Auction room activity ticked up a bit compared to the previous week at the latest auctions round the country monitored by Interest.co.nz.
Interest.co.nz monitored the auctions of 265 residential properties throughout Aotearoa over the week of 20-26 July, up from 212 the previous week.
Sales were also higher with 90 properties selling under the hammer, giving an overall sales rate of 34%.
That was up from 31% the previous week, and was the highest sales rate since mid-March.
However even with that improvement in activity, the total numbers of the properties being offered at auction and the number being sold under the hammer are both very low, and the overall picture they paint is of auction activity bouncing along the winter bottom.
The chart below shows the district results from the latest auctions around the country, and details of the individual properties offered at all of the auctions monitored by interest.co,nz, including the selling prices of those that sold, are available on our Residential Auction Results page.
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75 Comments
Good week for Queenstown.
Northland weak again after.looking stronger past few weeks. The effect of the Brynderwyns being shut is massive on the Northland economy, not just RE.
% above RV beginning to pick up. Not sure if that is new and lower RVs being reflected or prices picking up.
SH1 is open again, give it 5 minutes and check again
With 100 percent sold and above CV Gisborne is another hotspot success story.
Love the Sat sarcasm
80% in Tauranga which is pretty good but the RV's did fall a bit. Lots of changes coming before Christmas, lower rates and the US election. Changed my mind on the automatic Trump win now.
A bit?
"Otumoetai = -12.26%
Mount Maunganui/Bayfair = - 11.81%
The Lakes = -11.84%"
(From the attached map. https://www.tauranga.govt.nz/living/property-and-rates/property-valuati…
That's RV fall. What is the fall from peak?
Yes, it's the RV fall. That's the 'bit' that was commented on above. I don't call a 12% fall in anything 'a bit'.
Re fall from peak? I'll let you look that up, but at a guess I'd say it's at least that and more.
Why don't you list the least affected areas, I don't live in either of those three anyway so yes it was only a bit.
So you think Harris will win now
Its now going to be a close race, Biden would have been a looser for sure. The fact its not another male totally upsets the apple cart, now you have someone who appeals to a totally different market, also before plenty of people hated both Biden and Trump so how many of those will now come out to vote instead of not bothering. My money is now on Harris.
At least she’s got good taste in music. I would vote for someone who digs Charles Mingus and buys his records
Waitakere, Papakura and Manukau are looking very vulnerable indeed.
Another week - same trend. Buyers hold the upper hand and will no doubt be lowballing.
Or not lowballing just no-balling. But hey spring is coming at the same time as rbnz is dropping... to breathe life in the patient (sarc)
Edit: spelling
Spring coming = even more listings. There's enough bloat as it is. In fact it's a glut. Since you're looking to buy, you'll be pleased - right?
As interest rates begin to fall, people will have a stronger incentive to buy……
And those who have been feeling the financial heat will be less pressured to sell.
Housing market may be near the low-point of the current cycle?? Let’s wait and see. 🧐
TTP
Friday 19th July 2024.
Hey, that’s my birthday! 🎈
TTP
And the present you chose for yourself is rumoured to be in the mail from Adrian.
A relative has been looking all year to buy a single level 2brm in/near Onehunga <$1M. Has been rubbish listed with little interest at open homes & they have found that every time they missed out the next one they offered on was a better house for the same price range.
They have just this week secured a 3brm in their mid price range, there were 4 offers on the property and many more people at the open home.
It's really not that simple. I Just bought a property in this vulnerable Waitakere. The interest was fierce. I had to move quick to secure it. There are plenty of people out there waiting. If you're in a position to buy and service debt now it's better to risk it going down a but more than missing the bottom.
4 bed 1 of 2 on a 800m2 cross lease. Nice area, great acces to Westgate and highway for under $700k.
Imagine imagining that 3yrs ago...
Good on you, this is the market bottom, hence the interest.
It's really not that simple. I Just bought a property in this vulnerable Waitakere. The interest was fierce. I had to move quick to secure it. There are plenty of people out there waiting. If you're in a position to buy and service debt now it's better to risk it going down a bit more than missing the bottom.
4 bed 1 of 2 on a 800m2 cross lease. Nice area, great acces to Westgate and highway for under $700k.
Imagine imagining that 3yrs ago...
Steady as with possibly a small bump reflecting the recent rate cuts. Spring is coming.
I compared the New Zealand residential property market participants to 'trained circus seals' earlier this week; that at the first sign 'hope', out we would all dutifully go to "get in before everyone else, and prices rise"
On reflection, that was probably a bit unkind to the seals. We're much more like Pavlov's Dogs really...
"Pavlov was a psychologist who figured out you could make dogs drool by shaking a bell at them when you give them food, then eventually just by shaking the bell."
