Two long weekends in a row saw fewer properties on offer in Barfoot & Thompson's auction rooms

Property / news

The auction sales rate was particularly low for properties in Manukau last week

23rd Apr 22, 7:48am by Greg Ninness

There was a sharp drop in activity in Barfoot & Thompson's auction rooms in the week after Easter .

The agency marketed 101 residential properties for auction over the week from 16-22 April, compared to 181 the previous week.

However the drop in numbers should not have been a surprise. Not only was last week a short week, it was also squeezed between two long weekends and many people would have taken off the four days in between to have an extended break, potentially reducing the pool of available bidders at auction.

So its likely many vendors either brought forward their auctions to before Easter, or postponed them until after Anzac weekend.

Barfoots have more than 120 residential properties scheduled for auction in the coming week, which is also a short week.

The overall sales rate also slipped last week, down to 18% from 24% the previous week.

The sales rate was particularly low for Manukau properties last week, with just one of the 21 properties offered selling under the hammer,

The table below shows the sales rates for all districts.

Details of the individual properties offered at all of the auctions monitored by interest.co.nz are available on our Residential Auction Results page.

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82 Comments

by Dgm | 23rd Apr 22, 7:59am 1650657568

Wow, 18%.. I guess the spruikers would claim this is a stable market and nothing to see here..

The housing market is buckling under its own weight..

by Gummy Bear Hero | 23rd Apr 22, 8:41am 1650660086

... even if house prices collapse 30 % , that'll still only take them back to where they were 3 or 4 years ago ... and unless my memory fails me , Hugh Pavletich of Demographia was complaining of the insane HP's in NZ back then , as a ratio of total household income ...

by HouseMouse | 23rd Apr 22, 9:50am 1650664228

Still, gives a few more FHBs hope than exists now gummy.

right now, it’s very hard for even households with incomes at the high end of middle to buy. Bring prices back down 30% then they have a chance again.

by Roy1 | 23rd Apr 22, 9:45am 1650663923

Wow just 1 out of 21 sold in Manukau,where it all started and which had one of the biggest uptrend.

It is more as vendors expectation are still very high and are not ready the overcome the greed and accept the fact.

by Justa comment | 23rd Apr 22, 9:55am 1650664522

yes once the REs lose their income they will be changing their tune and saying their vendors "need to be realistic". Buyers will not be keen for 35k a year in interest I believe, and the banks wont give it to them either. There will be less mortgages over 500k now.

by JimboJones | 23rd Apr 22, 9:56am 1650664612

Not surprised, prices in manukau were even more stupid than elsewhere. $1 mil to buy a crap house in a crap neighbourhood makes no sense at all.

by andrew6 | 23rd Apr 22, 10:18am 1650665919

Dgm universal truth what goes up comes down and will eventually goes up again but that eventually will be a long wait for now.

Any idea when was the last time that Manukau had success rate of 5%.

by Tee | 23rd Apr 22, 8:00am 1650657625

OCR rate announcement was on 13 April.

Was it like everyone talking about higher interest rates.

Less trades people in Bunnings.

Who will give in, buyers or sellers.

Who will buy an old, do-up rental property today. Two years ago, you could flip anything.

by Miguel | 23rd Apr 22, 9:16am 1650662174

It’s not a case of who will give in. With rapidly rising interest rates most buyers can’t afford to pay what sellers are asking. Sellers are the ones who will have to adjust to the changing conditions

by house hunter | 23rd Apr 22, 8:30am 1650659438

It's taking a while though. In particular vendors are extremely reluctant to sell for less than what they purchased a property for.

The other thing that is taking a while to change is the attitude of agents. Many/most are still hopeful that the current market situation is but a short lived lull. Not much humility out there - a lot of these agents are used to the properties selling themselves and being able to call all the shots. Getting most agents to give you a somewhat honest and realistic price expectation is challenging.

by Kiwi Tim | 23rd Apr 22, 2:18pm 1650680311

I have a few agent mates, honestly they are so convinced the cccfa amendments in June will turn things around. I can’t be bothered with the argument, i just agree and think man how many mortgage brokers have you been listening to. Are we not going to bring up the fact that most people can’t afford $70k in interest payments a year.

by Ahuhyeah | 23rd Apr 22, 3:24pm 1650684287

What's the saying... it's difficult to convince a person of something if their livelihood depends on it... or something that effect. Too lazy today to find and reference it properly.

