There was another jump in auction activity around the country last week with 316 residential properties offered at the auctions monitored by interest.co.nz.
That's up from 240 the previous week, with the average under 200 a week in the weeks prior to that.
There was also a corresponding lift in sales, with 113 properties selling under the hammer at last week's auctions, up from 82 the previous week.
That lifted the overall sales rate very slightly to 36% from 34%.
The national sales rate has been remarkably stable at about a third for several months, suggesting the mood of the market remains cautious, even as the amount of activity gets a seasonal lift.
Current indications are that the market will continue at its current pace for the rest of the year before winding down for the Christmas/New Year break.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices of those that sold, are available on our Residential Auction Results page.
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54 Comments
Vendors starting to meet the market
way more selling below CV then above, those going above are multi million dollar homes in general in high end suburbs.
Thanks ITGuy, could you please link your source, I'm keen to read it, thanks
Here is one for ya: https://www.barfoot.co.nz/property/residential/north-shore-city/takapun…
CV 1.875
Sold 2017: 1.41m
Sold this morning: 1.35m
Another for good measure: https://www.barfoot.co.nz/property/residential/north-shore-city/bayview…
CV 1.2m
Sold 2017: 839k
Sold this morning: 980k
Good to see, way more falls to come :) The hard evidence cannot be denied.
Yep. I follow listings and results quite closely and the October slowdown in price falls was noticable. However in the last two weeks it has turned completely the other way - massive drops as vendors adjust. The dam is about the burst.
Getting out before the real crash. Fear?
Inventory from earlier this year not sold and now building again so the market is becoming saturated. Certain vendors have no choice to sell while FHBs can't afford houses at current interest rates - prices still have to adjust considerably to balance this out and that is assuming interest rates don't increase further (unlikely).
2017 CVs by end of next year if not worse.
Agreed. Going to be a shock in the regions as the reality wave heads into those locations. Speculative purchases of the last two years are catching fire from a financial perspective.
Some is fear, some is need to sell ie children need more bedrooms, a death or divorce etc....some may be going to aussie.
Not everyone selling will be facing mortgagee pressure. Once it goes mortgagee the sharks will be circling, tho I suspect these be the more cashed FHBers.
Within the next 12 months, 46% or $159b worth of mortgage lending will need to be refixed, and this will occur at significantly higher rates than property owners are used to paying.
This includes more than 40% of small business owners and 50% of residential property investors.
If you haven't got your mortgage debt under control by now you are ####ed
It's from the interest.co.nz site link here - https://www.interest.co.nz/property/residential-auction-results
I just scanned through, if someone had time to put all the weekly sales into a spreadsheet with cv as well you could produce more info easily. its tedius lots of passed ins.
Looking on the shore this week (overall market) it looks like some vendors have been dropping prices. With the continued gloomy outlook for next year, you do sense that some vendors are now wanting to flick off their property before there's potentially further falls. Orr of course might have more influence on this sentiment today...
A quick scroll through the daily auction results ( on Interest.co) shows you this. The link to QV estimates is very useful, they are surprisingly accurate
Similar results as before but something is missing.
What happened to Future - has the Prophet's apprentice gone on holiday?
I got him banned.
Just need to deal with the petty squabbling that adds nothing to the discussion, but regularly blights the comments section... (I'm looking at you Retired Poppy, Nifty1, HW2, TTP, Pa1nte...r)
Not sure why Pa1nter is tarred with the same brush as the others?
Pa1nter, Nifty1 and HW2 are one commenter with three accounts. I will also take onboard your feedback - cheers.
Unlikely, I seem to remember Painter and HW2 disagreeing with each other on multiple occasions.
I'm going to seem like a spruiker sometimes, because people are raising ideas and scenarios that are too far from reality to be plausible.
There's an ideal world people have in their heads, and the one we get to occupy that cannot be avoided. I've found in my business life that the best results are achieved by taking realistic stock of what's going on, and then making educated responses to it.
Retired poppy doesn't genuinely believe the cited posters are the same person. He's just requiring a bit of fuel.
I genuinely believe these three posters are the same person and I think it should be investigated by way of common IP address perhaps. Also, I have no need for extra fuel for the basis of any counter arguments so that's nothing more than a lame deflection.
I suggest you email the site admin and behold yet another bad guess then.
A few more times and you might encounter awareness of your own hubris. And from there, great things may happen.
Really R-P? Why lower yourself to this kind of rubbish? Did you like it when some others said you and Future were the same people?
I knew I wasn't future - so no, it didn't bother me 🤔
I only took such allegations, name calling, making stuff up and other various insults as convenient deflections.
I must admit though, HW2 threw the most insults😜
Are they though? I probably read Pa1nters comments more than the others to be fair but Pa1nter can be humourous and also comments a lot more about topics other than housing, I don't think they are the same commenter.
You add some god commentary at time RP, but if you can avoid the back and fwd tit for tat stuff you'll be better for it. Wouldn't like to see you banned.
26@Main. I could be a bit cack-handed with my criticism. They are all good commentators, and I do enjoy their contributions, but only up to the point that it descends into the puerile tit-for-tat nonsense.
I dabble from time to time in either a debate or pulling up people for saying false info/rediculous statements... abit of banters fine - an account like Future was too far, bordering nutcase.
Sure Slapheid, I take your point, and Pa1nter has been in the tit-for-tat stuff.
Agreed 26@Main, I think many of Pa1nter's posts are very valuable.
I agree. It's hard to let the nonsense posts go unchallenged and Pa1nter makes a good attempt but it is a futile endeavour.
