Auction numbers remained on their winter lows at the latest auctions monitored by interest.co.nz, but there was a spring-like jump in the number of properties that sold.
Interest.co.nz monitored the auctions of 255 residential properties over the week of 24-30 August, little changed from the previous five weeks where it has bounced around between 220 and 267 properties a week.
But there was a good sized jump in the number of properties that sold, with 104 selling under the hammer. That's the most sales at the auctions monitored by interest.co.nz since the end of May.
That gave an overall sales rate for the week of 41%, the highest it has been since the beginning of February.
However prices remained soft, with 35% of the properties that sold fetching prices equal to or better than their rating valuation, which was about where it has been since the end of May.
But with the past week being the final week of winter, we should start seeing a lift in total activity levels over the next few weeks.
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.
71 Comments
It's good to see percentage of those selling above/equal to RV remain in the doldrums, it signifies a true buyers market and ongoing weakness in vendors pricing power. With inventory overhang with us for some time to come, there need be no hurry to buy. The upper brackets asking/sale prices will make interesting reading over the next year as more jobs are lost, people try to downsize and shed debt as it proves costly with the absence of capital gains.
While this long overdue correction continues, the unrealistic expectations of many are given a much needed reset.
There is a chance you might be wrong...... think BNZ said 7% growth next year? I know I know............. what does BNZ know. For me and my interests I feel there is a breeze of fresh air dancing through the tops of the trees and you know what the breeze might be whispering ?
well thanks for asking (i know you did not ) but the breeze is whispering- bbbbuuuuuuuyyyyyyyyy nnnnnnnnoooowwwwww ooooorrrrr iiiitttttt wwiiiiilllll bbbbeeeeeee tooooo lllllllllaaaaaaaaaatttttttttteeeeeeeee - you have to imagine the wind swishing gently through the trees.......... because if you dont in march there will be a cry in your ear - TOO LATE TOO LATE - THE BARGAINS HAVE PASSED YOU BUY.
No, you're wrong. It was last January;
by Harvey W | 17th Jan 24, 11:57am
Interest rates easing, house prices lifting, buy now
No wait, wasn't it also August 2023? Anyway, thanks for the entertainment. Posts made by the heavily vested are a great source of entertainment that's for sure!
Same old same ol my friend always copying and pasting and trying to bring the mood down 2023 - is so last year.......
-what changed since August 2023?
1. Interest rates are on their way down - rather quickly
1.5. inflation is tumbling
1.75 - new govt
2. more houses are selling
3. business confidence up
4. tax cuts/ interest tax deductibility back baby
i would say if we can sort out geopolitical globaly before end of the year (middle east) things will be humming globally again (this is of course very much an optimist view in that i believe people are inheritantly good and would like to resolve conflict)
I have read most of your messages retired man - and there was a time for overly pessimistic views however i feel the wheel is turning? I might be wrong however the pendulum always swing.
In my opinion you are slowly slowly getting more irrelavant? I am leaving myself open here to eat my words in March however my guess is there will be crickets from you -
The rose tints in your glasses are blocking out:
- House prices still falling
- Supply exceeds demand
- Lag effect of interest rate hikes still flowing through
- Lag effect of interest rate cuts has barely commenced
- Unemployment is rising
- 10-2 yield curve still inverted (for 883 days)
- New govt wants more affordable housing
Yes ‘my personal wealth and investments are more important than the collective financial and social stability of the nation as a whole and the ability for our country to create economic opportunities for those in the younger generations who don’t yet own financial assets such as housing/shares’.
I mean if price to earning ratios were historically low for these assets I’d have no problem with people trying to pump them - but when they have been historically extremely high for a long time and are causing such financial and social instability, I just don’t get the desperation to want them to go even higher price wise and create even more of this problem. Don’t we ever want to give future generations hope for opportunity and prosperity in this nation? As opposed to giving more to those who already have enough?