by malamah | 23rd Apr 22, 7:54pm 1650700481

Seems like a good time to chime in with the next potential nail in the housing market coffin:

https://www.rbnz.govt.nz/regulation-and-supervision/banks/consultations…

by swingtrader | 23rd Apr 22, 10:33am 1650666835

The difference between now and 2008 was that money was getting cheaper by the day back then but now money is getting more costly by the day, forcing some sellers to take action.

by taimaiakka0 | 23rd Apr 22, 6:45pm 1650696323

This is very true. NZ has not witnessed any serious fall till now, so is taken for granted that prices will never fall.

Even earlier market had had fallen but downtrend lasted for a very short period, so real estate agents are playing on that fear. Forgetting that this time is different as earlier to stimulate the market, interest rate were dropped but this time market is falling and interest have just started to go up and will keep going up.

by Nifty1 | 23rd Apr 22, 8:17am 1650658634

B&T are the worst. Honestly, watch one of their auctions, it's hard to believe how bad they are across the board - from the auctioneer rambling out passive aggressive comments to the agents sitting around clueless. Why anyone would list with them is beyond me.

by hum | 23rd Apr 22, 8:17am 1650658630

They are all the same

by Nifty1 | 23rd Apr 22, 8:52am 1650660774

They're actually not, if you go to a variety of agencies open homes and auctions you'll see the difference.

by Brock Landers | 23rd Apr 22, 9:06am 1650661583

They are extremely condescending.

Astute buyers are now giving them the middle finger.

by Nifty1 | 23rd Apr 22, 10:06am 1650665218

Oh and how they hate it... thats where I've experienced real hostility with B&T. Try and negotiate with them...

by Justa comment | 23rd Apr 22, 11:12am 1650669168

They are about to get a lot friendlier with buyers believe me

by Zen20 | 23rd Apr 22, 8:34am 1650659689

Time To Panic

by HouseMouse | 23rd Apr 22, 11:14am 1650669243

Hehe

Don’t worry, we will have a soft or flaccid (hat tip Brock) landing!

by tothepoint | 23rd Apr 22, 2:12pm 1650679942

Seven months since the start of the market downturn - and the upper-end of the housing market continues to set new price records......

Must be a worry for the DGM.

In the medium/long term, property has a habit of turning up trumps. And that's the timeframe that most interests seasoned investors.

TTP

by DTRH | 23rd Apr 22, 2:57pm 1650682644

TTP first rule of building strong foundations or top will fall over, just a matter of time it will make a mess and if anyone has been silly and purchased a high end house, big losses will occur unless keeping for 15 years.

by Brock Landers | 23rd Apr 22, 3:19pm 1650683984

Your seasoned boomer mates will be getting their nappies changed down at Ryman by the time property makes any sense as an investment again.

by HouseMouse | 23rd Apr 22, 4:44pm 1650689043

Please never leave, we need one or two clowns to stay and entertain us.

Especially since CWBW left.

by JimboJones | 23rd Apr 22, 4:53pm 1650689625

I think CWBW can no longer afford an internet connection

by Mrs The Point | 23rd Apr 22, 4:57pm 1650689852

He's just in the basement with his boys....Ewww!

by Brock Landers | 23rd Apr 22, 5:01pm 1650690062

Did he die of covid or humiliation?

by Zen20 | 23rd Apr 22, 5:39pm 1650692394

I think the boys left him handcuffed in his gimp suit and got the eff out of the dodge basement while they had the chance

by ex agent | 23rd Apr 22, 5:39pm 1650692371

Why do you gloat that houses are going up in price. So many people cannot even afford to buy a dump in the regions as they have gone up also. What makes you tick? When we are kind to our neighbour is when we feel really good about life. Being nasty to DGM!s as you call them simply amazes me.

by Gummy Bear Hero | 23rd Apr 22, 8:37am 1650659850

.. are we surprised , auctions work best when the mania is in full flight ... when FOMO rages , and we're swept up in a flood of emotion ... really really must have that tulip bulb ... ooops , my bad , wrong bubble .... really really must have that draughty w/b wreck on 650 sq. meters ....

