A big drop in auction activity has occurred with the number of properties on offer at its lowest level in 10 months.
Interest.co.nz monitored the auctions of 255 residential properties around the country over the week of 1-7 June, down from 339 the previous week, a drop of 25%.
That put the number of properties offered at the auctions monitored by interest.co.nz at its lowest level since August last year, apart form the Christmas/New Year break.
However while auction numbers were down the sales rate remained unchanged, with 82 properties selling under the hammer, giving an overall sales rate of 32%.
That's about where it has been for the last six weeks.
The fact that it was a short week because of the King's Birthday holiday may have been a factor in the drop in auction numbers, with some vendors and agents likely wanting to avoid an auction in a short week. So numbers may perk up again next week, but we'll have to wait and see.
Either way, the market is squarely in winter mode.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices of those that sold, can be found on our Residential Auction Results page.
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49 Comments
Despite repricing that's been in progress since early 22, the glut of expensive homes endures and the well informed will know what that means.
With Brightline, July 01 onwards will be especially interesting. No doubt there is a growing number of increasingly anxious individuals wanting to bank equity whilst it still exists. When Brightline was extended, it contributed to the listings drought adding to the froth. It's easy to assume that it's reversal could cause unintended consequences given current market conditions.
Very good point. The main issue with investors is the interest rate is much to high for investment properties to make sense.
I still think that forcing the investment market to build new is the way to go.
The main issue for some investors is that the interest rate is much too high.
Investors are still borrowing over a billion dollars per month for new loans.
I agree that building new is the way to go, but the cramped and poorly designed town houses on 100m2 of land are already becoming a blot on the landscape.
No major changes for several months now.
Exactly. This buyers market remains in the doldrums. A sustainable floor will come eventually though. In the meantime, those who temporarily put their lives on hold armed with bigger deposits, will be encouraged with what's happening.
I think you are missing the insinuation. A flat market is a floor.
I suppose it could be a ledge in a decline but those do not normally last 6 months and more.
I think it was more an episode of Vendor denial than a floor. If sales volumes aren't your thing, it's easy to get the two confused. Recent data from Barfoot's indicated Vendors are more willing to meet the retreating market. Yet in another report from TA was an admission FHB's are pulling back due to widening job insecurity.
At the moment it points one way↘️.
Retired-Poppy
You go on like a smug broken record.
You have been telling potential FHB to put their lives on hold since 2017. I recall many debates with you over the pre-covid period 2018 to 2019 when you screamed to hold back and put their money in term deposits. Unfortunately for those that listened to you saw term deposits to go under 2% while house prices accelerated away and prices today are still 20% plus above those levels despite the falls since 2021. You need to acknowledge that you were wrong and apologize to to those who followed your advice.
I have seen you call your self "wise" because of your calls since the market peak. Anybody even with only a little sense of nous could see in 2021 that house prices were unsustainable and that government action with removal of interest deductability and increase in brightline test, RBNZ with LVR changes and increases in OCR and consequently mortgage rates would lead to a fall - it wasn't rocket science and obvious to all so stop acting like a financial genius. Anybody in their late fifties with a mortgage free home and can only talk of term deposits is hardly "barely average."
Now, admit your advice back in 2018-19 was wrong and aplogise to those you misled . . . but I'm not holding my breath :)
Cheers
Looks like backups arrived. Printer8, did you predict the COVID pandemic and the tide of cheap money? I certainly didn't and many predictions based on good intentions went right out the window - INCLUDING MINE. The market was already frothy in 2017/18 - can you deny that? I'm not holding my breath either - LOL!
Your little sideshow aside, I think what really matters is what's happening right now.
Retired-Poppy
You are in denial - over that period 2017-2019 property prices increased and irrespective of COVID, they are still over 20% higher.
You need to apologise to those you misled over 2017, 18 and 19; house prices are still over 20% plus higher.
Your call was wrong and rather than even acknowledge it (and certainly not apologise) at the time your reaction was to simply disappear entirely from this site for over two years.
Don’t put yourself up as the champion who is wise - and. never wrong.
Printer8, I think it is in fact you that is in denial. Looking in the rear vision mirror will not insulate you from what's happening in real time. Of course my call/prediction was wrong and house prices rose over the period mentioned and are now declining. All contributors are entitled to air opinions, make predictions and argue them out on this forum. I offer no apology for being absent when I chose to be heavily involved in the COVID response itself. These were indeed interesting times.
I hope this puts your mind at rest.
I have only been on interest for a year. I calculate I'd be down 150k in my net worth if I followed Retired Poppys advice. His latest prediction that we are going back to 2015 prices by 2026 (60% fall nominal) will also be ignored.
Baptist, I posted "I wouldn't be surprised come end of 2025 prices have returned to where they were 10 years earlier". It was not a prediction. Anyway, with the world the way it is - nothing can be off the table.
Rest easy. I don't relish the thought of living rent free in your head - trust me.
