As auction activity winds down for the year the sales rate improves slightly

Property / news

Just under a third sold under the hammer at last week's residential property auctions

12th Dec 22, 1:18pm by Greg Ninness

Activity is slowly winding down in the auction rooms monitored by interest.co.nz as the market heads towards the Christmas break.

There were 251 residential properties on offer around the country at the auctions monitored by interest.co.nz last week (3-9 December), compared to 287 the previous week and 307 the week before that.

Of the 251 properties on offer last week, 76 sold under the hammer, exactly the same number as the previous week.

That pushed the overall sales rate up slightly to 30% from 26%.

The highest levels of activity last week were in Canterbury, on Auckland's North Shore and in the city's central suburbs, with the sales rates ranging from 29% in central Auckland to 46% in Canterbury - the table below shows the district-by-district results.

Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices for those that sold, are available on our Residential Auction Results page.

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47 Comments

by IT GUY | 12th Dec 22, 1:22pm 1670804562

I wonder what happened to the prices being achieved , are they up down or flat?

by Mrs The Point | 12th Dec 22, 1:29pm 1670804997

I'll take a punt and say slightly negative growth, continuing the resilient, flat, sideways decline of recent months.

by starrider | 12th Dec 22, 2:43pm 1670809385

Looks like we are still in the "Want to sell" phase. Give it 3 to 6 months and then we will see the "Need to sell" setting in, this is when the real price correction will be documented.

The average time on the market is stretching past 2 months. With an ever-growing list of properties languishing for over 4 months (almost exclusively due to vendors not meeting the market). There will be a point where the "Need to Sell" will start setting lower prices, lower auction reserves and the "Want to Sell" will either withdraw or slash their asking price. We are already at 30,000 active listings nationwide, and climbing, all the while the amount of completed sales continues to crater.

Realtors, across the land, are still in full denial mode and still refusing to post a listing price. I would love to see the number of listings that have been withdrawn, this year, compared to 2018,2019,2020, and 2021. Knowing the NZ real estate market - this data may not be available.

by titans1350 | 12th Dec 22, 4:07pm 1670814466

I'm a broken record on this but its been really getting me fired up that everything is being listed as TBC. I know they are simply protecting their business but if you want to get under my skin, list it as 'TBC'!

by Nellbell | 12th Dec 22, 4:30pm 1670815805

I agree, there’s a real effort were I am to not disclose the low sales and try to pretend the market is in better shape than it is. We keep getting the couple of outlier high sales quoted to us, I think they are telling listing vendors as well that they will get them that price too - thus some rediculous vendor expectations. With no sales data being made public at present we just have to rely on auction data and the monthly HPI release….. it should be out in a day or two.

by Carlos67 | 12th Dec 22, 4:10pm 1670814607

Very few people actually "Need to Sell". 90% of sellers are bored and are looking to move for the fun of it, they don't actually "Need" to sell. Seen it time and time again, they sell and literally move up the road, once it was a few doors down they didn't even need a removal truck. My mother just bought in Silverdale, the sellers moved to a bigger more expensive house in Orewa, totally unnecessary at the end of the day.

by Fitzgerald | 12th Dec 22, 5:19pm 1670818767

In recent years, most residential property investors have taken out loans at very high DTIs.

https://www.interest.co.nz/property/113230/new-reserve-bank-debt-income…

by IT GUY | 12th Dec 22, 6:12pm 1670821934

Wow 10% will need to sell, makes covid look pretty mild.

by Yvil | 12th Dec 22, 4:47pm 1670816872

REINZ report out tomorrow will have the answers.

by Nellbell | 12th Dec 22, 4:51pm 1670817102

Do you know it’s tomorrow, or think it’s t9morrow?

by Nellbell | 12th Dec 22, 4:53pm 1670817188

I will be impressed Yvil if you are right

by stacking_cheddar | 12th Dec 22, 9:13pm 1670832826

QV also out tomorrow.. I expect the media to headline the less alarming figure of the two. QV is pretty consistently down across the board, just slightly less so than last month. I'm expecting to read 'quarterly declines slow' 'not all bad news for homeowners' etc etc. The moment the journos start ferreting out the more alarming stats and running with those is the moment we begin the next sharp leg down. Yelling fire in a movie theatre.

by stacking_cheddar | 12th Dec 22, 9:28pm 1670833690

For example...Hutt Valley still bombing faster than Levi Hawken according to QV :-0

by Mrs The Point | 12th Dec 22, 1:35pm 1670805300

Oh, the Mighty Waikato. None from 13. Must be embarrassing being a REA or the auctioneer at one of these events. No bids, no buy, pass it by.

by HW2 | 12th Dec 22, 1:44pm 1670805896

That's strange considering the case of the missing 500 dollars. That home sold?

by Nzdan | 12th Dec 22, 1:51pm 1670806281

23 November auction.

by Chairman Moa | 12th Dec 22, 3:02pm 1670810569

Completely irrelevant and ridiculous comment deleted. - GN.

by SND | 13th Dec 22, 9:12am 1670875930

I do believe in the "resilient" factor of the market in NZ and Waikato definitely is the crown champion.

by DTRH | 12th Dec 22, 1:46pm 1670806005

With over 13000 for sale in Auckland the 44 sold at auction is highlighting the continuing weakness in housing market prices will continue to fall.

by IT GUY | 12th Dec 22, 1:50pm 1670806220

How is the average days to sell calculated, if its truely 48 days on average ie some less some more does that mean all 13,000 will clear in 48 days ie 270 a day? I am not seeing that many SOLD stickers going up?

by HW2 | 12th Dec 22, 2:00pm 1670806821

Also highlights that FHB want time for Dd without having to put that cost up front. But I could be wrong.

by IT GUY | 12th Dec 22, 2:06pm 1670807205

If more banks are requiring valuation reports before agreeing finance as reported, Most FHBers will be giving the auctions a miss.

