Residential auction activity slow but steady for the time of year

Just over a third selling under the hammer looks like the new normal in the auction rooms

Property / news

Just over a third selling under the hammer looks like the new normal in the auction rooms

27th Feb 23, 10:54am by Greg Ninness

Residential auction activity seems to have settled into a fairly steady rhythm in spite of the weather-related disruptions in the upper North Island.

Last week (18-24 February) interest.co.nz monitored 244 residential property auctions around the country, slightly down from 251 the previous week.

Of those, sales were achieved on 88 properties, giving an overall sales rate of 36%, also slightly down from 38% the previous week - see the table below for the regional results.

Interest.co.nz was able to match the selling prices and rating valuations of 79 of the properties that sold, with exactly a third fetching prices more than or equal to their rating valuations and two thirds selling for less.

That was also in line with the previous week's selling price versus rating valuation results.

Overall, the market remains relatively quiet for what is usually the busiest time of the year, but auction room activity remains reasonably consistent week by week.

Details of all of the individual properties offered at 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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20 Comments

by quattroporte | 27th Feb 23, 11:04am 1677449065

Uptake in auction sales suggests we may have reached the bottom? Not the terrible 15% clearance rate we've seen for months

by Black and White | 27th Feb 23, 11:37am 1677451031

You are dreaming Mate.

Go have a look at Ireland and spain after the GFC that will give you an idea where we are heading

by Matt_09 | 27th Feb 23, 11:56am 1677452187

Completely different fundamentals, mate

by scooter_mcgavin | 27th Feb 23, 12:04pm 1677452668

You're right Matt - ours are worse!

by Matt_09 | 27th Feb 23, 12:58pm 1677455901

😂

by Albert2020 | 27th Feb 23, 11:58am 1677452326

No, it means sellers expectations are finally being met with reality as evident in the increasing number of homes being sold below the RV.

by Speedmax | 27th Feb 23, 3:32pm 1677465149

It also means that 2/3 of sellers still think their houses are worth more than the market is willing to pay, so low activity and/or further falls are assured (and low activity will feed further falls anyway)

by RCD | 27th Feb 23, 5:02pm 1677470557

Rodney 0 out 10 is indicative of the pricing distortions that occurred in this region, still expectations are in the stratosphere.

by bw | 27th Feb 23, 11:08am 1677449325

So 156 of the 244 properties that hoped to sell (or why else did they go to market?) remain unsold. What are they going to do now?

I reckon they should just sit it out and wait for the rebound. After all, there's an election coming, and it's raining, and interest rates have peaked, and the borders are going to be swung wide open and.. (sarc/off)

by HouseMouse | 27th Feb 23, 11:16am 1677449798

Ex-Christchurch still very weak

by bw | 27th Feb 23, 11:47am 1677451653

Looks about right.

I did think 21 Kana Street had done pretty well though, selling for $700,000 against the ever trusted RV of $155,000. But a rub of the eyes revealed the actual transaction price was $70,000.

by nguturoa | 27th Feb 23, 12:53pm 1677455619

Two 100% and one 62% skewing the total percentage of 36%?

by Yvil | 27th Feb 23, 1:28pm 1677457734

Lucky the three 0% don't "skew the total percentage" lol.

88 sold out of 244 is 36%. 88/244 = 0.36 Maths not your strengh. Various local percentages "don't skew" the overall rate of 36%

by Nzdan | 27th Feb 23, 2:29pm 1677461359

He's probably the sort to put all the % sold totals into an excel spreadsheet column, and run an average calculation on those raw numbers.

Never mind that changing a "100%" result to 0% will take 5% off the average %, but is only 1 out of 244 (0.4%) of the number of properties.

by nguturoa | 27th Feb 23, 4:46pm 1677469578

I asked a question, you answered. Thanks

No need to be rude. Humility is a good thing to have. Cheers

by Dgm | 28th Feb 23, 8:56am 1677527780

Authoritarians do not have humility, we have all witnessed his behavior

by J.C. | 27th Feb 23, 1:15pm 1677456928

Many NZers are not likely to be emotionally, mentally, and financially equipped for the housing market and prices not to behave as they expect and / or have been told.

And that is the problem with bubbles. If house price inflation were more sober and boring, the economy and households would be less fragile. But given the ruling elite doubled down on ponzinomics, everyone is left more vulnerable, whether they wanted to participate or not.

by Rob Reid | 27th Feb 23, 9:11pm 1677485463

Works that way at a national level too. The Fed could jack rates way up in the late 70s/80s because debt was lower. Now, adding a measly 0.5% to get a slightly less negative real rate is a move that needs to be carefully considered lest they go too far and tip a vital domino.

by NZGecko | 28th Feb 23, 7:05am 1677521125

Unfortunately the over leveraged need to be burnt and not saved by a white knight....aka the Govt.

I know many, that looked at me like I was an alien, when I warned them in 2021, that this new thing to all them (inflation) was naturally going to lead to a expensive debt and a crashing housing market.

I warned not to buy still more houses with massive leverage. I was repeatedly told " house prices simply cannot fall" "impossible, you cannot lose"

After hearing all this from many, I thought OMG.....we are for the most epic crash as this prevailing mentality ticked every box of a manic craze - that always lead to a massive bust.

We are only part way into this crash.......fear and capitulation is still to play out!

by Adam2 | 28th Feb 23, 10:17am 1677532656

I don't know if it is just me but I am noticing a very low level of new houses coming onto the market this last week. Anyone else notice that?

Also, as an aside, I have heard from a RA that many vendors and buyers are using *2017* CV's as the price guide. Apparently the application of this is pretty uneven but it is driving quite a few of the processes. This makes sense to me as I am seeing quite a few houses in the Auckland market sell on or below the 2017 CV.