Spring appears to have finally arrived in the auction rooms, with a big lift in the number of residential properties on offer at the latest auctions, and a jump in the number being sold under the hammer.
Altogether 320 residential properties were offered at the auctions monitored by interest.co.nz over the week of 14-20 September, up from 230 the previous week.
That was the first time more than 300 properties a week have gone under the hammer in more than two months.
Of those, 139 were sold under the hammer, compared to 94 the previous week.
That took the overall sales rate to 43%.
The sales rate has been slowly but steadily increasing for the last six weeks.
Over winter it was consistently in the 30% to 33% range, but has pushed up past 40% in the last few weeks.
The big increase in auction room activity over the last week has been mainly centered on Auckland.
The boost in activity is not unexpected as sales activity generally starts to pick up at this time of year.
However it seems buyers remain cautious on price, with just over a third of the properties sold fetching prices that equaled or exceeded their rating valuation.
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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110 Comments
When the hell are the now very delayed and new Auck RVs out?
I'm keen to see the spectre of the -25% nominal drops crystallise on the gaunt faces of the nefarious spruiker community!
This would be nearly -45% REAL terms LOSS, as inflation has roared since 2021 and housing has been the absolute worst inflation hedge, in the history of mankind.
NZ property still has another -15 to -25% nominal, still to drop, as the only stimulus will be if mortgage rates go below 3%..... or yields all go above 6%. Pick your poison VERY CAREFULLY Spruikers!!
The downdraught in house prices is well entrenched!
Gold has been the BEST and Ole Painter and Wingers antiGOLDbug - wobbleism, has not aged well AT ALL!!
Gold is on the biggest and most epic run northwards, in decades!!
https://www.bloomberg.com/markets/commodities
The force is strong in the AU and AG market. An unstoppable loaded Bullion BULLtrain, now the FED is trimming the rates a little......
Tony A and Ash C (+Painter and Winger) will need to go into a safe house (one of their more obscure rentals perhaps??) or witness protection hiding.....as their bad and always "strong and wrong" house buying advice, has put tens of thousands into the poorhouse and bankruptcy.
Where has the FMA been all the while they spruiked their self serving, own selfish vested interest pocket books? - sucking in the many good, bad and foolish souls, into stupid and speculative rental investments?? Where was the FMA???
The +10% gains in 2024, were promised by Tony Alexander and all the Oneroof / ZB property vested interest contributors.
Now we all know -10% losses are more likelyin FY 2924 and a total of 6 years of negative market losses is likely, given the international analogue of similar situations, or will NZ be worse????
They just give really bad, selfish vested interest, selfish ticket clipping advice.
Some gumbies/financially inept NZers would extend and leverage themselves stupidly and dangeriously on the SO CALLED "independent economist " advice. One financialy hiccup and the are stuffed, sometimes forced to sell the house/"investment" at life changing losses.
With capital losses being more likely in the future, buyers should look at the longterm value curve along with the average wage inflation curve and discount substantially on any future offers.
FHBs especially, don't be the housing speculators useful idiot or fall guy!
Take the tinfoil hat off, the valuation date is set as 1 May 2024, so the RV will be the value as at that date.
https://opteonsolutions.com/nz/insights/auckland-council-revaluation
They'll be at least a month away as they'll still need to be audited by the Valuer general.
I think they are having trouble coming up with the numbers due to the house price volatility. The new RV's were delayed in Tauranga due to "Covid" or some rubbish, more like the fact that prices were roaring off to the moon. If they wait another 6 months in Auckland, prices will be increasing again and you end up with a new RV that's closer to the old one.
The usual nonsense from you, Tauranga's RVs were delayed by a month and it was nothing to do with prices, it was due to COVID.
Tauranga City Council Transactional Services Manager, Jim Taylor, says the Valuer-General has extended the revaluation timeframe due to the COVID-19 lockdown. Revaluation notices would usually be sent out in November. However, due to these delays, property owners will receive the new valuations from 20 December, if the valuations are approved” Mr Taylor says.
Harvey Wiener has both a Movie and Rental stock to sell. Don't take his bait.......his revered Ponzi is in tatters and falling in value with each Year on Year decline.
Future affordability is coming, wait till 2027 to 2028 to get a reasonable deal from a very Ponzi drunk and beaten up ole Wiener.....
An old Greek proverb goes something like - "A society grows great when old men plant trees in whose shade they shall never sit".
We're clearly seeing the opposite of that play out here fuelled by greed and disregard for the wellbeing of others.
People in this country then look at stats on crime, homelessness, poverty, mental illnesses and delude themselves into believing not enough "public investments" in these areas are causing this sharp decline in society.
Does the boomer phobia strike a nerve there TronMVP? I don’t dislike boomers, nor have any phobias around them, but like any generation they comes with both features and bugs. If you mention the bugs you have ‘boomer phobia’ apparently.
Should we instead bash the silent generation for being too passive or the millennials for being entitled brats? And then say look at the phobias people have about these generations.
Well the Boomers are the only generation to pull up the ladder behind them. The Silent Generation worked extremely hard to build a society that gave Boomers a good shot at life.