Must have been one of your edited comments...
Well, this is the second time you've mentioned it and the second time I've clarified it. It needn't rattle you....
I'm disappointed, the 2 new posts that were added since earlier were just Retired-Poppy amending his posts again and again
Maybe he should copy and paste comments from last week/last month
Someone's a little upset today....
If you're following my posts so closely, perhaps you could refresh your screen every 30 minutes instead of every second?
Edited.
Retired-Poppy, It would be helpful if (like above) you indicated when you edit a post - and number each successive edit because often your posts are edited multiple times. It becomes very difficult to keep up with all your edits.
Better still, say what you want to say once: then leave it alone!
TTP
What? giving up on your other handle "Mypointis" so soon? You of all people should know there are bigger crimes than editing posts.
This morning It's more about the message than the individual - you your ilk know it :)
What? giving up on your other handle "Mypointis" so soon? You of all people should know there are bigger crimes than editing posts.
Is that you, Donald?
TTP
Pot kettle etc.
Not edited.
Nothing better to do other than refresh an article to read the same comments that the same people, including yourself, keep writing on the same articles week in, week out???
First world problem? He's bored.
I have to admit, your comments do get a bit tiring. Maybe go and help the business economy by going out and having a coffee and smashed avo on toast for breakfast instead.
TTP, seriously? 😆🤣
Admission of your guilt would be better placed.
Classic NPD. (Narcissistic Personality Disorder)
TTP
Take your meds then...
I have noticed certain posters (not necessarily RP) have a tendency to re-edit their comments hours after they're made.
One time I went into an article that was days old, saw it had new comments, only to find it was just some existing comments that were edited that very day. So they're going into days old "stale" articles, and editing their comments. Each to their own I guess, but unsure why one would feel the need to do it.
would be great to see such analysis of non-auction sales too.
Much harder to get data unless agents willing to verbally share as prices have to be reported x days after settlement not sale I believe? someone here used to do this for part of the Hutt, was amazing he also did rentals in same area...
I have good relationships with agents and they email me prices in their area if I ask, its not moving that fast... in fact round here sales in 2mil plus are very slow
watching this one
https://www.trademe.co.nz/a/property/residential/sale/listing/457546016…
I assume you would be in favour of sales with stamp duty to foreigners above 2 mil. If as you say they are glacially slow then no harm done?
No. Nobody wants to sell the country out to foreigners from under us. Except the real estate industry that only care about commissions. The only good thing that NZF has achieved.
IT GUY is building on his newly formed 2H lot so is talking to agents in his area to get the good oil on top dollar. As a money man he wont care who fronts up.
Anyway well heeled foreigners make better neighbours than kiwis who were born into riches. Nouveau rich and old money dont get along
I am against foreign ownership, Always have been. and all those names just sound chinese
Retired-Poppy has 41 percent of the 17 comments today. You really could just string them all together to make a hugely read interest.co article. Then we will have the freedom to denigrate and rubbish the remarks as we see fit without being berated in return
RP has a higher percentage than houses selling over RV ATM.
RP is a hard-core keyboard anarchist hoping he can talk prices down to a zero percent overs ratio. Good luck to him, his theme song should be ....
What if a property was just land at the time of the CV? It can only sell for more if built on. Surely it will be claimed as sold above CV, inflating the numbers.
Six sold in all of the South Island. Gosh that's pathetic.
Barefoot lacks market share in the South Island. It's base market is Auckland
Remarkably stable - hardly the doom spiral some on here are touting.
A smattering of your passive-aggressive responses this morning R-P. You really are on form
He's bored
Someone's a little upset today....
It needn't rattle you....
Rest easy. I don't relish the thought of living rent free in your head - trust me.
you your ilk know it :)
Take your meds then...
That last comment should be banned
So glad I am here to join with everyone
You must be insane, "we're all nuts in here" 😉
Edit
Absolutely not! I am appreciate every comment here.
The house should be for people live in but a financial element to make money. A country and their people getting rich should be depend on production and technology but comcrement, the land worth some money it is because it is limited resources which government and central bank can’t print.
NZ’ house price compare with kiwi earning is the one the most expensive places to live here, that is why our young people escape to OZ, if this trend carry on, then NZ economy will die so does kiwi culture. The large percentage immigrants is pretty bad as they will change kiwi culture and put democracy in danger, more Chineses, more other religions will destroy the country.
Am I racism? Off course! I was born in China, therefore I knew them 10 time better than you.
The great news is that home prices are well on their way back to 2015 prices again.
Many who have waited and saved their earnings will be dancing and rejoicing in the streets come 2026/2027!
A floor maybe seen where rental earnings (8 to 10%) will support an average home price that is -60% lower than the PEAK OF GREED, that was seen in 2021.
Wait or just bid 25 - 35% lower than current asking prices, or walk away and say I maybe back in 2027.
The forward risk of major negative equity is still high on current pricing and best avoided.
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