Barfoot & Thompson had an overall sales rate of 28% at the agency's auctions last week.
Barfoot marketed 157 properties for sale by auction and achieved sales on 44 of those, with the remaining 113 mostly passed in for sale by negotiation, with a few having their auction dates postponed.
The highest sales rate at the main auctions was at the North Shore auction on May 3 where 25 properties had been marketed for sale on the day and 10 were sold, giving a sales clearance rate of 40%.
At the Manukau auction on May 1 where 28 properties were scheduled for auction, sales were achieved on six, giving a sales clearance rate of 21%.
The biggest auction of the week was in Barfoot's Shortland Street rooms on May 2 where 41 properties were scheduled for sale, mostly from central Auckland suburbs such as Remuera, St Heliers, Epsom, and Mt Eden, with sales achieved on 12 of them, giving a sales clearance rate of 29%.
The lowest sales rate for the week was at the Pukekohe auction, where 11 properties were scheduled for sale and sales achieved on just one of them, giving a clearance rate of 9%.
The chart below summarises the results of all of Barfoot & Thompson's auctions last week.
Details of the individual properties offered and the prices achieved on most of those that sold, are available on our Residential Auction Results page.
| Date | Vanue | Sold | Not sold | Total | % Sold |
| 30 April - 6 May | On-site | 5 | 13 | 18 | 28% |
| 1 May | Manukau | 6 | 22 | 28 | 21% |
| 1 May | Shortland St, CBD. | 1 | 4 | 5 | 20% |
| 2 May | Shortland St - Mortgagee/High Court | 1 | - | 1 | 100% |
| 2 May | Whangarei | 1 | 1 | 2 | 50% |
| 2 May | Shortland St, CBD. | 12 | 29 | 41 | 29% |
| 2 May | Pukekohe | 1 | 10 | 11 | 9% |
| 3 May | North Shore | 10 | 15 | 25 | 40% |
| 3 May | Shortland St, CBD. | 2 | 8 | 10 | 20% |
| 4 May | Shortland St, CBD | 5 | 11 | 16 | 31% |
| Total | All venues | 44 | 113 | 157 | 28% |
138 Comments
Peter Barfoots commentary 03-May "Signs Auckland's housing hibernation is coming to an end". TTP, this must mean he recognises that your oscillation faze has now ended. No doubt soon he will report that your "small price falls" are now also occurring.
Auctions are quote "so yesterday" and whatever does sell afterwards by negotiation is priced quite different to the vendors original expectations........
I assume they count the sales negotiated with the highest bidder after the auction closes - as being successfully sold at auction? We bought one like that recently in the Hutt Valley at a price that was (according to the agent) $40K lower than the vendor's expectation (and I assume the auction reserve). I'm not sure it was a successful auction from the vendor's perspective.
I think that auctions being the favoured way to market a property will slowly fade, and we'll head back to a lot more price marketing and sales with offers conditional on the sale of another property.
"I think that auctions being the favoured way to market a property will slowly fade, and we'll head back to a lot more price marketing and sales with offers conditional on the sale of another property."
That's been happening for the last 12 months. Auctions are pretty deja-vu these days.
Auctions are no longer where the action is.
TTP
Hi RickStrauss,
déjà vu, as in Mr TTP has already seen the results in his crystal ball. The market will power up come the spring listing season, Ron Hoy Fong QSM assures me of this. I only need to find some elderly folk to buy off and use my parents house as collateral.
MTP
I agree totally with you Kate.
Selling by auction when there is only a 30% success is not good for vendors expecttions.
They have probably already been conditioned by the agent (who is desperate to get a sale commission) and to watch the property fall short of their minimum expectation, and then both dejected by the low offer(s) and knowing the considerable outlay they have already made for advertising etc, to be further conditioned by the agent to accept an even lower price than what they thought their reserve was to be their absolute bottom price.
