The number of properties being auctioned remained high in the last week of March but fewer of them were sold under the hammer.
Interest.co.nz monitored the auctions of 527 residential properties last week (23-29 March), down from 568 the previous week but still a high number, especially considering it was a short week that included Good Friday.
The biggest change was a drop in the sales rate with 147 properties selling under the hammer, giving an overall sales rate of 28%, after it had been hovering around a third for the previous seven weeks.
March is usually the busiest month of the year for the residential property market and auction activity this year was well up compared to March last year.
Over the four weeks of 2-29 March 2024 interest.co.nz monitored the auctions of 2157 properties, more than double the 1048 properties auctioned over the equivalent week (4-31 March) of last year.
However while auction activity doubled, the sales rate was practically unmoved at a third, with 32% of auctioned properties selling under the hammer in March this year compared with 33% in March 2023.
So while the auction rooms have been busier, the sales rate has not changed since last year when the property market was in the midst of a significant slump.
The table below shows the latest district-by-district results for all of the auctions monitored by interest.co.nz last week.
Details of the individual properties, including the prices achieved for those that sold, are available on our Residential Auction Results page.
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59 Comments
Ponzi slump. At least if your cake slumps you can put custard on it to help scoff it. Not sure that custard will help the ticket clippers.
Not sure about slump- definitely lower volumes but a couple of places we’ve had our eye on - circa 2.5m- went for v good money and 2 were multi offer situations. Seems to be a more normalised market with more choice for buyers, and sellers of lesser quality homes needing to be realistic.
Things are shaping up to potentially be a long term Ireland style property slump. 10+ years of no capital gains
Haha you’re dreaming. Completely different fundamentals
Like what?
The government's just trying another measure to help property speculators. Demand subsidies and a tax free ride off productive Kiwis. So much Entitlement Mentality.
Like every kiwi is born a property expert. Thats what.
I've assumed this to be the case for some time now.
Similar to the Irish experience, I don't think modest cuts to interest rates will stop the decline.
Averageman, lots of tenants getting displaced at the moment due to houses being sold. As mentioned rented a house in 48 hours and at least half mentioned that their landlords are selling. There is a counter argument for the Ponzi Slump.
"lots of tenants getting displaced at the moment due to houses being sold"
Decrease in supply in the long term rental market
Increase in supply in the house ownership market
Resulting in rising rental yields.
Decreasing affordability in the long term rental market - likely more people joining social housing wait lists, more requiring accommodation supplements to rent in the private rental market.
Increasing affordability in the house ownership market
And as you and so many overlook, supply increases from both new builds, ex air bnb, empty homes (2 in our street alone) and from ex rentals coming to market.
A few displaced renters will become buyers, most do not.
Increase in properties available and no increase in buyers who can afford = lower prices until they can.
So sorry....no counter to property slump at all!
Sounds like a good time for you to triple down and buy more safeashouses. Are you, or if not, why not...?
@averageman - I did hence my old house was for rent
Mid March -beginning of April marks the day when tenants can be given their 90 day notice to move out, so the landlord can put the house on the market on 1 July. I suspect we aint seen nothing yet when it comes to homeless tenants. And for sale listings.
The old unintended consequences trick eh...
"Averageman, lots of tenants getting displaced at the moment due to houses being sold."
Averageman, lots of tenants getting displaced at the moment due to houses being put up for sale but not sold.
Fixed that for you
That would make a good listing headline: "who's for trifle!"
More listings piling up... buyers spoilt for choice... No need to be quick.
Yes indeed, for FHB's - there need be no hurry to buy. It's lining up to be an opportunity for the patient saver to make lowball offers with increasing chances of acceptance.
Sellers be quick and drop prices,
Ive been tentatively looking. Every agent tells me Im going to be rich (at least 200k richer) in 2 years when the rail link is operational. Looking at lock and leaves in central ak, great sales pitch if that was my goal, its not, so I tell them, its like im speaking swahili.
Too many years of easy pitching with "it's a great investment."
Oldest saying in the book... "two ears, one mouth." None of them have had to actually SELL anything, and so now they are unable to do even the basics.
This will push NZ out of a technical recession again.
Exactly how does selling houses to one another increase GDP?
Quite simple really. At the end of each housing transaction chain is an exiter. They take their newly minted NZD and leave NZ, spending their hard earned dollars in "cheaper" countries. The tourism workers of those countries earn enough money to purchase a working visa back to NZ, and they arrive as new weatherboard consumers with ~$10k to spend, raising GDP.
Accurate analysis
Real Estate Agent commissions and TradeMe ads lol
How? Please explain.