Different bubble , same end result : Pop !

by DTRH | 23rd Apr 22, 9:03am 1650661403

18% must be last few people who don’t keep up with news.why would anyone buy at this point interest rates raising inflation sky high NDZ tumbling which will keep inflation high. People just need to wait as everything in housing market will cost less going forward.

by Brock Landers | 23rd Apr 22, 9:15am 1650662121

There are always going to be people buying and selling in the same market.

by Waikatohome | 23rd Apr 22, 9:15am 1650662140

I still speak with people who think houses are a one way bet. There seem to be people who believe everything they hear from the Hosk and on the Newstalk ZB property hour. Too lazy to do their own research. (I do love ZB, I just make sure that I treat most of what is said with a healthy dose of scepticism and try not to shout at the radio).

by Brock Landers | 23rd Apr 22, 9:20am 1650662421

Houses are a one-way bet right now. Some people just have the direction confused.

by Justa comment | 23rd Apr 22, 9:50am 1650664230

touche'

by Carlos67 | 25th Apr 22, 12:52pm 1650847920

Maybe right now but you would be pretty stupid to think that house prices will be cheaper than they are now in 10 years time.

by swingtrader | 23rd Apr 22, 10:35am 1650666955

I have a young colleague looking to buy right now. She is still convinced house prices never go down (used those exact words). Not everyone is ear to the ground seeking the most astute info.

by IT GUY | 23rd Apr 22, 10:41am 1650667270

There are 19 vendors in Manukau looking for their number......

by HouseMouse | 23rd Apr 22, 11:12am 1650669148

Just shows how ‘successful’ the whole brain washing narrative has been…

Those who can think critically and independently didn’t buy it!

by Justa comment | 23rd Apr 22, 11:15am 1650669351

Yes I have noticed that with my relatives, over the last 12 years stocks and houses have only gone up, some of the young think 'investments' always go up.

by andrew6 | 23rd Apr 22, 9:24am 1650662664

Can someone advise what was the listing status last year during same period of two long weekends to compare as this is not the first time that we are two long weekend back to back.

by taimaiakka0 | 23rd Apr 22, 9:56am 1650664588

The auction sales rate was particularly low for properties in Manukau last week

Greg, it is an understatement to say that auction sales rate was low in Manukau. Only one selling out of twenty one is DEAD. Should auction sales was dead in Maukau as sometime only 1 gets sold but is out of 5 or 8 but not out of 21.

by IT GUY | 23rd Apr 22, 10:30am 1650666602

That Parrot is Dead! No its not, its just resting !

by Carlos67 | 23rd Apr 22, 10:37am 1650667039

RE's still pushing the Auction down here as the method of sale. Said it before but they are using it to supplement their income when they know full well that the chances are it will not sell at auction. Really its the people that are to blame, they are listening to the RE like they listen to their Doctor and take everything they say as fact. Yes houses in my street are still selling but not at auction, its turning into a long winded negotiation or having a price on it that is still now unrealistic in the current market. I have some 20 properties on my watchlist and only 1 has sold in about 8 weeks.

by JimboJones | 23rd Apr 22, 1:47pm 1650678473

You’d be pretty pissed if your friendly agent told you auction is the best way to sell, took your money to pay for the auction, then only 1 in 21 sold at auction.

by Clementé | 23rd Apr 22, 4:14pm 1650687289

when really they have no clue about statistics, basic maths or debt cycles.

However they can buy a nice suit and know that Audi is better than Toyota when pulling up in the drive.

I suspect they'll be a few teeth whitening businesses go under in the next 24 months.

by Carinaz | 23rd Apr 22, 10:37am 1650667070

Check this out :

https://www.macrobusiness.com.au/2022/04/walls-close-in-on-new-zealand-…

It highlights that based on median Auckland price of $1190000 with 20% deposit, in March'22 mortgage repayment was $5157 per month at 5.08% and in early 2023 will be $6546 based on 7.33%.

What it does not mention is that last year it was $3912 based on 2.8%.

So compare to today will jump by 25% and if one compare to last year will be jump of more than 60%.

by Brock Landers | 23rd Apr 22, 10:48am 1650667709

Maths never lies. Unlike estate agents.

by taimaiakka0 | 23rd Apr 22, 10:55am 1650668126

How many can afford weekly repayment of $1600 or even $1000 or even 50% $800 per week.

Wait and see.

