There was a sharp decline in residential auction activity last week, as winter made its presence felt in the auction rooms.
Interest.co.nz monitored the auctions of 296 residential properties around the country last week (4-10 May), down sharply from 437 the previous week.
It was the first time fewer than 300 properties have been offered at the auctions we monitor since mid-January, when the market was just starting to wake up after its Christmas/New Year siesta.
However while there was a drop in the number of properties auctioned last week, there was a slight improvement in the sales rate, with 97 properties selling under the hammer, giving an overall sales rate of 33%.
That was up from 31% the previous week and 29% the week before that, and was at the upper end of the 28-33% range that has prevailed for the last couple of months.
However at this stage, it's too early to call that an improving trend and we'll need a few more weeks to see where things are likely to settle over winter.
The table below shows the regional trends, and details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices and rating valuations of the properties that sold, are available on our Residential Auction Results page.
The comment stream on this story is now closed.
•You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, register here (it's free) and when approved you can select any of our free email newsletters.
82 Comments
Reality hits. Are we entertained yet....?
Dont let anyone tell you that HP dont increase or maintain over the duration against average inflation rate during stagflation/hyperinflation
Says the one who can't distinguish a roll filled with hot sausage meat and one that pays a salary.....
Well you took the bait/sausage roll didn't you
Yep is it affecting you now....that was over two weeks ago 🥺👍
Why would you be "entertained" ? Please explain.
Yvil, a significant number of people have been left in a state of hopelessness at the absurd level of house prices in this country. Many are angry, as well as upset. Ever increasing house prices have been welcomed and celebrated by so many . Yet it’s also depressing for so many. I can totally understand why some are welcoming, even celebrating, the slump.
No doubt many people are frustrated about the high cost of houses. How does revelling in others people misfortune make their situation better ? It does not, being angry and upset leads to staying stuck in one's position. Revelling in other's misfortune, might provide some superficial relief such as "I'm not the only one hurting, they are too, but envy, bitterness and jealousy prevents one from moving on and upwards to a better life. It's the same after a divorce or separation.
Misfortune? How many sales or potential sales are by people experiencing misfortune ? We don’t know. Unfortunately there will be some.
how many hundreds of thousands of people are under housing distress or are depressed / disillusioned at not being able to buy a home?
Wouldn’t you agree that ever increasing house prices and all the hype about that was celebrated, in a way effectively it was entertainment? Did you ever think about people who weren’t on that ‘rising tide’?
you see, it works both ways
You don't get it: it's HIS misfortune, so how dare you not empathise with that?
Whose misfortune ???
You completely missed my post HM. My post was about people's mindset, not about housing. It's very difficult to achieve what we want, when we're angry, bitter, upset and revelling in other's misfortune, which is a typical sign that we are not over our own misery.
Bullshit
You consistently demonstrate a complete lack of basic human empathy
That's true, I do not come on a financial website to make friends with people I don't know, I read a financial website to make money.
and make weather predictions
which is strange as you are at least smart enough to know not to make financial predictions....
It would be fascinating and perhaps useful to know what % of adult NZ'ers actually want house prices to be lower and genuinely more affordable versus those who don't.
If I was to guess, I would say 70% would want this, 18% would want to see increases, and 12% don't care or don't have a strong enough view either way.
Of the 70%, a good chunk would be homeowners, including some ma and pa investors. These folk would be worried about their children's future, general inequality, and the burden on households to have such a massive debt/cost for a roof over ones head.
Imagine if a comprehensive nationwide survey was done and the politicians acted accordingly on the results of that. Of course, currently the political power is still skewed in the 18%'s favor, and decision makers who are proponents of the wealth effect etc.
Rubbish. So if people just think positive then they will suddenly, miraculously be able to afford to buy a house? What a load of codswollop. Totally trivialises the extent of the issue.
Of course there is a ‘grain’ of truth to it. But only a grain.
I used to think exactly the same 25 years ago, my thinking came from my well-meaning parents. Then I read some books about the mind and how it works. It helped me overcome fear and take action. I would never be where I am today, if I didn't change my thinking first. It would be great (for yourself) if you could maybe just entertain the idea, that I may have a point,
House mouse outta put his money where his big mouth is, write articles for interest.co, even just one article will do to tell us whats what.
He doesnt have the guts to be analysed by us though
I'm still waiting for your explanation from yesterday Yvil.
You disappeared? But now you're here..
Reference to a mocking movie quote during the Gladiator movie. Leverage is bidirectional, leverage exploiters about to find out just how fun it is on the way down.