As the #***#** landlord never does any work to clean the outside this morning I decided I would spruce up and wash the house, long overdue now lookz a million bucks.. what a good boy am I woof woof
I dont know why I did it as I could just as easily be doing this on my own place.. And get a double reward, self satisfaction and added value
Edit: grammar
"The Pavlovian "buy the dip" reflex that was so profitable on the way up now becomes the road to ruin as every pop higher gets sold. Those playing "buy the dip" are eventually wiped out, leaving only those burned and wary. Eventually people tire of losing and they give up. Buyers vanish, the bid keeps dropping until buyers are willing to gamble that "this is the bottom." But should asset prices continue sliding after an initial euphoric pop higher--"the bottom is in, buy!"--then those who held back find their caution reinforced: that wasn't the bottom after all, and everyone who jumped in lost money. As every surge of "buy the dip" players has their head handed to them on a platter, the market goes bidless--everyone who wanted to play "catch the falling knife" has been burned, and those who have lost the "animal spirits" to gamble stay out. The market goes bidless, and asset prices crash to levels no one in the greed-euphoria stage could imagine were even remotely possible."
Those that think the "bottom is in" know little of long-term history, risk, or real INCOME BACKED valuations.
When the risk-free rate of return is 5% why would anyone buy or hold housing (as their major investment) when it returns just 2 to 4% ?
Now as we have all seen, the major capital losses accrued since 2021, the risk of holding a 3% earning housing investment, is just the riskiest strategy and devoid of any thoughts of the currently HIGHLY ELEVATED stage of the most epic asset Super-Bubble we have ever witnessed.
Many are conned into thinking in the "return to normal phase" - its clear as day. Incredibly risky and about to see the biggest downdraft of all!
Stages in a Bubble | The Geography of Transport Systems (transportgeography.org)
Unfortunately those 5% risk-free returns (I presume you meant the likes of TDs?) might be short lived as interest rates drop back down. Savers will be compelled to park their money elsewhere and real estate has always been a good place to park money over the long term. Of course it's risky, but so are most investments. Even TDs are not without risk - a bank can collapse and in NZ there is no government backed deposit guarantee just yet. If things will turn really bad in NZ/AUS then it's not impossible for some banks to collapse taking those "Risk-free" deposits with them.
I choose 5% as the risk free rate, as the midpoint between Govt bonds (safest) and Big Banks TDs (safe) with the Govt owned Kiwibank, being the safest in a failure event.
The Big Banks will be bailed out by Govt, as we all know they are just TBTF.
Small banks are likely to be eaten by wolves.
So why risk the downside of currently overpaying for NZ Property by 40% ?? When you just get tiny earnings compensation of 3%........ and the mortgage funds are 6.5% with insurances, rates and maintenance going through the roof, with no respite in sight.
If your living in it, you can live with the losses comming for a number of years, but as an investment or monetery store of value, with valuations still sky high, its a mugs investment, by any measure!
"If your living in it, you can live with the losses comming for a number of years"
Not for those highly leveraged owners who are unable to hold on. Here is one example:
https://www.trademe.co.nz/property/residential-property-for-sale/auctio…
Remember there are thousands of households in negative equity:
https://www.rnz.co.nz/news/business/519396/thousands-of-first-home-buye…
Seems there is more desire to hopefully be proven right in this chat than to take an educated approach and capitalise on a viable opportunity when it appears.
Gee thanks, a 9 year old knows who Pavlov is.
Interesting case. Not especially convincing on either side of the argument. I would have thought a tangi with gang members attending is a pretty strong clue there were gang people living on the property.
https://www.nzherald.co.nz/nz/tribunal-clears-realtor-after-buyer-claim…
People buying a house sight unseen are asking for problems.
Have done it many many times over the years at auction!
Never made a poor decision yet!
The good buys are when you have no competition, and the profits flow.
The good buys are when.. the profits flow.
No shit?!
No competition is when you buy well!!
If I did not know better I would swear you and Wingman are one and the same person. No empathy for others, always right, never made a financial mistake and it’s so easy to invest in property. Get it right every time. He is a sad old conspiracy theorist. I hope you are not in that camp.
You forgot the word 'rich'.
People would say I am also but I have empathy and I am not living down a rabbit hole like you.
I'm not living down a rabbit hole, I'm living THE life.
New house just started, will keep me busy for about 18 months, and sell my existing house just before the election, by which time I'm pretty sure the gravy train will have left the station.
I'm not sure whether people have empathy or not is relevant to this discussion. What good is empathy to anyone, really?
Not sure why you say I have no empathy for others?
I have got where I am financially thru sheer hard work!
Over the years you have even looked down on and criticised those who pay you rent. Maybe they did not have your luck or opportunities.
Never looked down on any tenant!