As someone made a good comment that in 2008 when market was falling had luxury of falling interest rate and today in falling housing market, interest rates are rising - deadly combination and rates are rising not by choice but being forced by fundamental.

So this housing downturn could be worse than ever before.

by HouseMouse | 23rd Apr 22, 11:11am 1650669061

Yeah and isn’t it amazing how it seems that this country’s economists can’t do basic math either. If They could, they wouldn’t have been forecasting small gains or small falls in house prices late last year.

of course, they might just be trying to deceive us like the RE agents.

by IT GUY | 23rd Apr 22, 12:40pm 1650674413

HouseMouse, the main bank Economists work for the biggest 4 leveraged real estate funding Banks (hedge funds) in NZ. The entire book remains on balance sheet. Can't be scaring the women and children now...... David Hisco warned of the excess in the Market

https://www.nzherald.co.nz/business/david-hisco-housing-and-nz-dollar-o…; July 21 2016

ANZ chief executive David Hisco joins the chorus of financial establishment figures warning that too little is being done to address a dangerously overcooked Auckland housing market. i think he said Having been in banking since 1980 I have seen this movie before. The ending is pretty much the same - sometimes a little plot twist, but usually messy.

by Independent_Observer | 23rd Apr 22, 2:04pm 1650679477

Yes and things have become substantially more crazy since Hisco made those remarks 6 years ago...2016 looks sensible compared to what we have in 2022.

by IT GUY | 23rd Apr 22, 7:30pm 1650699012

Hisco was right back then.... the affordable bid is much much lower now as well due to CCC and higher rates... This does represent the chance to buy a decent bach for the family trust at a knock down price next / later this or next year if you are not leveraged. The people holding Manurewa rentals are going back to the future....

by HW2 | 23rd Apr 22, 9:50pm 1650707427

You cannot change the present by repeating the past ie buying baches and second homes. That comment by It guy probably sums up why the housing market will not fall to any extent due to market behaviours and latent demand.

by HouseMouse | 23rd Apr 22, 10:09pm 1650708540

Wishful, and I would suggest deluded, thinking.

by Toye | 23rd Apr 22, 10:58am 1650668312

2.8%? Many people fixed at closer to 2.2%

Essentially many people will be paying double for their mortgage.

How many people have a spare $2000 or $3000 a month when the cost of everything is going up?

Its insane.

by JimboJones | 23rd Apr 22, 1:57pm 1650679055

“The [RBNZ’s] own research, released to the Herald under the Official Information Act, reckons as many as half (49 per cent) of the people who bought their first home last year during the market peak could face “serviceability stress” if interest rates hit 6 per cent.”

Shouldn’t they have done that research before letting them take out those loans? Being responsible for bank stability and all, and just 14 years ago being shown by the US just what could happen.

by IT GUY | 23rd Apr 22, 10:51am 1650667909

There are quite a few small commercial level Lendors out there, that have 6-10 rentals, who have never experienced a rising interest rate environment. They have no interest rate hedging in place at all, most interest only fixed 2 years about 1.5 years ago, they never hedged 30-40% of their book at 5year. now banks are asking them to lighten the debt levels, But they still want last Decembers prices. When the GFC came about, the US entered full on QE, Europe went -ve int rates, and china printed and saved NZ/Aussie. This time no one is co=ordinated and FED is having to fight inflation, Europe looking to sanction Russia, will force EU into recession, and China is locked up, already their property bubble has imploded, there tech stocks smashed due to CCP regulator...... no one will come to NZ rescue this time. The good news is that we have food and water and hydropower, the bad news is that the closing of the oil refinery means all our petrol and diesel has to come by ship from Singapore..... We live in very interesting times, certainly not a great time to be having to sell a house

by mja | 23rd Apr 22, 4:33pm 1650688394

Certain developers in Wgtn went under, after they insisted on 2007 prices as 2008 progressed.

by IT GUY | 23rd Apr 22, 7:31pm 1650699087

not developers, leverages business people....

by Toye | 23rd Apr 22, 10:53am 1650667981

Its the race to 0, will B&T hit it first?

