Auction room activity last week was at its lowest level so far this year, apart from the January summer holiday period.
Interest.co.nz monitored the auctions of just 236 properties last week, down from 282 the previous week and 301 the week before that.
By comparison auction activity peaked at more than 600 a week in late summer.
Last week's slump in activity was probably due to a combination of it being mid-winter, when the market is traditionally at it's slowest, and the fact that it was a short week due to the Matariki holiday.
However although fewer properties were on offer, the sales rate remained within its recent range with exactly a third of the properties offered selling under the hammer.
The sales rate has remained within a narrow range of 29% to 33% for the last 11 weeks.
However the more significant figure may be the annual comparison of auction activity.
Over the four weeks from 1-28 of June this year, interest.co.nz monitored 1075 residential property auctions, with 342 of those selling under the hammer, giving an overall sales rate of 32%.
But in the equivalent period of last year (3-30 June 2023), there were just 715 properties auctioned, of which 318 sold under the hammer, giving an overall sales rate of 44%.
So there's currently more auction activity compared to last year, but sales are harder to achieve, which likely means more downward pressure on prices.
The chart below shows last week's district-by-district auction results.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices of those that sold under the hammer, are available on our Residential Auction Results page.
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65 Comments
Some auction price were 40% cut off from CV.
people... where getting 19% over CV in late 21 for dumps.... if developable.
Do you have some examples by chance?
Auckland, Auckland City, 4A Harbour St, St Mary's Bay , sold 790,000, cv 2575,000 -69.32%
58 Kiripaka Road, Tikipunga, Whangarei，sold 290,000,cv560,000 -48.21% off
52 Garus Avenue, Mangere East, sold 712,000 cv 1025,000, -30.53%
19 City View Terrace, Birkenhead Sold 860,000 cv1350,000 -36.29
Auckland, North Shore City, 33 John Street, Ponsonby ,sold 1600,000cv 2350,000 -31.91%
A couple of points on those properties, the Bayleys listing for the St Marys Bay property says it's selling 'as is' and is ready for transformation. The Birkenhead and Ponsonby properties are in "original condition" so would require a lot of work. 58 Kiripaka Road doesn't look to exist as such, from what I found it's a 1 bedroom and it's number 1/58, could be wrong though. Appreciate you taking the time to provide the links though, it's hard to find property sales info with all the TBCs around.
Edited to add: the Birkenhead property has a 809m2 section so could have development potential perhaps?
Thank you for your detailed every property.
i agree with you those are in some special conditions however, such big price cut never happened before especially in 2021, even a piece of land would sold unrealistic price. It is hardly under the cv whatever how bad the property condition was.
it is not because those properties in bad conditions but it is vendors changed their expectation. There are always some bad conditions or sale it as, but it never happened before so many sales cut off over 30%, 40%, even 60% as last week. If you counted there are more quarter sold properties cut near 30% or over.
I hear ya Niuniu and agree that stupid prices were paid in 2021 and buying under RV was likely rare at that time. You may well be right that vendors have changed their expectations, I hope so, time and more data will tell.
We're interested in the Auckland market which is why I dug a bit deeper. A lot, if not all, Auckland RVs I've seen seem ridiculous to me (although I'm far from a property expert) and a 30% drop or more would be welcomed by many including me. Any real time info from those attending auctions is valuable as as I mentioned above looking for sale prices online often means seeing TBC unless the property achieved a good price. I'm interested in any other data you post and thanks for sharing it.
58 Kiripaka is on homes as 3 bedroom house from the 1930s with a 560K CV.. what sold was a one bedroom unit, 1/58 Kiripaka, with a CV of $395k. So that one isn't valid.
4A Harbour City. if you looked at the ad,
Selling "as is" this townhouse is ready for transformation. This property delivers the incomparable add-value opportunity you have been waiting for. Ignore the CV and online value estimates.
Bring your vision, your architect, your builder. Reimagine this space. Create a residence that is uniquely yours. Create your own masterpiece.
there is a massive water stain at the bottom of the stairs in the photos and plenty of other bits that look soggier than grandmas trifle. So yeah, not a surprise that a computer generated CV is not relevant when you probably need to gut it/demo and rebuild, and its on the side of steep hill.
Garus ave, again, look at the aerial photos, I doubt all those extra extensions are permitted, so no doubt the first thing you need to do is to demolish those, probably why there are no photos of whatever is hiding under that currugated iron.
33 John Street well, check the photos.. https://www.barfoot.co.nz/property/residential/auckland-city/ponsonby/h…. Thats not a house, thats a compost heap.