It is not about luck Ex Agent, it is about taking opportunities and working!
Just pointless moaning about things, it will never improve your financial position, but then you have to be prepared to invest and work and take advice!
Is 'ex agent' actually Gordon in disguise
I can see why a load of people on here are up shit creek without a paddle, totally worried about the wrong things like who the anonymous person used to be and twits just picking on your spelling. People that are successful focus on what actually matters.
So you're triggered by that question but rant about being successful. Gee I really hope you dont have any spawn
It's hard to take people seriously who don't know the difference between looser and loser.
Like I said , twits....
Working hard doesn't mean you are gifted with empathy. More often than not it is the other way around. Curious to know how you joined your dots.
Those who crow the loudest about how hard they worked are usually trying to stitch together a fictional tale to justify their economic luck.
Anybody that truly worked hard for their wealth or success, will be most humble about it and won't crow to strangers on a financial news website.
After reading the whole article the woman buyer sounds dodgy as sin
Sure. But I don’t buy the agent’s case either
But yeah she didn’t help her case at all
Odd case, is an agent obliged to tell a prospective buyer who lives next door to a property, gang member or otherwise? Surely it's a buyer's responsibility to find out. At the very least she could have looked at Google Street view although maybe she doesn't know it exists.
I agree. There could be a wreckers yard nearby that could catch alight, or a halfway house where doped up dero's roam the streets.
The possibilities are endless.
AFAIK the legal disclosure obligation the vendor has relates solely to known issues with the property actually being sold.
Agents "obligations" outside any legal compliance would be a matter for their conscience, good luck with that.
Surely if that was the case the tribunal would have said that, and it would be a simple case and argument over.
The fact they seemed to go into a lot of detail and consideration as to whether or not the agent really knew a gang was living next door suggests there is, or could be, a duty of disclosure.
Yes, cheers, I should have Googled it before I asked as I found the same, useful for others to know. Also found an article about an agent found guilty of misconduct for not disclosing a gang pad next door, it would be interesting to know what the penalty was.
Edited to add: https://www.nzherald.co.nz/nz/family-sues-real-estate-agent-over-non-disclosure/FWKBT4WTVHMT2BZPWANKOEBLKA/
Both Robson and his agency were fined $5000 but the authority did not award compensation to the family. The complainants have now filed civil proceedings in the High Court seeking financial damages relating to lost value, "stigma" and distress. They allege misleading and deceptive conduct under the Fair Trading Act, and negligence under the Real Estate Agents Act. If successful, compensation could run into the hundreds of thousands of dollars.
Buyer beware - take a walk in the neighbourhood without the agent and maybe knock on a few doors.
Thanks for your & 26@main efforts to clarify. Good to know.
In my mind it raises all sorts of questions around what should or shouldn’t be disclosed. Seems a real can of worms
I once saw patched gang members hanging around outside my neighbours house. Does that mean its now a "gang house"? Never saw them again. So obviously not. And now that there are gang members everywhere, its going to be pretty hard to avoid running into one.
Wonder what the ground rent is
at 11k.... lots
Yeah
and who knows in the future
surely a liability not worth paying even a dollar for
Ownership costs on this 3 BDRM in the same complex were $23,000.
Need to know when ground rents are up for renewal and what they could be as well as body corporate costs for repairs and maintenance.
If costs remain at $23,000 level, it could mean net annual cashflow after operating expenses of $7,400 before tax on a purchase price of $11,000.
If costs rise by 32% or more, then the cashflow potentially becomes negative.
https://www.oneroof.co.nz/news/cheap-and-cheerful-train-station-apartme…
Homes in St Johns get low prices for the same reasons, leasehold is broken.
"$1 res sold 11k"
Did the previous owner experience a 7.2% p.a growth in price from their purchase price? (i.e the growth rate required for prices to double every 10 years)
1.95% mortgage rate for one year! This developer must be getting a bit desperate to offload homes.
The banks will still need to stress test at 8.5~9% though won’t they? So not sure how effective this tactic is. And buyers will need to be confident they can afford circa 5-5.5% in a year’s time.
Funding another to become banks risk patsy. Despite indeed.
Pete wolfkamp on zb discussed Land 400k and construction cost 750k. From those numbers I see that construction is the issue and land is no longer the issue. Also how does the average young couple afford 1.15million.
Who says it's on the bottom? Plenty of soil to keep digging this hole.
No way in hell has the market bottomed. Impossible.
We are almost midway in this major Housing crash. We are at the point of the after top, dead cat bounce-Return to Normal, then the Real down leg takes center stage next, at pace.
https://www.tradersmagazine.com/departments/equities/data-reveals-the-s…
The currently still highly elevated prices need 3.5% mortgage rates, to see any life, or asset inflation.
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