So Auckland is now firmly in the 20's.. pressure building on prices.. rates going up will add more pressure in the short term
Wow, auction is so NOT the way to sell a typical house now, how come 527 decided to try last week? I guess everyone wants to be part of the 28% be interesting to see how many only had a single bidder
And do you know that non-auction sales are doing better?
I Guess you can just subtract the ones sold at auction over last 4 weeks from the monthly sales numbers....... Probably a much higher number selling by private treaty but a lot lower % of the total listing base........ ie 28% may well be the best chance you have ie There were 5693 sales nationwide in February
72% of vendors paid upfront fees to Spruiking Agents for disillusionment. Sounds like fun - NOT!
With a limited and cautionary pool of buyers being swamped for choice, over time, some vendors are bound to become increasingly desperate and become more compelled to accept lower offers. It's only a matter of time now.
But RP .... it creates urgency !
For a growing number - it sure will. It's not rocket science that given how shite things are getting out there, the growing number of unsold homes will evolve into lower pricing. The full effect of interest rate settings today won't be known for probably another year. It's still early days for this to fully play out. Some out there are doing it tough. What will the economic landscape look like in a year?
Highest supply in 9 years but not the highest demand............. I think loses will have crystallised by next year
Although the urgency is more with sellers than buyers these days
Horncastle Senior put his fancy Fendalton pad on the market 5 months ago. Got a couple of offers "close to asking" but turned them down last year. Then this month they publicly declared the asking price was $9.75M. Place sold last week for $8M. Thats an 18% haircut. Anyone would think they are fleeing the country or something lol.
There was a whole article about this place could make house price history, lol! https://www.odt.co.nz/star-news/star-christchurch/fendalton-stunner-could-make-house-price-history
Some clearly REA became way too excited.
HAHAHAH @
Ellis said Christchurch was traditionally a "hibernation city" and everyone seemed to have been holding off until Spring.
“I think people are realising the market has bottomed out and starting to realise it might be time to move again and there’s been quite a pickup in listings.”
I went to a local auction today funnily enough. I'm not a regular as a rule. There were more agents standing around the place than there was buyers by about 3 to 1. They had 8 sold 2 with 2 in discussions when I left.
How many bidders on the 2 that sold?
Out of the 28% sold 66% didn’t make Rating value. The ones who managed to sell will be very happy some would have taken low ball offers but better to get off titanic with a few wounds that go down with the ship.
the days of 14% over CV for a knock down rotting hovel on 800 sq m in Auckland...... (4k per sq m ) are long gone, some of us got the top, spruikers where high fiving at the time..... Agent delivered bottles of champs for the party afterwards... was a 60k ish commision....... good times
All those 9% (34% of 28%) that sold above CV will have been significantly improved since original valuation done. Everything unimproved is selling well below CV in Auckland, if at all.
TM listings just broke 45,000. Still climbing.
Hey TTP spin us some BS to support this market ?
The Comb is waving the white flag , you are our only hope!
TTP to ChatGPT:
"generate a positive comment in a depressed housing market" <Enter>
ChatGPT to TPP: Brace for impact
Wow. It really has ramped up. I'm trying to remember when the number of listings rose above the max count they display (~32,000)?
About two years ago IIRC, I remember comments on interest about it. Now there are 34,000 in the NI alone on TM.
FWIW - it only takes a minute to figure out how many for sale. It shows a total when you search by region. Skip through them all and tally them up.
Thanks. Two years ago sounds about right.
Reminds me that I actually put in a request for API access around that time with no response. Might have to submit a new request...
Would be fairly interesting to set up a cron to pull and record each day. Then put a report together. Would be fun if I had the time.
32 out of 407 houses in Auckland sold over CV.
Walked past the Takapuna Harcourts office this morning.
There was a guy doing a slideshow presentation for a bunch of agents, heading like "share listings" "Do minimums in a tough market"
Lots of sad/concerned faces.
Top agents already done the neuro linguistc courses in how to drive vendors into accepting reality..... or not....
Caledonia’s $9b bet on Zillow hits an activist short seller wall
The hedge fund backed by some of Sydney’s wealthiest families says the real estate portal’s share price could triple by next year. Others think it will halve.
Place your bets please.......
ASX drops 1.3pc as property tumbles; Westgold plunges 15pc
Sooner or later all the houses in Auckland will be worth more than $2M.
https://www.interest.co.nz/public-policy/127104/nz-first-leader-winston…
The government needs tons of money and if they could, they would sell the citizens.
House prices have lost all proportion, a price drop?! hahaha...
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