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Fewer auctions in Auckland last week but higher numbers in the regions

Property / news
Fewer auctions in Auckland last week but higher numbers in the regions
Auction room

The residential auction rooms appear to be holding on to recent gains in activity with sales rates settling at just over 40%.

Interest.co.nz monitored the auctions of 428 residential properties over the week of 26 October to 1 November, which was the second week in a row auction numbers have been above 400 in a week.

Of the 428 properties on offer, 188 sold under the hammer, giving an overall sales rate of 44%.

The sales rate has hovered between 41% and 44% in all but two of the last 10 weeks, even as the number of properties being auctioned has risen considerably.

However auction activity settled back down in Auckland, with interest.co.nz monitoring 251 auctions in the region last week, after a surge to 341 the previous week.

The latest numbers suggest the previous week's surge in Auckland may have been a one-off.

However the drop in auction numbers in Auckland was offset by higher levels of activity in the regions, particularly in Waikato, Bay of Plenty, Gisborne and Canterbury.

The full regional results from the auctions monitored by interest.co.nz are shown in the table below.

Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices of those that sold under the hammer, are available on our Residential Auction Results page.

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12 Comments

44% is pretty good, not to long ago it was 34% 

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Alternate Onewoof headline:

"AUCTION SALES RATES SOAR BY NEARLY 30% IN A SINGLE WEEK AS BUYERS RETURN EN MASSE"

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Summer and another 75bps OCR cut will see it go even higher.

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And 43% above the RV. I have noticed values have gone up.

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Auckland auctions fall 26% MoM with only a 1/3 reaching CV, and only 43% selling.

Meanwhile Barfoot's have had the most listings in 20 years for Oct...

By the end Feb the market will have either bounced and cleared or cratered with record listings and low sales...

BONZAI - PLACE YOUR BETS

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By the end Feb the market will have either bounced and cleared or cratered with record listings and low sales...

Why exclude the possibility that it'll just linger on for longer?

There's political and media and kiwi culture and banks' interest to keep the bubble going on one hand and the reality of growing listings and unsustainable prices (despite banks' appraisals) on the other

They look pretty balanced to me and that it'll take an awful lot of time until the dam breaks. Honestly not holding my breath for February

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no one makes money that way, the underlying requirement for agents and participants is turnover = making money

 

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My bet on the latter.

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My ongoing analysis that calculates the gross annual percentage return, from the last sale price (but excludes obvious reno and extension work) to the latest sale price, suggests annual gains have risen very slightly. The 7.2% per annum gross return to justify the claim that "houses double every 10 years" remains as elusive as ever.

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A 7.2% annual growth rate needs to be underpinned by a 7.2% increase in purchasing power.  Very easy to do when society goes down the path of lowering mortgage rates from over 20% to 2%, increasing the loan term to 30 years, and normalizing dual income households.  

What's the growth rate since 2021 when interest rates bottom out, and have risen since? If we accept prices have dropped 20% since peak that's coincidentally a -7.2% growth rate.  

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And having dual income households cannot be culturally done again short of flatmates all chipping in on one house, which, although it happens, leaves risk for all kinds of trouble when one wants out.

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 Christchurch continues to perform very soundly considering how many say that the housing market prices have dropped over the past couple of years.

I am in the ChCh market  I can confirm that the prices have not dropped really in that time.

There have been some very good buys and a profitable time for many, as there have been many homes undersold due to less buyers around able to get finance due to the Banks high servicing rate.

Not talking about  the Auckland market as we all know it is overvalued, however there is no doubt in many areas the prices are only going to increase after the end of November.

 

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