Funny they are calling them Auctions, most get no bids, some get one bid. It's truely a rare thing to see multiple bids at an auction nowadays. Oh the good ole days.

by HW2 | 12th Dec 22, 2:17pm 1670807840

Yep good like 2011 :)

Compared to then what year are we now.

by HW2 | 12th Dec 22, 3:46pm 1670813177

Tiktok. The world renowned property cycle expert does not know.

by Nifty1 | 12th Dec 22, 3:19pm 1670811587

IT GUY in what circumstances are banks requiring more valuations - in particular for FHBs?

by IT GUY | 12th Dec 22, 3:34pm 1670812485

see below , i must have missed hitting reply

by Nifty1 | 12th Dec 22, 4:22pm 1670815379

Please stick to factual info IT GUY...

by Yvil | 12th Dec 22, 4:50pm 1670817038

Interest does NOT follow ALL the auctions, so it makes no sense comparing all the houses for sale with the few sample auctions Interest reports on.

by Carlos67 | 12th Dec 22, 1:52pm 1670806321

All this is showing now is that sale by Auction is dead. Sales are still happening outside of Auctions, its now more of a case of listing with a price or by negotiation. Plenty of houses for sale giving you more choice, its still not easy to find a decent quality build in a nice area that you would call a "Bargain" and these seller know it.

by Caughtinthemiddle | 12th Dec 22, 2:15pm 1670807701

It’s all about the sale price. The market is flat and week to week variations are just that.

The critical data is HPI. Only a couple of days to wait!

by IT GUY | 12th Dec 22, 2:17pm 1670807823

I thought HPI release some data on the 30th nov whats due out this week??

by Nellbell | 12th Dec 22, 4:20pm 1670815232

Yes, isn’t December the time that it was thought the HPI would really shift downward?

I think you may be right, some very low auction prices.

A tender price here that must have been very low as, despite it selling, nothing is on any of the usual valuation sites about the sale, or even being advertised - sales used to be crowed from th3 rooftops here. A number of the valuation sites have had the address pulled down off the site so no page at all shows. It got bought for a very high price - 1 $million (55%) over its CV - last year at the height. Anyway it’s the buyers/sellers choice if they want to keep prices confidential for a bit, but would be good to know if a shift is starting.

by taimaiakka0 | 12th Dec 22, 3:23pm 1670811813

Noticed many vendors are selling at realistic price or best bid, if they get one instead of waiting.

by IT GUY | 12th Dec 22, 3:35pm 1670812556

Real Estate Agents all over NZ are saying that finance is as much a sticking point as price to get deals done, especially so in the regions. Finance normally hinges on valuations not emotions.

Pretty normal at this point in the cycle, next will come a huge number of failed deals as the valuer simply values the property 15% lower than the vender had hoped for and agreed to sell at.

History is no mystery. Bank credit departments remember Blue Chip.....

The easiest properties to value are developement sites as its simply a $ per s m calc..... in AKL at the peak it got to about $4,100 per s m, right now its about $2,050 per s m.

by Nifty1 | 12th Dec 22, 4:04pm 1670814265

What are your sources on this - please link?

Finance for FHB's is certainly difficult due to affordability...haven't heard anywhere about it being more difficult due to the need for more valuations or where FHBs can't get finance because valuations don't stack up on an existing properties - especially auctions as you alluded thats why FHBs arent bidding?

by Juzz | 12th Dec 22, 5:55pm 1670820933

Many FHB will have high LVR, therefore settlements can be longer as their banks may have their LVR allocation used up for the month and possibly the next month. Also high LVR means the bank won't lend more that the current valuation of that home.

by DTRH | 12th Dec 22, 4:24pm 1670815461

If you buy today the house you purchased will be worth less this time next year. if you look at the trends in 12 months another 20% off looks on the cards.

by Yvil | 12th Dec 22, 4:53pm 1670817214

Wow, you can tell the future 12 months ahead! That's truely amazing! You should apply for a job at a bank or a hedge fund company, you will be paid $ Millions!

by Juzz | 12th Dec 22, 5:58pm 1670821082

Given the current economic situation and trend, where do you see house prices going? The moon perhaps?

by IT GUY | 12th Dec 22, 6:23pm 1670822608

he will not answer your question he is a spruiker

he believes property can only ever go up

its always a good time to buy

the only day better than today to buy was yesterday.

by Yvil | 12th Dec 22, 7:43pm 1670827410

he will not answer your question he is a spruiker

he believes property can only ever go up

its always a good time to buy

the only day better than today to buy was yesterday.

by Yvil | 12th Dec 22, 7:45pm 1670827508

"Given the current economic situation and trend, where do you see house prices going? The moon perhaps?"

I see them going down.

by IT GUY | 12th Dec 22, 6:21pm 1670822482

Combover left those roles, maybe he wasn't good at it.......

by stefanblaise | 12th Dec 22, 5:34pm 1670819661

In Stalemate, lost time, the most expensive commodity, is rarely credited its true value.

by Nellbell | 12th Dec 22, 5:43pm 1670820184

An honest question. Who has the lost time? The seller?

by stefanblaise | 12th Dec 22, 7:59pm 1670828385

It's better for both parties to accept reality faster and move on to the reality of the possibility of a better game.

by Fitzgerald | 12th Dec 22, 8:50pm 1670831419

"To lose patience is to lose the battle." - Mahatma Ghandi.