by northman46 | 23rd Apr 22, 12:02pm 1650672168

ThE mArKeT iS rEmArKaBlY rEsiLiEnT

by ex agent | 23rd Apr 22, 1:46pm 1650678378

It will not happen overnight but the prices of housing especially at the lower end of the market will drop in price slowly but surely. Absolutely everything we do and get is going up in price. And it will continue to do so. Throw increasing interest rates in the mix you then get stretched household budgets. Where I live agents say it is easier to sell a $1.5m house than a $600k home. People with higher incomes generally have more equity and a better ability to service debt. House prices in NZ are starting to fall. There will be exceptions as trophy homes attract the well heeled. As interest rates and other living costs rise there will be increasing pressure on house prices.

by Independent_Observer | 23rd Apr 22, 2:08pm 1650679735

Inequality has been increasing since the 1980's as interest rates were pushed to zero....the wealthy are in a far better place (greater wealth concentration) with more and more of society doing it tough. No wonder houses at the bottom end of the market aren't selling...we have punished people in the bottom part of society for decades now...where are they meant to find the deposit to purchase an overpriced house when landlords have been enriching themselves by raising rents while their costs evaporate (mortgage rates) and house prices skyrocket? Perhaps we should have a wealth transfer back in the other direction now so that our society is more equal...more stable...less financially risky...where it is about community and society and not 'me' trying to 'get ahead' and turn my fellow citizen into my rent slave.

by ex agent | 23rd Apr 22, 2:31pm 1650681093

Yes the boomers have certainly shown their ability to be greedy. They often remind us how hard it for them financially. In fact they have had the best of it. I am a boomer. I would be regarded as being very wealthy if I disclosed my assets on this site. I have been lucky as I was well educated and had the ability to pay off personal debt then take on business debt. My goal is to share my luck with my children and grandchildren well before I die.

by Jonny_Utah | 23rd Apr 22, 3:36pm 1650685008

It’s not just that. Think of all the wasted capital thrown at stupid and unproductive ventures on the basis of near zero hurdle rates.

by Sam B | 23rd Apr 22, 11:27pm 1650713229

That's the other shoe that has yet to drop. The trillions invested in utterly worthless tech ventures, dotcom bubble 2.0...

by HW2 | 23rd Apr 22, 9:56pm 1650707780

You make it sound so bad, I dont think anything has changed over 60 years. Check the stats IO and see that the 1960s had a similar percentage of home ownership around two-thirds. In fact you will find that there were far fewer state house rentals then which correlates to more private rentals

by RickStrauss | 25th Apr 22, 8:54am 1650833673

That's not true at all re home ownership or stats on it.

by HouseMouse | 23rd Apr 22, 4:46pm 1650689202

Absolutely everything we do and get is going up in price.

Apart from property values!!!!

by JimboJones | 23rd Apr 22, 4:50pm 1650689456

And supermarket beer

by Brock Landers | 23rd Apr 22, 5:03pm 1650690217

Fancy pants with your supermarket beer.

No such luxuries in West Auckland.

by hum | 23rd Apr 22, 5:19pm 1650691147

I have stopped drinking beer as they all taste terrrrible and give me headache very quickly, i can't find a decent beer here in NZ.

You either have the cheap lager watered down to death, or the extra hoppy stuff that taste like medecin(craft it is called).

by Ngrrk | 23rd Apr 22, 6:29pm 1650695370

Order online from a shop that stocks quality British, Belgian or German beer.

by IT GUY | 23rd Apr 22, 7:26pm 1650698801

Perhaps you need to start home brewing your own best bitter? Perhaps a Kentish ale? All grain not the kits.

by CrispyKahawai | 23rd Apr 22, 8:16pm 1650701789

Sounds like a 'you' problem. There is no shortage of incredible local beers in Auckland, and most of NZ. Urbanaut, Behemoth, and Garage project are all under a 5 minute drive from me and most of them can be found in New World, and on a good day, maybe Countdown.

by HouseMouse | 23rd Apr 22, 8:26pm 1650702390

Can still get a good Aussie shiraz for $20, that hasn't changed in at least the last 5 years!

by AJ123 | 23rd Apr 22, 6:15pm 1650694520

Below 20% means, it is not going to rebound till next summer.

by IT GUY | 23rd Apr 22, 7:36pm 1650699379

What are you smoking? the rebound has to happen once the markets find price discovery and clears people who need to sell.....we have had years of upwards movements, crashes happen faster... Rebound may be 2028 i hope you thinking clearance rate rebounds not price?