Yes, I firmly believe the NZ economy is still on a downward trajectory. The data is hard to ignore:
- Government stimulus is declining & forecasted much lower in 2025
- We’ve only had a measly 25bp rate cut which has next to zero impact when the OCR rose by 525bp
- Unemployment rate is rising
- Underutilisation rate is rising
- Businesses are closing down at an increasing rate
- Net immigration is falling sharply
The OCR is still highly contractionary in relation to current house prices.
Yes agree I think the economic contraction (globally) is just staring or is going to between now and Christmas. But people are claiming the bottom is in for asset price falls..doesn’t make much sense to me.
Most asset price destruction occurs after yield curves normalise and we are only just approaching that point now.
You would say the same thing
Would I? Yet, house stock is not decreasing, HPI is falling, sales turnover is still unhealthy and joblessness is still increasing. Facts aside, what you leveraged lot fail to realize is that we bought our home to live in. We don't feverishly check Homes.co on a daily basis to see if it's risen in value. There is simply more to life to be honest. Houses should be for living in and not speculating on. Given the run up to froth, steadily falling house prices should be seen as a positive development.
edit.
A message for those expecting pay rises over the next 12-24 months....
In reality, for the time being, both public and private sectors are cash strapped.
A lot of recency and confirmation bias in these types of views (in my opinion) ie that what has happened in the past 30 years is certainly what is going to happen again in the near future.
But what if you are wrong? Buying now could still be a terrible mistake. Prices could still fall another 20-30% in nominal terms if this recession really gets going - which given how long our yield curve has been inverted could indicate that this could be one heck of a recession - we may see rising unemployment and flat/falling incomes, business failures, for the next 24 months. Mortgagee sales could start rising as a result.
Id be sitting in the sidelines until at least 6-12 months after the yield curve has normalised - so that would put us into 2025.
At the moment I think we’ve only blown away the Covid froth from house prices. That real falls may actually be ahead of us and not behind us - but that isn’t being given a huge amount of consideration as a lot assume that the worst is now over even though we are only just starting to enter the economic contraction caused by higher rates.
Yes the housing market still seems rather poisonous and worth staying away from for a good while yet.
I’m happy to have not invested in it in 2021 and according to average wage/house prices measures, housing in New Zealand is still hideously over priced in 2024 despite reductions since.
There’s a housing bubble in many areas overseas too and to me this speaks volumes in terms of NZ economy bobbing like a cork in the wake of larger economies.
Australia and the UK seem a little behind us. I follow the French news too and they seem to be at a similar stage to us, albeit their bubble was not at all as inflated as ours. China’s is in free fall capitulation mode and we’d be naive to believe whatever economic happenings over there won’t affect us at all.
I’d be very interested to hear what stage the bubble is at in the US and Canada, compared to us and how extreme theirs is.
In any case, we are overly obsessed with making capital gains in this country - giving the middle finger to productive enterprise - and if we are to have a viable future for our children, (where shelter is a realistic opportunity for all) this mentality must change.
- For the RòokiestNifters and other fellow travelling Spruikers out there - the CURRENT MARKET PRICES NEED MORTAGE RATES BELOW 3.5% - TO JUST MAINTAIN THEM!!
No upwards pricing possible, the market will be sliding down the slippery, higher interest rate snake, until 2026/2027.
The OverLeveraged, who are sweating bullets, should ditch Dddebt while buyers are still willing to pay -30% to -40% off the 2021 prices.
2012 to 2015 housing market prices, are coming into style again, soon.
These rampant Spruikers here, have seen more MARKET Bottoms, than Freddy Mercury.
sound like you convincing yourself.... yes I wont disagree it has been a tough time. however this spruikvester is seeing light at the end of the tunnel. I will even further admit that i will righsize my portfolio in the future however should interest rates hit 5 or even 5.5 even on my modest salary and interest tax deductibility being back life is on the improve... Property investing in NZ is your golden ticket - if you get it you a spruiker if you dont then fine go on with your normal life and dont buy or wait to buy - while you do so you are more than welcome to rent my houses up and down the motu.
Property investment in NZ was the golden ticket 1990-2021. It formed a massive bubble in real/inflation adjusted terms where asset price went up significantly above inflation/wage growth.
