Barfoot & Thompson achieved an overall sales rate of 39% at last week's auctions.
The agency marketed 145 properties for sale by auction and sold 57 of them, with most of the remaining 88 being passed in for sale by negotiation.
The biggest auction of the week was at Manukau where 40 properties were scheduled for auction and sales were achieved on eight, giving a clearance rate of 20%.
The next biggest was on the North Shore where the clearance rate was just under 50%, while the sales clearance rates at the auctions held at Barfoot's city offices on Shortland Street ranged from 38% to 100% (see table below).
Details of the individual properties offered and the prices achieved on those that sold are available on our Residential Auction Results page.
Date | Venue | Sold | Not Sold | Total | % Sold |
12-18 February | On site | 4 | 2 | 6 | 67% |
13 February | Manukau | 8 | 32 | 40 | 20% |
13 February | Shortland St, CBD. | 5 | 5 | 10 | 50% |
14 February | Shortland St (Mortgagee/High Court) | 2 | 0 | 2 | 100% |
14 February | Shortland St, CBD. | 10 | 15 | 25 | 40% |
14 February | Pukekohe | 1 | 4 | 5 | 20% |
15 February | Shortland St, CBD. | 6 | 5 | 11 | 55% |
15 February | North Shore | 15 | 16 | 31 | 48% |
15 February | Kerikeri | 1 | 1 | 2 | 50% |
16 February | Shortland St, CBD | 5 | 8 | 13 | 38% |
Total | All venues | 57 | 88 | 145 | 39% |
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44 Comments
Looking at the prices, they have generally stayed in line with current CV. However, it is a very low success rate and I suspect a tactic by agents to condition the vendors.
What has also changed is the amount of commentary suggesting that prices will decline. I suspect that the 88 properties that did not sell and being forced to look at lower prices.
theglc,
Not sure if we're comparing like for like, but REINZ Jan 2018 report stated that Auckland had 8,679 properties available for sale. If that is like for like, then that is a significant 51% increase. That would also mean that inventory for Auckland would be up significantly to about 31 weeks compared to 20 weeks at the end of January as shown in the chart link below.
https://www.interest.co.nz/property/91521/listings-slump-december-askin…
The end is nigh for property owners.
A 39% clearance rate when factored into Poothagoras's thereom (the brother of Pythagoras) results in an impending devaluation of 105%. Based on these numbers vendors should be paying between $30,000 to $50,000 to buyers in order to offload their Auckland properties.
The Fed Reserve has confirmed these numbers with the Chair, Jerome Powell, having 3 eggs for breakfast rather than his usual 2 eggs yesterday morning.
I predict anyone who does not own a property, and has been crying on this site for the last 10 years about that, will have 3 Auckland properties and $100k in the bank by the end of March.
Looks like meats back on the menu boys!
As the sale price is negative (or in industry terms a "reverse sale price") there should be a contribution made by the real estate agent to the vendor on sale. This business model is similar to that adopted by Lehman Brothers and should see real estate agents have stellar returns in the never to never range.
But as buyers are aware that houses will be given away in the short to immediate term sales are unlikley. Furthermore, sellers will need to liquidate assets in order to have the necesssary funds to pay reverse purchase prices to potential purchasers (maybe they should be called receivers or donees rather than purchasers?).
Question is though, now that you've found love, what are you going to do with it? https://www.youtube.com/watch?v=NNEgUPKxk7A
Talking of which I just popped Mortgagee into Trademe and found this doozy -
https://www.trademe.co.nz/property/residential-property-for-sale/auctio…
If I'm reading these numbers right and the information is correct - https://homes.co.nz/app/address/auckland/swanson/43-candia-road/9lB8Q
It was bought on the 22nd September 2015 for $1.2m, then 7 days later, 29th of September 2015 sold for $4.89m!!!! Apologies about the excessive use of exclamations there but holy sh@tballs!
What's the history there then?
But marked as a S12 sale on homes.co.nz .ie. Single title, freehold, Bona Fide open market transaction. Should be a S13 or one of the other classifications if it was a related party transaction.
https://deskportal.zoho.com/portal/homesconz/kb/articles/what-is-a-non-…
That looks like mortgage fraud to me. If you're a foreigner here, set up two companies. Buy 1 property, with 1 company, then sell it for 3 times the price to another company. Then leave the country with a couple of million, and the bank carrying the can. There's quite a bit of this to come out of the woodwork yet I think.