Unfortunately no stats on how many properties passed their reserve; I suggest that of the 30% that did sell, a majority of those sold did not reach their reserve (possibly only 10 to 15% of properties on the hammer without further negiotation).
A sad situation for vendor expectations.
Glancing through the sale prices and comparing them to Rateable Value shows some significant discounts. Certainly some about RV, but a majority under and some as much at $100k under. I think, combined with the low success rate, it suggests more caution than a couple of months ago.
Yet another convenient flip flop from our resident Real Estate Agent. TTPs only now admitting it all comes down to timing. Previously for FHB's he commented "it's always the right time to buy your dream home". FHBs should ignore his frequent promotions as he has limited understanding of the background forces in play. Our Governments legislative changes (i.e ring fencing) have yet to take effect so barring a financial shock, continued weakness is now the new normal.
Hi Retired-Poppy,
If you can buy a house in a quiet market - avoiding pressure - then all the better.
You ought to be able to work that out for yourself. (It's not rocket science.)
By the way, FHBs are particularly active in the housing market right now. Wisely, they have rejected Retired-Poppy's advice.
TTP
TTP I have to disagree that there is sufficient evidence to now being the best time to buy.
I think unless you happen to come across a seller who will negotiate down to a great price, then there is every reason to wait a bit longer.
I think there are some helpful indicators for when a market starts heating up again, and I would look for those before I felt any pressure to buy. ToM reducing, sales volumes increasing (being mindful of seasonality) and price movement indicators. So at the moment, in most urban areas the price growth rate is slowing and in many areas the YoY prices have fallen (with that appearing somewhat contagious).
Hi Gingerninja,
We've had this discussion before.
If you can buy a house at a discounted price close to the city in Wellington in xxx months or years time, then I'll be genuinely happy for you. But I wouldn't bank on it, because Wellington's a relatively stable market that doesn't tend to fall in price.
Good luck anyway!
TTP
TTP, when did I mention Wellington? These auction results are for Auckland and I was referring to that.
Wellington is noway near as potentially overpriced and has only had 2 years of any price inflation really. It's far less likely to lose value. Although wherever you are, a cooler market will always give a buyer a better opportunity to negotiate on price ;-)
FHBs should note.
Auctions are the best way of determining price when there is price uncertainty as auctions have considerable additional costs for vendors.
It is worthwhile for vendors to go to auction and accept the additional costs because either the market is a booming with lots of competing buyers and shortage of houses, or the market is in decline and there is a need to sell but there are lots of houses and few buyers.
It would seem that clearance rates having gone from around the 80% to 30% suggests that we are now in the later case; lots of houses and few competing buyers to drive bids up.
For 70% of vendors who have gone to auction, they have not got their reserve (read minimum price).
In short; a clearance rate of only 30% indicates vendors are not getting their minimal reserve price and clearly this is putting downward pressure on price expectations.
So FHB, do consider buying if you are in for the long term, but take your time to find the right house to meet your expectations and remember that 70% of vendors are not getting their reserve/minimum price so the ball is in your court to negotiate hard.
Sixty-seven per cent of Aucklanders surveyed by the Property Institute think prices will fall or stagnate in the next six months (not that their press release, regurgitated by the NZ Herald made that clear). https://www.noted.co.nz/money/property/auckland-house-prices-end-of-the…
I sold my house via auction but price I got was about 70-100 K less than than what would have been expected at the peak in 2016. I am relocating to Hamilton due a better to job offer. I am a bit surprised that situation in Hamilton seems different and houses are selling quickly. I am planning to rent initially to see if things slow down .
It that the same Sydney that SQM just downgraded the price forecast from +4-+8% to 0 to -4%. Nasty. Sydney does have one good thing going for it this weekend.. Whiskey Live.. old and rare whiskeys, and on my birthday too, this may slow down my house buying plans more than any smashed avo ever will. lol
You always make your money capital wise, when you buy!
Auctions are always where I have bought well in Christchurch!