It could be the opposite the coming decades as a result (ie we may see flat/rising interest rates over the coming decades with stagnant growth in productivity and wages, it’s possible the smart money has already been made and now exited the market).
And who is trying to convince who? Who is listening to whispering winds?
IO, I agree. This correction could play out over years. I base this on reading history of other financial bubbles.
You can’t have something for nothing; property capital gains indefinitely? Ok, try keeping wage growth and productivity growing at the same pace indefinitely too while not destroying the currency through inflation… not going to happen, something has to give.
Rapid CG gains and super low mortgage rates were an historically peculiar event that is not likely to be repeated any time soon in all probability it will be a marathon just to create stability. Sentiment running high wont alter the rock and hard place many are stuck in. Too early to call 'bottom' imo ... low equity buyers could end up kicking themselves....
The first interest rate reduction won't set the market on fire, but there's a good chance the next couple might.
.25% won't do much, but as conditions worsen, or remain the same, the probability of of deeper rate reductions increases.
Numbers for buyers are dubious right now, but they will stack up again, so start doing your homework and attend those open homes if you're in the market.
How's the localised minor flooding and thunderstorms working out for the open homes, in the Riverhead low lying catchments? Bring the waders?
Expect more of this to be the future, in soggy places........ Riverhead bridge breaks away! North-West Auckland flooding. (youtube.com)
I know exactly where that bridge is and it's miles away from Riverhead, and where I have my land. . I've driven over it. I remember that incident occurring.
The boom continues in Riverhead, with subdivision moving along the Riverhead-Coatesville highway. New subdivisions sell out pretty quickly, and these are the bad times...right?
Riverhead property prices are on the move, but I doubt you'll be interested because only the more well informed types will be sniffing around there.
Coatesville prices are up 47% in the last year - and it's spreading along the highway.
Zwifter, if there ever was a DGM on here it is you. It speaks volumes when an individual who supposedly owns his home outright cannot rejoice in falling house prices to give the next generation a leg up. All you've done on here since August last year is encourage FOMO. Thankfully, this generation is witnessing what was considered inconceivable, mounting job losses and falling house prices and there need be no hurry to buy. Sh-t really does happen and the bigger deposit you enter with, the better off you are.
Not necessarily true. When one is happy with ones lot in life they are happy to see others get a helping hand. Are you one of those with intense self interest where enough is never enough to the point of denying others a chance? Like I've said here before, houses are for living in not obsessing over for capital gains.
Unfortunately for you this is not North Korea.
Houses are available to be traded like any other item...cars, aeroplanes, land etc.
What owners do with them is their business, and if they want to take a punt and make money out of them, good luck.There's 40,000 empty houses in Auckland owned by those that can't be bothered with tenants.
Ahhhh, the old communist angle. Unlike the typical communist Despot, I'm more likely to consider the emotional and financial wellbeing of the wider community. It's very much case in point if the only way for you to get self gratification is through capital gains on houses - me, myself and I.
That's what communism's all about isn't it? Supposedly the wider community, but actually the only ones that benefit are those at the top.
Something known to everyone else except maybe you.
I suppose you could call it socialism, but it's been a colossal failure, as recently exhibited by Comrade Ardern's hopeless halfwits as they spent billions on the most moronic projects anyone can possibly imagine.
Wingman, I have this nagging suspicion that you're not as successful as you would like all to believe - (role play). High net worth individuals don't need to boast their hearts out on internet platforms. On the other hand, if a venture to which an individual is heavily vested happens to be still in it's infancy stage, through internalized insecurities, some individuals will eagerly spread word of it much likened to a get rich quick scheme. If anything, it just makes others suspicious.
Get-rich-quick schemes are for suckers like goldbugs.
I started dabbling in property around 1975, so I've got a bit of a background. I don't need to borrow the money, it's in the bank, so please don't lose any sleep over my alleged plight.
The first property I bought was a section on the Scenic Drive for $2,000. Hahaha, the good ol' days.
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