As a result, the Boomers felt like it was done for them personally and became very entitled, a bit like a silver spoon mentality. It's why they've hoarded al the wealth, monetized everything they could get their grubby mitts on and heavily underinvested in infrastructure. And they have the gall to think they're entitled to a pot worth $20b p.a. of taxpayer money for reaching age 65?
Gen X here. I see most of the day to day activity pumping the ponzi from Gen X and Millenials more than Boomers.
However the seed of this IMHO goes back before the Covid printing frenzy to the CDO ponzie of the naughties, which really got going after the repeal of the Glass-Steagall Act. Thanks Bill Clinton.
Lowering the cost of money to zero, in order to inflate the US Banks debts away, driving asset prices to the moon has ruined us. Let's hope this madness ends soon.
The local ticket clippers of course, were the Big4, the vested interests in the likes of Granny Herald, and the agents getting paid to sell baby sell. However I know many fine people in the media, banking and agency world. Does it really hold true that people of a certain age are responsible for this disastrous position we find ourselves in?
In 2024 positions or narratives you dislike = hate speech - primarily if your are from the political left.
If you’re a modem day leftie any narrative that doesn’t align with your own version of truth is called mis or disinformation (or hate speech) and needs to be censored - even if this removes one’s right to express an opinion.
(clearly if you are threatening to kill somebody or break the law then this isn’t ok).
Saying that boomers might have made a mess of things the last 40 years that they have been the dominant voting demographic = borderline hate speech!
"They've hoarded all the wealth and monetorized all they could get their grubby mitts on" was what one commenter wrote. That is different from your comment of "Boomers might have made a mess of things over the past 40 years".
I'm not a lefty and I agree with free speech. I'm just saying that some people's comments (certainly not yours) are borderline. You are respectful and reasonable in your comments, even those comments with which I disagree.
You haven't had a read of RBNZ C31 then. It's not so bad now, but if you go back to 2015 FHB took out $7.2b across 22k borrowers. Investors took out $22b in loans across 66k borrowers. So 3 x Investors to FHB. 2023 was FHB $1.2b x 26k borrowers, Investors $0.9b x 21k borrowers.
So what you're saying is Millenials made up a good chunk of these investor loans?
Nzan, that is not quite what I am saying at all, I am saying that the majority of boomers are out of the workforce or close to it, and that the day to day selling, advertising and funding of this debacle are carried out by people still in the workforce.
I believe that the RBNZ C31 series, while excellent, does not get granular enough with the blanket 'investor' term to identify the age demographic sufficiently. Perhaps you could help us break that investor lump into Boomer, X, Millenial or whatever. Yes the FOMO driven urge to find revenue in housing rather than widget makers has been a collosal disaster driven by spinners, and perpetrated against all generations alive and probably those yet to be born.
I am also saying that this outrageous level of price to incomes has its origins in the drive to lower interest rates after 2008.
What does being out of the workforce have to do with investing in property? How many downsizers have released a ton of cash, and up until 2021 had the choice of a 2% term deposit or leveraging that into a few rental properties?
How many Boomers that owned their own home + maybe 1 or 2 rentals realized they could suddenly magic a deposit or 3 out of thin air to put down on a rental property without selling? You think the investor lump is driven by Millenials working 80 hours a week saving a deposit while paying rent?
I think the question was asked, very politely, do you have data to back up your assertions? As to your second paragraph, how many boomers didn't? You're a boomer hater, it comes across in many of your comments. Your other comments are great and really informative though.
Marewa made the initial claim it was Gen-X & Millenials pumping the ponzi. I've questioned their claim by pointing out RBNZ C31 numbers particularly around investors vs FHB. What's more likely? Gen-X/Millenials or Boomers contributing to this investor activity? Home ownership rates may provide a clue.
- https://www.stats.govt.nz/news/homeownership-rate-lowest-in-almost-70-y…
- https://www.interest.co.nz/property/69025/census-figures-show-home-owne…
I agree, my comments often come across as Boomer hating. As a collective cohort they've stuffed the country for future generations. You're welcome to challenge the content of these comments rather than resorting to Ad Hominem. But thanks for the kudos.
@like me. I have no boomer parents and self made, honest, worry about yourself and your kids, be a good human - thats all you can do - if you want to chance society start with yourself and if there is something left over be a pillar in your community. Complaining with no action is not an attrative trait.
With the US Fed starting with 0.5% - while their economy is still relatively healthy and growing - the RBNZ may decide 0.75% isn't nearly enough.
And I'd agree. We should be just a few pips above the OCR neutral rate by now. (Worst RBNZ ever! I think I've mentioned that?)
Just back from a cruise round the Pacific, you wouldn't know we are in a recession. As predicted sales will pickup now towards summer and another 50bps cut in rates is coming and another 25bps before Christmas. Now is the time to buy people, you have a couple of months left.
