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Auction sales rate declined to 35% from 44% over the last four weeks as buyers pick and choose

Property / news
Auction sales rate declined to 35% from 44% over the last four weeks as buyers pick and choose
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There was a big jump in residential auction activity over the week of 16-22 November, with interest.co.nz monitoring the auctions of 517 properties around the country.

That was up 14% compared to the previous week, and was the first time the number of properties on offer has exceeded 500 since the summer peak in mid-late March.

However, the increase in the number of properties going under the hammer was not matched by the number of properties being sold under the hammer, which increased from 175 to 182.

That pushed the overall sales rate down to 35% from 39% the previous week.

It was also the fourth week in a row the sales rate has declined since it peaked at 44% at the end of October.

The higher number of properties being offered and the lower sales rate reflects the overall market, which is overstocked, meaning buyers can be choosey and strike a hard bargain on price.

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.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

42 Comments

It’s a roller coaster out there….happy that NZ inc have finally started building more homes. Waitākere is still doing well - 

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So the hot, summer siźling, market peak was last month in October.......well that's spring......the NZ HOUSING MARKET IS ENTERING THE NEXT LOWER STEP OF ITS OWN, CHINESE STYLE, GARBAGE TIME.

 

For this supposed housing market recovery to have 1/3 sold by the REA SPRUIKED hammer  throwdown.......and a measerly 10% or so matching CV...... the NZ MARKET IS DEAD AS A MOA.

 

The pricing expectation will need to adjust downwards in a BIG way to clear this overburden and glut of flood prone town houses and stale dated boomer, retirement funding pads.

The California dreamin, green shoots asmokin, high prices asked, in many cases is so far out on a spindly tree limb, the only way these will sell, is when a Berry fattened and drunk Wood Pigeon makes an ill fated landing and breaks the mofo to the ground........

 

Call that real world, Pigeon housing economics!

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@nz gecko - morning and good to have you back as always enjoy your messages - they crack me up - wood pigeon comment is your best work yet - 

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The housing market is in the dumps.. anyone wanting to pick up one needs to have prior training in garbage collection 

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@ nz gecko - interest.com should make a glossary with all you wise cracks and turn it into a book for the coffee table - I definitely would buy it 😀

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Good to be back SAH.

Trust your holding on ok? and have other investments/jobs that are keeping the ever hungry wolves from door?

Good idea! I could use the funds from a forth job, helping the good Interst Team with a few moments of Geckofun.  Whoever said Geckos were boring, slothlike,  fly gorging,  tree freeloading creatures?

 

I'm back just to wish TTP well, in his latest, in vain, spruikerthon, trying to reanimate the housing ponzi, that's in its late stages death rattle.

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@NZGeko - I am doing Ok - yes having a job is certainly a good thing- will do allot better when interest drops to 5% whole sale - its been a rough 4 years -  however my feet are taped to the property investment bike - its not been easy - however everything considered i would still have done it.  However anyone who enters the world of property investment get good advice  (it is possible to make money) - its not easy.  GEKOFUN love it (4th job) where do you get all this stuff.   Go well and do me a favour give us old spruikers a rest over the Xmas period hahahah

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Problem is most his comments are just variants of the same thing.  Despite the number of comments he makes, you could summarize into a single laminated A6 sheet.  

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Fair go NZD......I speck from a Geckos perspective and it is really varying. 

The dominant overlords of my forest patch, need to reign in their speculation and excesses. 
You can only charge so much for a tree perch and the inflation adjusted cost of forest living is high. The lovely jubly, tasty flies and forest bugs, has me watching my dietary intake at the leaf litter shop checkout. 

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Laminated, that's quite subtle NZdan. I suspect that went over NZGeckos head.

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I'm just a humble Gecko.  

I'm nothing,  compared to the intelligencer on roids, master spruiker, overlord class of Zwiffy.....

Let's refrain from poking holes in our precious NZ wildlife and get back onto your favorite topics of the awfully bad selling results of the NZ housing Ponzi:)

This market overhang and heavily pregnant list of properties for sale,  is but a beleaguered Dam, waiting for the expendable souls to venture close enough, to trip it and send it crashing into the valley, far below.

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NZ Dan could well have been making a comment about his own commentaries!

Good on you Gecko! Nice to see a commenter with no ego.

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Went to an auction to support first home buyers.

Talk about full bore pressure. They were successful. At every turn the agents were pressuring to increase the offer. We helped them get it under RV in line with recent area sales. Not easy. 

FHBers are being penalised. This market is unsustainable. It’s out of balance.
 

There should be some duty of care in the industry.
 

Their hunger for dollars is harming future generations. 

 

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Remember the agent works for the seller not the buyer ,when we all sell we want the best price in whatever market you are selling in.its call capitalism which seems the only system that works even thou it isn't perfect but effective.

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@timutei - I think the world need more people like you - I think when wealth tax kick in and CGT - more first home buyers will need your skills 

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Greed mate Greed.. both from agents and speculators...