So you revel in Schadenfreude!
Watching smug ponzi pushers get wrecked along with the crooks who engineered phony asset pumping.
Guilty as charged with no apology.
Thanks for the honesty!
Spruikers don't care about falling prices as they never sell pooperty......
Who is losing money? A small cohort are underwater from 2021 but 98% are still laughing all the way to the bank.
Genuine questions, where are the distressed sales? Maybe <1%
Indeed Te Kooti, but so many commenters are so desperate to see others lose money!
I'm hoping for a short sharp dip but I'm not really seeing it. I think many are sitting on the sidelines waiting for the same, or maybe the first cut. I'm happy to be proved wrong, so where is the evidence?
Another big dairy farm roll-up has just gone tits-up, there must be some houses up for collateral somewhere that are going to get flushed to the bears waiting on the riverbank? I have noticed a steady increase on the larger houses arounf Speargrass Flats on the market, I reckon you would get hit under asking there now.
So nice to have a conversation with an adult.
I do think things are going to get worse in NZ in the second half of the year. I see unemployment rising significantly and several businesses struggling and some closing down. That could spill over onto RE. There's also the risk of a bigger, more global shock striking.
Maybe look at yourself in the mirror before questioning how much of an ‘adult’ other people are….
Perhaps, but vapour expectation loss will be everyone. Que all the unsold houses that are greater and greater in number everyday. Its not that people don't want to buy, they surely do. They simply cannot afford the ponzi expectation. The real question is how far back is the reality of today's market....?
No, the question was, why do you find people hurting, including FHB's, "fun" ? (in your words)
Hurt... get a grip. Being run over or getting a bottle in the face will hurt. All financial leverage based problems are self inflicted.
OK I get it, you will not answer the question; why you enjoy others, including FHB's, suffer.
You know desperate FHB’s aren’t the demographic anyone is referring to, most were thrown into the hunger games believing this was their last chance, thanks to debt junkies.
You’re being deliberately stupid.
Exactly
Nah, just seeing the debt farmers relying on exploiting average kiwis get some of their just deserts. Especially after years of crap talking how great they are for doing so. Song lyric time.
"Come to think about it, his name was... it was you"
Come now above averageman, you sold a handful of rentals at the peak to another debt farmer as you like to call them, and now waiting on the sidelines to swoop. That innocent look of yours is quite the look
Lies of the vested right there. Have not sold a property for over twenty five years.
Thats BS as I distinctly recall Yvil making the comment that were not an "average man", that you'd had 4 or 5 homes you sold
Tell the truth
Actually you are right. Just checked the dates. Last house sold was 24 years three months ago.
Happy now...?
No
Right, so you think investors are hurting from higher interest rates but FHB's are not? Then you're a fool !
The entertainment just beginning.
Tough economic times have hit, with much hardship and uncertainty.
Here in Auckland there are visible signs of a slowdown everywhere - including shops, restaurants, car sales and property.
Nationally, we note a sharp rise in KiwiSaver withdrawals for financial hardship reasons - both telling and sad.
But, as always, some will find a silver lining…..
TTP
Have you relocated from Palmy?
He may be enjoying a stay at the govts comfort hotel in paremoremo, and someone smuggled in a phone.
Now RBNZ have a single mandate target - INFLATION, we are all on data watch ....... 3.4% Will likely be Nov 24 for cuts if the prints keep falling.....
How much damage will be done by them? And I cannot see even a 1% cut turning much around, it will simply take the foot off the throat.
Summed it up nicely.
Any cuts will be far too little, far too late.
To make any meaningful difference to the economy, the OCR needs to drop 1.5-2%. Even if it does - and that’s highly questionable given inflation is proving sticky - that will be over a 6-12 month period. Unless things get really bad - in which case the cuts will need to be deeper and faster, yet it will be even harder to resuscitate the ‘critically ill patient’ that would be the NZ economy…
DGM? Sure. But you can go and read Liam D or OneWoof if you want fake optimism and your confirmation bias affirmed.
Or one can read the comments section of a housing related article on Interest for "fake pessimism of one's confirmation bias" LOL.
Some, yes.
Would you put me in that category?
hey, I predicted a tiny increase in prices this year
Not anymore, you have become a lot more balanced over time.
Wow wow wow, IT GUY that 3.4 percent is a HUGE turnaround in your next inflation forecast.
0 to 3 is the next step but no guarantee as trump will likely cause inflation and wars
I did have to point out though that the last 6 months totalled 1.1 percent
"Tough economic times have hit, with much hardship and uncertainty."
