remain the major headwinds.
Attending an open home is currently one of the safest places to be to avoid Omicron given the paucity of people.
I don’t think it’s a factor tbh. We have been casually looking. Open homes in February were a lot busier than they are now, and case numbers in Auckland were higher then too (not nationally). If anything, I think people have become more relaxed over the last month or so regarding group gatherings - possibly because they’ve already had it.
How did auctions fare under previous Covid variants?
Auctions are 95% boosted (by lots of lovely vendor funded advertising....)
Question.
If you own a property with a November Registered Valuation of 1 Million Dollars, and it has NO Mortgage, and you can see clearly that interest rates are going to 7% and UP, What price would you put on it to get it SOLD ?
Lots of variables, also what term is the 7% rate? For example a house down the road from me nicely renovated with a great yard just sold for 1.5.cv 1.4 house prices will do what they always have and always will. Go up go down go flat, cycles.
Thank You Tim Mordaunt.
Now for anybody else who is not in the Vested Interest Brigade ?
More detail would be required, and even then everyone would just be guesssing. I mean is it in Auckland or Ohai? Is it a dump or a newly renovated. Is it 2 or 5 bedroom, etc....?
Out of interest, why did you have the registered valuation done?
You are such a child, I'm not sure why you get so defensive and angry at anyone that goes against you (not that I even did here) but you need help.
I heard that lousy kiwi rotboxes were going to be up 5% by the end of the year.
I went all-in on this news.
The housing market is in deep trouble who in right mind would buy now in Auckland million plus for 3 bedroom tiny house on postage stamp lot no parking area on road garage full rented out to small family to help pay bills.you only have to pay 1350 per week mortgage over 30 years at 7% let hope rates don’t go higher. 10 years to save deposit cant sell because now lost deposit and in negative equity. This is future for many kiwis and the house will probably need major maintenance in that time.
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