Hopefully this time around they will get burnt

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As expected, this top heavy market, at best, is going nowhere. It appears the presence of a sustainable floor to clear the bloated inventory is proving elusive. With joblessness still rising, it's entirely understandable the diehard Spruikers are now anxious about where prices are headed next winter. or worse, post some random global shock. It always was simplistic to believe that cheaper money alone would repair the market in a jiffy. With the backdrop of a skyrocketing cost of living, upward momentum is lost, there is little to fuel it and despite falls to date, prices remain unaffordable. 

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As expected. 

Didn't you expect a great big crash this year?

So now the "expectation" is that house prices won't shoot to the stratosphere anytime soon. That's kind of an easy one, because very few people expected that.

Until we resolve new housing supply, housing affordability is going to be a constant issue. While the populace gravitates towards division and Boogeymen (spruikers/landlords, boomers, the supermarkets, employers), the masses will gather no meaningful progress.

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@painter - great comment 

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Much compared to the 70s, adjusted for inflation, it can be argued that prices have crashed. Weren't you the one that said quote "FHB's have a Death Star" trench opportunity to conquer the housing market? Yes, I recall it was....

Cue more reckons...

Great comment safeashouses😂🤣

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Much compared to the 70s, adjusted for inflation, it can be argued that prices have crashed.

Is this in line with your prophesies of 2023 and early 2024? And has the rising inflation negated the subdued pricing for home owners, or prospective buyers (i.e. have rising CPI prices killed off any real savings?)?

"FHB's have a Death Star" trench opportunity to conquer the housing market? Yes, I recall it was....

And that's exactly what it's turning out to be. A small sliver in time where prices, interest rates, and employment market health offer greater than typical conditions in FHBs favour.

As opposed to the paradigm shifting Perma crash being promoted on here.

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You've obviously spent several restless nights putting all that together - well done 😂

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You're giving too much credit to the energy required to dispell much of your claims.

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I think you've become consumed. You could have easily read my post, or not, then simply moved on.....😂🤣

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One of us is definitely consumed. Years of the same theme, with an ever changing interpretation as old punts are dispelled.

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@ painter - you are on fire 🔥 today - good work

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😂🤣😆

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Waylon Smithers vibes.

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RFNS.. (Regret For Not Selling) will kick in by next winter..

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Don't worry, Orr is on his way...

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Are you sure on the Orr?

Or will he lash out at the burgeoning inflation expectations and permutations and hole your already wet bilged waka?

Hope he does not have you paddling up the lonely landlords shist creek?

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@Nifty - or is on his way i would agree - and believe it of nor its not my vested interest that make me say this - manufacturing is suffering layoffs up to 25% of staff - mills into liqudation - pie shops shutting down - 0.75 is the only way to give people some sort of hope to keep the doors open and keeping Kiwis in NZ

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Agree about the grim business climate in NZ.

All but a few industries will be downsizing, I fear.

Now the humanity of it!!   A great pie shop is closing down in NZ  (in the land full of pie worshipers!)
This is the dead canary, that all thought would be ironclad. This should have us all worried!!

 

But if the ORR gets stuck into big rate cuts.......inflation will just zoom up, as all imports/energy prices rage higher.

 

Let's pray he knows what Golden Veined Creek to paddle the junkstyle NZ rusty trawler up?????  

I see the easy get gold, so to speak, is already got within NZ.......so no easy way out of the economic Dodge city doldrums...... without taking a few bullets.

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But if the ORR gets stuck into big rate cuts.......inflation will just zoom up

Is that what happened when rates were dropped and kept dropping through the 2010s?

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The NZ economy was crawling through the mined ground and barbwire of the economic collapse, post GFC, IN THE EARLY 2010S!

Some seem to have learned very little from their excessive greed, binging, AND HOUSING SPECKU-SRUIKULATION leading upto the 2008 GFC.

 

So, some of us humans...... repeat the same stupid!

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Most of us repeat the same stupid.

Hammering out endless, caps riddled, thunderbolts and lightning posts.

Or trying to reason with the above.

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@ painter - another good comment I bought a house in 2011 interest rates was 3.99 inflation was under control and everything was babbling along (exodus of kiwis to AU) till about 2014/2015 when NZ hit rock star - there is similarities - time heals all 

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Winding down now for Christmas, you really wouldn't want to be trying to push the legal stuff through before years end, its stressful enough as it is. Big OCR announcement on Wednesday this week, its going to be critical for sentiment going forward over summer.

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@zwifter right you are …… 0.75 …. For the love of pies and for everyone who still has a job 

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The Pies are Toast.  Sad.

This economy needs retail mortgage rates of 3.5% to have any dead ponzi/commercial business resuscitation success. 
Soz.....not happening soon or soon enough.

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Home prices are down 20% from their peak, and the NZD has dropped 20% against the USD since November 2021, sliding from 0.71 to 0.58. It’s proving to be a poor store of value relative to the USD, and the crash isn’t over yet.

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I would say the crash is just starting..

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