Lol
People are completely free to ignore my views. I think rapid OCR cuts will stabilise the market, before starting to rise reasonably significantly from this time next year once the OCR is south of 3%
I am also speaking from my own experiences. I bought into B. Hickey’s opinion back in 2008/2009 that prices would fall 25%. They didn’t, and I missed out on an opportunity. And it wouldn’t be until 2019 that I could finally buy
but people need to make up their own minds, there’s certainly no certainty
It’s a difficult one because like the boy that cried wolf, one day the wolf might really appear. And your theory at present is to ignore the boy crying wolf because he was wrong in the past.
You might be right but you could also be terribly wrong (and so could I..)
Interesting angle. And quite right. History is littered with people who thought things wouldn't change and lost the shirt on their back....
Kodak and cameras
Blockbuster and video shops
Germany and petrol cars
Nz and real estate prices doubling every 10 years
Sooner or later your cheese gets moved. And we are in a period of unprecedented change.
“Interesting angle. And quite right. History is littered with people who thought things wouldn't change and lost the shirt on their back....
Kodak and cameras
Blockbuster and video shops
Germany and petrol cars
Nz and real estate prices doubling every 10 years
Sooner or later your cheese gets moved. And we are in a period of unprecedented change.”
Interesting perspective, but I think it’s a bit of an overreach. If we’re going by that logic, we could also say that people will never stop consuming alcohol, or that real estate will always be a reliable way to accumulate wealth. Some trends are more deeply ingrained and enduring than others.
I am talking about FHBs, not investors. I didn’t make that clear. But it goes without saying, as I have said many times, that residential property investment is a dud.
I know a couple of FHBs who got excellent deals over the last few months. While prices won’t increase much over the next 6-9 months, I suspect these sorts of great buys won’t be as common.
"I am talking about FHBs, not investors. I didn’t make that clear."
You don't need to make the distinction. If 'investors' sit on their hands the - as we've seen - and FHBs play it cool - as we've also seen - the inevitable will continue. Even if further OCR cuts result in FHBs being able to 'afford' asking prices, many FHBs are still not in any rush as renting remains cheaper, the best I think we'll see is price 'stabilization' for quite a few years. You know, like post-GFC.
https://www.green-acres.fr/en/properties/house/carcassonne/Aujf6dlxxvw4…
Check out what you can get in a beautiful area of France next to UNESCO world heritage site compared to alright house in Remers, Orakei and North Shore.
No Africa or the Middle East must be pretty bad - ie where these illegal immigrants came from.
And the more that leave France for the UK, without the French needing to pay to deport them, is probably a net benefit to France (ie the opposite of Zachery Smiths initial point).
‘Market will at least stabilise’
In your opinion - you make this sound like a fact. But it isn’t a fact. My opinion (but not a fact) is that the more that the RBNZ have to drop rates the more trouble the economy is in and the more downside pressure there will be on housing as businesses fail and jobs are lost.
Sure in my opinion, it is as valid as yours..... yes its not a fact and we cant see the future - dropping the OCR in my opinion is a good thing - i dont quite see your logic that a drop interest are going to make things worse - I would have through if OCR drop there will be more money in households and they can spend money in/on failing busisness' . Its my opinion as you rightly said
safeashouses: "Sure in my opinion, it is as valid as yours."
I_O writes plenty of well reasoned stuff that aligns with the bulk of my studies in economics, ergo their opinion is more valid than yours.
With regards ...
"I would have through if OCR drop there will be more money in households and they can spend money in/on failing busisness [sic]"
... this is pub-economics at its finest. It is a correct statement. But without quantification, it is wildly misleading and wrong. Jfoe points this out in many posts. In a nutshell, the trivial drops in the OCR will NOT be anywhere like enough to pull the good ship NZ Inc off the rocks.
@CON - well please enlighten me what will save the economy? And why have we not done it? I feel we on the right track. As per my simple mind two cuts of a percentage is a step in the right direction - at least I will have a few more bob to spend in the pub for my pub economics haha
Just back from Europe and It is now very expensive in most parts!
I can assure you that NZ is now going better than it was when the last lot were controlling!
NZ house prices are still cheap compared to what you get overSeas.
Auckland prices have dropped and will remain a bit weak for awhile compared to where they were, but there are other places such as ChCh where they are stable and are looking like they are increasing once again.
I don’t have to put a date on anything! And anyone who thinks they can is a fool.
Im guessing you picked the exact date of the top back in 21 as well and the subsequent falls given you always know exactly when the market turns - just as you know for sure that this is the bottom?
If one were to go back through the comments I guess I should be able to find you advising others that the top was in an few years ago and that we had a few years of price falls ahead of us? I think not, so I don’t know why anyone would give you any merit for calling this as the bottom.
You were right on the timing of the rate cuts, I will definitely give you that. I expect the market to rise a bit given the volume of sales that will occur over spring and summer, so yes, Christmas will give the illusion of a bottom, but it won’t be a floor and we will watch prices fall through it by the following winter.
Impressive? Only to you.
RVs are a complete 'thumb suck' as far as real value is concerned. And are way out of whack for many areas of the North Shore. And a sample set of just 28 isn't statistically that accurate unless adjusted for the mix of properties that sold. I could go on ...
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