Motivated vendors who,have paid for marketing and need to get a result!
Now would be a great time to be buying in Auckland I would say if you know what you are doing!
There are opportunities in every market and if you keep your head in the sand and just go on and on about how things are going to get worse, you will miss the opportunities that occur.
That is one of the reasons that many of you need to keep moaning as you have not invested wisely and therefore are very jealous of the people who have!
Not self entitled at all Blue.
The site is designed to help people make financial decisions I thought!
What I point out is that if you are prepared to listen to people who have been financially successful, then you can be as well.
To listen to the doom and gloom brigade is not the way you should be doing it!
If you have been then you will not have become very successful financially.
In Pakuranga heights, stand alone with CV of $1050000 going for early to mid 800s. Appox 20% discont to CV.
18 BALLYDONEGAN RISE in Dannemora went for 850 with a cv of 960 and as per homes.co.nz should be a million dollar near around.
Houses are going 10% to 30% below CV - Current norm.
You getting itchy feet TTP, DGZ need to sell and lock in those gains before the drop, and the looooooong plateau.
No more foreign buyers, no more Chinese money, reduced immigration, no ring fencing losses, extended bright line, interest rates increases in the future, stricter lending from banks.
Get in now, don't lose thousands of dollars you could have for your next investment, when the prices are ripe again.
Here's your evidence LOL!!
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
We even have our own Night Market starting tomorrow LOL!!
http://aucklandnightmarkets.co.nz/locations/
Definitely hope to see you there tomorrow night! It's our first Night Market and I'm expecting a good bunch of well known local RE agents trying to "expand their businesses" there. Not long before "Night Market" can be used as a reason for premium house prices in DGZ LOL!!
Hi CJ099,
I see in the media today that Remuera is in the running to be the first suburb in Auckland (and NZ) to reach an average price of $3,000,000.
But there are several other suburbs in the running, including illustrious Herne Bay. Should be an interesting contest.......
I expect the winning suburb will be known far sooner than the DGM would dare believe........
TTP
Thanks TTP. You have hit the nail on the head. I'm looking forward to see the sale of 298 Remuera Rd soon (CV $19,500,000)
https://www.oneroof.co.nz/298-remuera-road-auckland-1063098
Here are the results of my "analysis"
39 fairly standard Auckland houses were listed as sold in the auction results pages for May 2018. Really just the first week of May.
45.209M sold with a 2017 RV of 43.550M and a 2014 RV of 30.555M
That's 3.8% above 2017 RV and a wopping 47.96% above 2014 RV.
24 sold above 2017 RV
14 under and one for the same value.
These results are remarkably similar to my last analysis.
Conclusion: No change, no crash, nothing desperate here.
It should be noted that theses sales are typically the best prices as houses sold under the hammer or soon afterward. The buyers really wanted them.
The highest above RV was 305k and below was -140k
I could have made mistakes however I tried to be as accurate as possible.
Notable sales. A two beddie in Herne Bay that went for 1.3M, 25% above RV and 73% above 2014 RV.
https://www.barfoot.co.nz/756167
And a real bargain. This is what FHBs should be looking for:
https://www.barfoot.co.nz/755789
Sold for 650k, 2017 RV of 790k and 2014 RV of 570k.
A do-up. This home should have been tidied up, re-carpeted and staged to fetch at least an extra 100k.
The current market is not treating do-ups kindly. Bargains to be had for the astute buyer.
"Sold for 650k, 2017 RV of 790k and 2014 RV of 570k.
A do-up. This home should have been tidied up, re-carpeted and staged to fetch at least an extra 100k."
Zachary you must do pretty well, should be able to afford lots of crates.
$100K bit of carpeting, easy money. I've seen you say this for a few properties, lets say you have said that for 10 properties in a year, surely you must be creaming 1 mill a year easy. Congratulations. If this is true maybe I will copy you.