Sorry, your cherries seem to be a bit rotten.
Agree regarding 4a Harbour City, had a look at the sales history (there is none) so likely someone's first home from 1983 when it was built.
Given the state of the flood damage, maybe they had a cash settlement from their insurance company for the cost of repair but would rather sell the property as is and move into something ready to go.
Firstly, it's not Harbour City, it's 4A Harbour St, St Mary's Bay.
I know this property well, the elderly vendor suffers from dementia and he had to be moved to an aged care facility.
I have personally been through the property. It is in a terrible condition one of the worst I have seen. There are also multiple non-compliances that need addressing. Still, it's in a top location, so you'd think you can throw $1 Mill at it and have a nice townhouse in a top suburb. But wait: there's...less. it's on a cross lease with the other 2 units, sooo you need approval from your hopefully very friendly neighbours, to do any renos to your townhouse. Good luck to the buyer!
Another reason why they should have had a money (and headache) saving subscription to interest.co.nz...
The smartest and brightest are leaving.
The smartest and brightest are leaving.
Therefore, Chairman Moa, we can only assume that you're staying. ✅ 😉
TTP 🤭
We can all rest easy knowing you will be here to guide us through this TTP, until the bitter end.
Right on, IT GUY, I'm here for the long-haul - to partake in the ups and downs of the housing cycle. Keep reading my posts here and remain enlightened.
But try Retired-Poppy if you want someone who vanishes - without warning - when things get too hot.
Poppy is infamous for his scarpering - and leaving a mess behind him. As unprincipled and scurrilous as they come.
TTP
What does this 7 year old article have to do with this thread ?
LOL - something keeping you awake at night TTP? If I take breaks from this forum from time to time, it's because there are sometimes more important things in life than online forums. The last long break was because I got caught up in the COVID response. Unlike Property Brokers, I was an essential public service and I'm guilt free!
To be correct and clear, Retired-Poppy took a lengthy break from here (around Covid time) following his emphatic predictions that the housing market was about to crash - but, instead, it soared. (If it hadn't been such a crisis for Retired-Poppy, it would have been hilarious.)
Many here will recall that his break lasted not weeks, not months....... but for several years.
That's how long it took him to cope with all the humiliation and embarrassment that he brought upon himself.
TTP
You obviously really missed me....Awwwwww
Recently the Retired-Poppy was chirping that house prices only remained level with inflation during the 1970s. Until he realised that inflation rose some 322 percent over the decade. He fled but not before his mouth hit the floor
HUH? Your post makes no sense at all. How did you derive that from this?
https://www.greaterauckland.org.nz/2016/07/11/remember-the-last-time-ho…
Speaking of assassination of ones own character - LOL!
Your post makes no sense
Ditto. I dont expect you to understand what "real house price index" means
Dearest TTP,
I saw the light at the end of the tunnel and left in 2011, but I kept the other lights on for you dear.
Love,
Your chairman!
The Chairman ! .....had a very "interesting" conversation with one of TTP's cohorts in a carpark, early January this year .....he was ABSOLUTELY CONVINCED that interest rates would be coming down by May (at the very latest ! ) and there would at least another 3 - 4 rate cuts for the rest of the year !
I just smiled and walked away ....no point in discussing anything that could impede his "true wisdom" on the matter.
I have always said that ignorance and arrogance would be the downfall of the residential property market....coupled with the fact most of them couldn't lie straight in bed !!
I think the person who predicted interest rates "would be coming down by May" is very astute, and he will certainly be correct. What is left for you to figure out CH, is which year he was talking about, which he wisely didn't mention.
You and I know full well he was talking about "this year" - c'mon you can't you come up with a better "red herring" than that ?
Not feeling very humorous today CH ?
Good afternoon Yvil ....you know I think interest rates won't come down this year (2024) so just as a matter of interest could you pick for us all, with your wealth of property knowledge, what month in 2024 the RBNZ will make the first interest rate cut ?
My concern is if they do make a cut, the overall economy will be in a worse state, than it is today.
Down down down, in ponzi town.
Hmmm it doesn't take much smarts in a comment to get lots of thumbs up ! Let me try it.
Down down down, in ponzi town.
Well folks, the message of the day is that you too can pay $10.00 per month and assassinate your own character at the same time......
A fool and his money are soon parted.
Oneroof—the most property friendly agent report last month data shows, property price drop are speed up, it is impossible to lie about property booming or up trend this year at all.
"it is impossible to lie about property booming or up trend this year at all"
I think it's very possible, look: "Property prices are booming and there is a clear uptrend this year". See I've done it.
