There was a dip in activity at the latest auctions monitored by interest.co.nz.
We tracked 289 residential property auctions over the week of 5-11 October, down from 343 the previous week and 356 the week before that.
The drop in the number of properties being offered over the last two weeks was probably due to the school holidays, with many vendors and agents holding off until the holidays are over.
However numbers remained well up from where they were over winter and the sales rate also held on to recent gains, with 119 properties selling under the hammer, giving an overall sales rate of 41%.
So far the spring sales rate seems to be settling at just over 40%, compared to an average of around 30-33% over winter.
With the kids back at school this coming week and their parents back at work, we should see a pick up auction room activity as the market starts its run towards the end of the year.
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.
49 Comments
RVs were done at the peak of house prices, and prices have dropped 10-25% since then (depending on your city/region) .Therefore, if you are selling above RV, you are doing pretty well, or maybe have done major reno work which the council hasn't taken into consideration. If I was lookingat buying (which I'm not) then I would offer a minimum of 10% below RV, and definitely not over RV.
Anyone who thinks that the cost of building a house in NZ will decrease, needs to read today's Herald.
The article by Bruce Cotterill, entitled, "Orange cone mentality holding NZ back". It's all about the red tape mania in NZ.
E.G. Wayne Brown announced earlier this year that 40% of the cost of road repairs are related to traffic management expenses. And another example is an alteration to a building which is going to cost $500,000, of which $150,000 is "compliance and consulting fees".
Anyone bought a property lately? You've probably been asked to explain where you got the money from...the anti-money laundering BS.
Its been bad for years the anti money laundering BS. Basically you have to redo all that with the banks EVERY SIX MONTHS when you buy a house so it expires so fast basically you now have to do it every time you buy a house. Just crazy, doesn't matter if you have been with the same bank for 30 years. This was the case in late 2020 anyway, not sure if it has changed.
BS?
Speaking of 2020 -"...in 2020, Chinese interests alone laundered more than $1 billion through Australian real estate..."
And it isn't just in Aussie.
"5 ways criminals launder money through real estate"
https://www.firstaml.com/nz/resources/5-ways-criminals-launder-money-th…
It is the money launderers that are the enablers for the "real criminals". All the death, abuse, addiction, and destruction wrought is made possible by their accounting.
Without the money launderers all that drug money would be nothing more than petrol, groceries, and take out for fear of an easy pinch at IRD.
Weirdly money laundering caries a maximum sentence far below those they are enabling. As with other NZ sentencing multiple counts generally has a sentence served "concurrently". Hopefully this will change along with other "tough on crime" stances.
https://newsroom.co.nz/2024/03/19/police-confiscation-net-widens/
Last link not so relevant to my comment above but interesting all the same.
A recent example involving Auckland real estate and the Comancheros.
There was also a money-laundering phase, Operation Scuba, which police allege involved criminal profits being used to buy properties on behalf of the gang.
In addition ... Department of Internal Affairs said there was evidence NZ real estate was being increasingly used by criminals to launder large sums of illicit cash. In the financial year ending June 2021, 100 properties worth $73.7 million were seized by police. That was an increase from the previous year, when 51 properties totalling $55.7m were seized.
Apparently its not good enough these days for a simple building site delivery to just turn up and offload the truck. Nope, nowadays you have to shut the whole street down, place 100 road cones everywhere, set up a traffic detour, and then have several people in high vis vests stand on the road and supervise it all, and all this costs $10-$15k.
I don't know what this tells us about the market, if anything, but the house next door has sold after just one week on the market to first time buyers. The agent told us that her phone had been ringing almost non-stop and the key factor seems to have been that it has 4 beds. A similar property nearby with only 3 beds is attracting little interest. We live in Mount Maunganui.
I am in the market and nearly everything I have gone for is under contract or sold. The house in this listing came to market on wednesday the 9th and already has sold on it. It's getting a bit frustrating.
https://www.trademe.co.nz/a/property/residential/sale/listing/495825163…
Must be time for everyone to start panic buying again and go back to living their lives in a constant state of fear (FOMO) which is an incredibly unhealthy emotional state to live one’s life (it ruins your nervous system and it f%#}s peoples ability to live cooperatively with others both in families and societies) in and yet that appears to be what the property bulls want others to experience for their own financial gain.
The narrative of comments like the above is emotive in nature with the intention to cause FOMO.
Everyone rush out and buy a house now because if you don’t you will never again be able to afford one - it’s your last chance! Panic panic panic! The end is near. You can’t take your time…
This example came to market asking mid 400s, now changed to high 400s. Obviously there is a change in the air.
https://www.trademe.co.nz/a/property/residential/sale/listing/494856851…
Linklater01, I think it's fair to say the market lacks the qualified and confident buyers in sufficient numbers to deliver enough sales volume and eventually the lift. We saw the same thing happen with a tastefully renovated house across from us. Last July, it settled for nearly $280K over RV! Over the years the owners had spent heaps and pretty much gutted it. There were two buyers, neither were prepared to give in.
The buyers are certainly out there for properties that tick the right boxes. Others by majority are further bloating the unsold inventory.
Nothing but SOLD signs in Tauranga, if it has not got sold on it then its coming up for auction. Like I said a week ago the market will turn on a dime. If we get another 50bps cut in November, my prediction of 3 to 4% annual gains down here by Christmas is likely to pan out.
Under contract may still imply that many properties are in a train where none can go unconditional until the first in the train sells their property. October must be the busiest month of the year as people want to be in by xmas. The actual volumes sold and prices paid will tell all in time.
Nothing but SOLD signs in Tauranga, if it has not got sold on it then its coming up for auction. Like I said a week ago the market will turn on a dime. If we get another 50bps cut in November, my prediction of 3 to 4% annual gains down here by Christmas is likely to pan out.
I'm leaving this here in case you delete it when you are inevitably wrong, Zwifter.
From this morning's Weekend Briefing on here - "The UST 30yr bond auction yesterday was again well supported, delivering a median yield of 4.32%. That was up from 3.95% at the prior equivalent event a month ago."
"The last "real recession"--the organic contraction of credit and risk-taking that drains the excesses from the economy and financial system over the course of several years--occurred 43 years ago in 1981-82.... Interest rate cycles are multi-year affairs, generally running between 15 and 40 years. The current cycle--from 1981 to the present--is extremely long in tooth....The net result of moral hazard is that the excesses of risk and debt are rewarded and expand to even more precarious heights, ensuring that the eventual downturn will be far more destructive than had the system been allowed to fully re-set in 2000-02 and again in 2008-09.... Central Banks' favourite trick to put off the credit cycle; lowering interest rates, is slipping out of reach.... Nothing lasts forever, regardless of what policy is applied. Interest rates are rising and will continue to rise...."
Good comment. Owing to climate, geopolitical tension and sovereign debt risk, it's looking more like inflation and therefore interest rates are heading up again. It's a warning sign in itself that many here are popping the corks already while ignoring what's going on overseas. Self serving can easily lead to blindness while risks continue to build.
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