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.
60 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.
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…
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.
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.
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.
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…
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.
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.
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.
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…
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.
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