Just keep you happy 😃, house price went up 100% yesterday.
I've been thinking about it, price trends haven't been updated on realestate.co.nz since April. Could it be they're trying to hide something?
(drop speeding up dramatically?)
Interest.co.nz monitored the auctions of just 236 properties last week, down from 282 the previous week and 301 the week before that.
Where are all the desperate sellers ?
Maybe they're waiting for the brightline test to reduce to 2 years from today ?
Then again, there's no tax to pay if you don't make money on the sale of your property !
TradeMe Property Search total today = 42,804. How many months/years stock is this Yves? Not taking into account the multitude of people who appear to have been waiting for the new 2-year brightine to come in before selling as there is a world of financial stress out there for people who jumped on the greed train.....
You don't have to be an astrophysicist to see where this is going.
Why do you answer my questions with another different question Jose?
Apologies hall monitor - carry on.....
No problem, so what do you think ?
Where are all the desperate sellers ?
Maybe they're waiting for the brightline test to reduce to 2 years from today ?
Then again, there's no tax to pay if you don't make money on the sale of your property !
There are 42,000 properties on TradeME in NZ right now, and that doesn't even count anyone who is waiting to sell come 1st July. Some of them are sweet for now, but as things get tougher, more will be scrambling to offload.
Ultimately we're all just sheep who have been following the flock sold on the idea that house prices only go up, but the game's about to change.
Hmmm, how is your technique of not addressing someone else's questions, working out in your private relationships, Amokk ? I imagine it would be really frustrating for anyone to have a conversation with a person who constantly changes the subject.
You say the sweetest things hall monitor. Love you long time.
Sorry, I assumed you were an adult, my bad.
Hey man, you’re in Bali? When I am overseas I have a total break from online forums like this. Much better to spend the time enjoying sightseeing, chilling out, swimming, eating etc.
It’s only a suggestion….
Thanks for your suggestion HM, today was a bit grey, even some rain, so I caught up on work and Interest. I like being on Interest, even when overseas.
Yvil I can see there's a great opportunity for cashed up investment buyers if they buy an investment now and hold for just the next two years. Interest rates will have dropped possibly 3 percent by mid 2026 and many new buyers will be back to pay more for todays bargains. Floating rates at over 8 percent have peaked
What do you think.
Personally, I think now is too early.
You can always offer the "reality" price. Some will take it.
"reality price" as you put it, is in the eye of the beholder. You and I can look at the same property and we're most likely to assess it at a different price. Also today's "reality price" is not he same as the one in 6 months time.
"TRUTH" report for y'all ! .....for the Auckland area ......14 properties (or 9%) sold on or above CV out of 159 that went to auction..... down, down, down into the abyss.....or as Yvil and TTP et al would say, a "great result" ...happy days are here again !! ...it's great living in lala land ....reminds me of the Beatles song "Strawberry Fields" ....where nothing is real .....as I have always said the truth WILL SET YOU FREE !
Thanks for the mention CH, I feel honoured. Next time, can you please put my name in CAPITALS, itallic and bold, pretty please ?
Quit shouting, Crazy Horse......
It makes you sound about as appealing as an empty kerosene can rolling down concrete steps on a cold and windy day.
TTP
NZ Gecko is that you. See my comment above
Im over at the Nats Market Crash Bishop news, doing a public service and giving the young Rookster some learnings and a reality check.
Why are you here then 🤭? Its still nice to hear from you again, are there any new and interesting properties in your watchlist
Always. Still enjoying the incessant hisssss, as the air bleeds continuously out of the still preggers housing PONZI balloon and hope returns for the FHBs, who will get will finally get a fair suck of the sav, at 3 to 4x DTIs.
They are a comming:)
The 3 to 4 x income homes are more likely to be 60m2 granny flats than the m2 size or land area of yesteryear. Pete wolfkamp was bemoaning the unnecessary R6.6 ceiling insulation standard that upsizes the trusses etc from 100mm to 300mm with additional designs and added cost. There are plenty of examples of increased construction costs
200,000 Granny units, flooding the accommodation market over coming years, would be a big deal. Many more roofs and beds:)
I thought residential consents had collapsed...
Did you make that number up? Btw Granny flats wont actually bring down HP, I was pulling your leg above
Auckland listings seem expensive to me. Am I doing the wrong thing by looking at the Homes.co.nz or Trademe value and treating that as a valid current price guide?
You're doing it wrong. Those "guides" are manipulated by agents, etc. As a proof just watch a selection of properties and check how much they sell for.
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