Barfoot & Thompson's sales were at a 14 year low in June while stock levels were at a 14 year high

I looked at buying leasehold in St John's Auckland - interestingly the outgoings listed as payable included any land tax due.  I thought that was a bit on the nose. Although, an LVT would knock the land value down which would eventually flow onto lower ground rent if they stuck to their current method of pricing it.

But then they also wanted you to insure and maintain the house, including reinstatement if it burnt down.  Not sure why as they wouldn't own the house!  Maybe they were hoping to set the ground rent for bit above the going rate for vacant section grazing...

And we all know how competent they are at addressing that mandate.

Lowest June sales in 14 years, not much of the silly buzzword happening.

Exactly, with surplus townhouse stock on the market, why buy off the plans and take the non completion, quality and inflation risks when you can buy a completed one, do the inspection, and negotiate the price better?

And most townhouse schemes rely on some forward purchases for financing.

BuT Nz Is SpEciAL

Funny reply I suppose (which is guaranteed to yield you lots of thumbs up).  If you're serious, if sellers were desperate to sell, like many believe, they would drop asking prices to a level that suits buyers and prices would therefore drop, significantly.  This is not happening.  

(edited)

Thanks to inflation, buyers dont have enough income to service the loan so banks wont lend to them.

Exactly. It'll be an interesting few months while we wait and see if there's a rush of listings that were purchased in that 2019-2022 that would've been done at high purchase price on low interest loans. Even now on Trade Me, my highly scientific method of testing market conditions (typing mortgagee into TM search bar) has seen an increase from 37 to 65 in the last few months, up from mid-20s last year. Interesting times ahead.

Really depends what spec crowd and agents have been driving. You have to see what shows up.

No need ..robo taxi coming soon

Thanks ITG, but it doesn't answer my point that it "Would be nice to have a comparison with the same month a year ago."

2024: June’s average sales price at $1,097,896 

2023: Barfoot's median selling price in June was $1,020,000





Assuming that June 2024 median is comparable to June 2024 average (as the mathematically inclined know, it may not be), then that is a FALL of 7%.

We'll get a better indication when REINZ HPI comes out.

Yes, have you ever climbed the Matterhorn ?

The buyers are not prepared to meet the market and its a buyers market.

People can be stupid for a long time, a few more months REINZ data and the sellers will know that the first offer was the best offer.

I"m not sure what you mean by holding up? The market is currently crashing, it doesn't go down as quick as it rises. Why? Because people are quick to jump on a Ponzi for FOMO but it takes a while for people to understand that the narrative that convinced them to buy was a lie, people resist accepting reality if reality means they were wrong, especially if they were vociferously exclaiming how right they were. 

Its not the sharemarket where its "escalator up, elevator down".  Its actually the opposite, elevator up, escalator down.  It plays out over years, and its a long, grinding process.  Currently people are thinking "if it doesnt sell, I'll rent it out or put it on AirBnB".  But now rents are falling, and AirBnB is dying.  So it will be that stock that needs to come back to the market with desperate sellers, not the ones that are just at the beginning of "testing the market".  

So patience, grasshopper.

As I discussed with a mate of mine 30 years ago .....the price, value, worth etc etc of a property in $ terms is ONLY worth what the property will actually SELL for ....anyone can yell from the rooftops, at bbq's, at work, across the city, hills and valleys, my property is worth $XXX ....BUT ONLY TILL that exact $XXX is on a fully signed and unconditional sales and purchase agreement, any fool can just pull a price out of their hat, at any time .....and no one can dispute it, because it has YET to be proven. 

I'm looking but not seriously as the correction is not far enough advanced. The panic selling is still to arrive, as it will. . 

LOL, truly!

And prove Muldoon right by increasing average IQ of both countries 

If I was feeling particularly facetious I'd point out that the median price has risen more than 7% in the last 12 months. That's double in ten years territory.

I expect prices will drop a tad to clear the glut. But you must be feeling pretty smug calling the floor in July 2023 right now!

Lol that DGM again.. being the investors who cheer as the economy get distorted by house prices causing suffering for everyone. 

Happiness is found in a buzzing productive economy with an excited next generation starting innovative biz.

Not a bunch of middle age speculators gambling on property... it's sad.

What's cool is our government has noticed that the majority of their voters want the economy and house prices sorted out..indeed their chance of election will hinge on it. I suspect they will make housing affordability a goal.. then they can look good at the end of the bust. When they fix it.

I reckon there is a good chance they will throw dgms (speculative  investors) under the proverbial bus.

Frankly, I trust Barfoot and Thompson way ahead of the typical DGM squatter........

Barfoot and Thompson provide relevant date in a timely manner - no matter where the housing market happens to be sitting on the property cycle. Thus, I'm happy to give B & T credit. Notably, criticisms of B & T data are few and far between - not bad at all for a real estate agency.

TTP

Unlikely prices actually went up on like for like houses.

There is no reason for that. .. there is less money in the economy, less buyers, sellers with more urgency to sell, REAs needing whatever income they can get..... all points to dropping prices

A townhouse isn't a house? 

Nah was the 1930's. We ate rabbit and burnt coal.

Rents will be wholesale dropping soon. Thousands of unsold newbuilds, will see to it.

How will this work given that those low rents cannot remotely pay for the financing those unsold newbuilds are burdened with.

The only reason interest is eating into everything is due to the excessive debt. Had we never seen such silly increases in the price of housing, we would not be worrying about the current interest rates. Don’t hate the player, hate the game, and the game sure won’t change to favour those who loaded up on debt until we have a further drop in inflation, house prices and an increase in unemployment.