For your Info:
NZ'S HOUSING-RELATED IMBALANCES SET TO PEAK IN 2018, S&P GLOBAL SAYS
"In 2018, we see the recent slowdown in credit growth steadying and house price inflation consolidating around current levels from recent cyclical lows in late 2017, as some headwinds of the last 18 months abate. Thereafter, we expect relatively measured house price and credit growth," he added.
Mayes noted that while the Real Estate Institute's house price index - which adjusts for market composition changes - ended 2017 higher at just under 4 percent, volumes were down for much of the year while housing stock on the market was higher. He also said that growth in investor and interest loans remain down by around 25 percent and 20 percent year on year.
"We see 2018 as continuing a theme of modest house price growth on similarly modest volumes," he said.
http://www.sharechat.co.nz/article/5b0a3319/nz-s-housing-related-imbala…
Banks have always been reluctant to do bridging finance. They would rather lend you the money to buy a new house and keep the old one as a rental. That was my experience anyway, even in the good times. They would ask you to go to a third party for bridging finance enquiries.
As was suggested late last year – this is what a market adjustment looks like.
No real drama – for most still lots of capital gain in there – no seller wants to give it away in a hurry, and for most right now I would suggest there is no real hurry.
Interest rates though may play more a part this year than previous – and they can be somewhat unforgiving.
The up coming 5 year bright line test will make things much worse.
Remaining investors will stay away forcing prices down and forcing rents up.
FBB’s will be reluctant to buy in a flat market.
Watch the rent squeeze choke the life out of the market.
unintended consequences yet again .
So you're saying that landlords were only in it for the capital gain?
If I were a landlord, I'd be looking at the following scenario - I probably have an interest only loan about to expire, capital gains aren't looking so hot, there's regulations coming in about healthy homes which will be a significant burden, closing of the negative gearing loophole - I can't pass all of those costs onto tenants as they will just walk.
Now do I a) suck up and pay a tax on the profit I've made over the past couple of years or b) watch my investment fall in value, start paying P&I mortgage, have to pay to actually provide a house that is suitable, and also continue to make losses that I can no longer offset.
I'm no maths genius, but one situation looks a wee bit worse than the other.
Bigdaddy's outlook appears to be more of a short term speculator than that of a professional landlord.
Silly thing is if you made 20% per annum plus over the last few years for no effort paying tax doesnt seem that bad, guess its the symptom of this sector, pure greed.
Thats a comedic effort. The unintended consequences of house prices falling, as opposed to the unintended consequences of house prices increasing.
I think rents will drop when house are affordable for average buyer as more people can afford to buy and not rent. Why rent when you can buy your own home.
The up coming 5 year bright line test will make things much worse.
Remaining investors will stay away forcing prices down and forcing rents up.
FBB’s will be reluctant to buy in a flat market.
Watch the rent squeeze choke the life out of the market.
unintended consequences yet again .
I dont agree here (worse for anyone but the gamblers), but on the effect, yes I hope you are right.
Lets see why I think why.
a) If prices stagnate (if its that benign) as the gamblers / speculators leave that is good. Reducing buying demand makes houses more affordable for FHBers who primarily want a home and not a capital profit. Now if prices drop and look to keep dropping, yes FHBers will wait but that is then a balancing act v rents going up.
b) Forcing rents up? not really as again as FHBers buy there is less rental demand from them. So really this strikes me as NET neutral effect.
I dont follow your comment "Watch the rent squeeze choke the life out of the market." if that's choking out the gamblers, yes I very much hope so.
I dont see these as un-intended it should be pretty clear this is the effect that is being hoped for.
Rents aren't going to go up significantly(at least in the Old Auckland City region) until wages go up. Lots of people are struggling as it is, if landlords start ratcheting up rents there will just be a move to more occupants per house, couples will get in a boarder/homestay student in the spare room to supplement the rent instead of living alone, extended families will clump together in a one bigger house.
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