Your the man Yvil
*You're
Identity number 5 (?) banned. Number 6 will pop up like a wart soon.
Mates .....if I was a multiple PI now, I would be getting out of debt ! ....so your rental income means you are positively geared ....and then some !
So even sell just one property ....but it will be different for each PI
Once people start losing their jobs (I can see this in the future for my job) ....as that is when the S really HTF !
*** NOT FINANCIAL ADVICE *** ***KNOW YOUR CUSTOMER***
I doubt we will ever get to job losses at that scale with “population easing” expected to return to pre-Covid levels and above. There is consensus across the NZ political spectrum to double down on this ponzi. Migration policies are looser than they were in 2019 despite all the promise of tougher stances.
Breaking open the floodgates to let hundreds of thousands of new consumers in each year will likely keep our economy chugging along in the foreseeable future.
The socioeconomic cost of overcrowded infrastructure, wage competition and productivity stagnation is largely borne by the forgotten middle NZ and innovative enterprises. The political classes would prefer these bugger off to greener pastures which will make the idea of importing yet more people to “reverse the brain drain” all the more appealing to the political classes.
Agree.Its a matter of when.
I pick Jan/Feb.
Most people are tired now and have been flat out this year. They will limp into xmas and have a good holiday - after that and when they take stock of retail sales changes, house sales and their pipelines for 2023... heads will have to go..
I am not an expert in housing things but i still fail to understand anyone's motivation to buy the house in auction at the present time.
Unless it's a mortgagee auction by a receiver, then it makes sense otherwise it's beyond my small brain.
Or these are the people who have a lot of money and do not care about a few dollars here and there.
I am probably having a poor man's thinking who is making his money by working hard everyday.
I went to an auction in whangarei recently thinking I could get a bargain - thought the vendor must be selling via that method to make sure it sold. There were two older couples who showed up and went nuts. Clearly they were cashed up and had nothing else to spend their money on. Good result for the vendor.
The Spring bounce we are being shown may be folks who want to get in before the announcement later today.
Good on the people who understand taking a lower offer now will best price they will get for a long time as it is obvious price’s are falling quickly.
Prices can really move lower over the Dec/Jan silly season especially as the winter headlines out of Europe will be horrible. No one likes to see people freezing to death
so many listings building up but how many buyers actually exist, at these levels -10% -20% etc
Not a great result today with a nice house in Takapuna going for 1350k, CV of 1875k and wait for it...purchased five years ago for 1410k.
1/2 Spencer Terrace, Takapuna for Sale | Barfoot & Thompson - 840132
Thats an interesting one, so interesting that oneroof could not provide an estimate on a simple inner city property, what a load of bollocks. If I had to place money on this one, it's a foriegn asian sellor exiting the market.
Thats a 28% discount to cv and a 4.3% discount on their purchase price (commision not added into that, be another 2%) , so there is a lot of paper profit burning up right there. this suburb was above CV in Nov 21.
So back to 2017 prices. This is just start of downturn, this years rates hikes are just starting to work into system will be a few years before house price’s find a floor.
In Manukau 22% property were sold in Auction and most that sold went for decent good Price in current market (10% Plus/Minus CV). Still buyers for Well presented good property in desired area. Yestrday in Raywhite Halfmoonbay Auction 3 were sold out of 12 or 14 of which two went for decent price near CV of the three sold.
Still FOMO is at play with some FHB and if they are doing well in jobs are going for it.
OCR record lift RIP Property
The death of property has been predicted many many times. And each time it looks even vaguely close to happening, in jump the government and RBNZ to save the day with endless cash and other incentives.
If it's a choice between high inflation and the property market going south, they have no choice but to prop up property once again.
If it's a choice between high inflation and the property market going south, they have no choice but to prop up property once again.
What intervention do you think would help the property market at this stage, Davo36?
By relentlessly raising interest rates this year, the government is clearly choosing to fight inflation, rather than prop up the property market this time round? No?
At the end of the day, the biggest purchase that majority of people make in their lifetimes are houses. If you live in NZ (or plan to live in NZ) for whichever reason that is, most people would aspire to own a home they live in. Yes, there are some who just want to rent their entire lives, and that is completely OK as it's their choice. But majority of the people would want to own the asset.
Zooming out, there will always be choppy waters up and down when it comes to housing prices. If you asked someone 40-50 years ago, the selling prices were next to nothing in comparison to today's prices. But at that point in time, the price was seen as absurd and ridiculously high as well. You fast forward to today, and we are still having the same debate and sentiment. There will never be "one price" that pleases everyone. But if you zoom out, you will always see that in the long run, everything sustains and continues to march on.
The best time to buy is the best time you feel is right. If you could time the market, then you wouldn't be posting on this discussion board. You would be guessing next week's lotto numbers and hitting the jackpot every single time.
-7
I like how "The best time to buy was yesterday" has now morphed into "The best time to buy depends on your circumstances", or "The best time to buy is the best time you feel is right".
The real estate agents and ticket clippers out there now bombard me with "Timing the market is a fool's game". Well, I might not be able to predict when the market will turn, but I'm pretty sure that only a fool will argue that prices don't have further to fall.
They think it will bounce or put fear into people that it's hard to time. But it's not a ball, it's like kids slime when it hits the bottom, it's going to stick there for awhile.
40 - 50 years ago house price 3 times income. Now deposit is 3 times income or more. Can't buy a house if you can't afford it. Market is falling people haven't started panicking yet, that will come.
FONS
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