It's all good though, because hardship keeps people like Averageman entertained.
by AveragemanHide All | 13th May 24, 11:47am
Reality hits. Are we entertained yet....?
"Hide all" - LOL! All and sundry weren't supposed to see that aye Evil? .
Doesn't make sense... thats par
Welcome back TTP ....you learned, insightful rhetoric has been sorely missed ..here's one about Auckland for ya ...214 up for auction and only 18 properties or 8.4% sold for their CV or above ....and that won't include any recent renovations etc
.
Yvil..... in Auckland 65 properties sold (out of 214 properties) so that is 214 x 30% = 64.2 properties (rounded to 65) - so out of those 65 properties 28% sold at CV of above ……..so 65 @ 28% = 18.2 (rounded to 18)
So out of 214 going to Auction (65 sold) only 18 properties sold at CV or over ….or 8.4%
Those who followed the word of the wise and waited, saved while taking advantage of HFL deposit rates will certainly see a silver lining in this downturn. The other silver lining is venders can still exit if they price realistically. It certainly is sad that there are job losses and financial carnage in progress. This is the downside of living for extended periods beyond our means. I understand this downturn is not expected to peak until around Christmas.
As predicted ages ago, there certainly is no hurry to buy.
Well put. Let’s be positive! There is exit potential if people aren’t too greedy. Yet many people are too greedy (and/or deluded).
Agreed. People are waking up from their debt fueled bender and realising that they are on the cusp of the fear and capitulation phases of the classic housing bubble. Gonna be fun.
Popcorn
capitulation cannot be modelled well, RBNZ carries some execution risk if this is their goal....
Yes. I think we are in the final ‘panic’ phase, which was put on ice on the flimsy premise that the new government would turn things around.
Averageman, why do you find capitulation and hardship "fun"
Vapour equity greed farmers will be nashing their teeth. All others tax paying kiwis struggling to get a home, or a better home, will be better off. Tis a good thing right....?
Yes I do think it's a good thing, as per my post of yesterday:
by Yvil | 12th May 24, 4:32pm
I do think that time has come to introduce a broad based capital gains tax in NZ, that encompasses all properties, including the private home because the tax take from the capital gains will allow to reduce income tax for working people.
But you didn't answer my question:
Averageman, why do you find capitulation and hardship "fun"
Having sat on a few trading floors through a good number of crashes.... 2002 dot com, GFC and FX Markets with QE.....
I have seen a lot of capitulation.... Houses are different and much more personal.
One man losing a home is a tragedy. 5,000 is a statistic.
Many more NZers will grieve the loss of retirement funds vs actual homes.....
Houses are different and much more personal.
Thoughout history, many items have been objects of speculation. E.g
1) tulips
2) precious metals
3) oil
4) industrial metals
5) agricultural commodities
6) art
7) beanie babies
8) government bonds
9) shares
10) real estate - commercial, residential, land
Shelter is a human necessity. When residential real estate becomes an item of speculation, then the people who need shelter (either via ownership or in the rental market) can become potential collateral damage. History has shown this in many cases.
Remember,
1) residential real estate is the largest asset class in NZ. At the peak it was valued at $1.76 trillion.
2) lending on residential real estate is the largest loan exposure for the banking sector in NZ.
3) residential real estate is the largest source & store of wealth for most households in NZ.
"Vapour equity greed farmers will be nashing their teeth"
Like the poor FHB's who bought 2020 -2022, what do you have against them?
Can you imagine how bad things will get here if Aussie turns negative........
A third of the 5 properties sold in Papakura went above CV. 20% of the 16 sold in Central suburbs went above CV.
The errors in this data hurt my brain and frankly, I wouldn't give this data much credence for financial decision making.
A quick look shows two of the sold Papakura properties did not have a sale price disclosed so they could not be included in the calculation, i.e. only one of the three with a declared price sold above CV. Likely the same story for Central.
Yes, sometimes a selling price can't be matched with the RV, so those results are removed from the percentage calculation.
REINZ data out tomorrow, I wonder if, for the first time this year, prices (not HPI) will drop, as I expect them to?
I see you shiver with anticipation.....
Oh wow I better turn my laptop cam off, then.
But maybe the rain
Is really to blame
So I'll remove the cause
But not the symptom
Yvil - where did your comment go about my Auction figures for Auckland go ? - had the answer all prepared ....
EDIT: now posted above for you to do your due diligence on
It vaporised, just like the housing values, lol.
Goodonya mate .....carry on living in ya bubble !
PS I see your original post went offline - so my calcs are correct ? - deafening silence .....says it all.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.