I don't think it would be "easy money" for an investor due to commission and tax considerations however for the seller an extra investment of 50k would likely have returned 100k giving a 100% return on that 50. Not often you get that opportunity.
For a FHB the house as is would be a good buy for that money. Get mum and dad to gift a new carpet and get out the paint brushes - this happened to me.
But you have said many times that at least 100k can be earn't on a few you have posted, I assume that there are many more like that, so if you do your work that you say, then you would make some money. If you have assets, you can borrow and make that 100K easy. If you have all those costs, then maybe not 1 million a year, 500K a year still nice living. Still happy to follow the trend, if it is that easy.
As for the FHB, they still have huge issues as houses are more unaffordable then when I was young probaly 10 -15 times income instead of 4 times income and if houses keep going up at the rate they have been then FHB will be a dying breed and we will only be a nation of renters. Its a great legacy we will leave behind once we are gone. There will be books on how we ruined NZ for the generations behind us.
If a couple were each earning 75k then that house would be less than 4.5 times their combined income. A second job for one of them (in my case it was heaps of OT) then that figure is reduced further.
Sure incomes have eroded, my contract gives me double time for OT which is rare now, but that's not the house's fault.
Not sure how many couples I know on 75K each. Most people I know have children and single incomes, with the odd person doing part time work. I have 2 friends one earns over a mill and another over 500K and a few who do very very well. But that's beside the point.
In general that's a 150K a year income per household. Not sure there are that many out there with that. And to be frank that's pretty poor if that's the way we want our nation to go. If it continues at this rate you will need household income of 200-300K with the kids being sent out to earn there keep as well. Lets not have mothers at home looking after children, kids getting better educated and a loving family, lets just blow house prices out of the water so future generations are writing books about greedy past generations ruining their future.
Swapacrate, the life you seek could be found in Masterton although house prices there have appreciated by over 16% in the last year.
Although Auckland average household income is over 120k:
https://www.stuff.co.nz/business/98016625/auckland-tops-income-table-as…
My viewpoint is that you have to accept that we are living in the Kali Yuga and a man has to make a living in the ruins of Auckland as best he can. It would take an enormous collective effort and will to rebuild society in the image you dream of but it is just not possible and would be foolhardy considering the spirit of these times.
On the contrary TTP Im really happy that house prices are stalling and auctions are falling over, I have a real positive outlook that house prices could become affordable one day, just need interest rates to turn, immigration to drop, lending to tighten. Then who knows our future generations may be able to afford a home. Happy days.
Yeah and refers to 2014 CV to try to show a significant capital gain. Stick to the facts Zachary/DGZ use current data stop trying to disguise what really happening in a desperate attempt to get FTB's to get saddled with a massive mortgage.
So Boomers like you can retire on a false economy. By the way you should have sold in late 2016 to early 2017 if you wanted to get maximum CV. Ooops too late!
I see the alzheimer's has set in then. Next Zachary will be babbling again about he use to fix type writers before the modern computer age.
By the way you should let your buddy Zachary Smith know that times have changed, even his name sake/role model is now a woman. http://ew.com/tv/2018/04/13/lost-in-space-parker-posey/
Can't stop progress. :)
Well yes 'they' do, come to think of it. Though mostly around crime drama rather than sci fi unless you count; Wonder Woman, Alice in Resident Evil, Ripley in Alien, Elizabeth Shaw in Prometheus, Admiral Kathryn Janeway in Start Trek, Ava in Ex Machina, Dana Scully in The X-Files, Katniss Everdeen in Hunger Games, Sarah Connor in Terminator and the list goes on...
Anyway the new Lost in Space tv series is a lot better then the 1950's Lost in Space with wobbly cardboard sets and even dull plot lines. The effects are worthy of any feature film, so are the sets, good cast of actors and interesting story lines. Worth a watch even just to see then new super cool robot. :)
I am watching for the fall and will report it if I see it. I thought today's results would show this as my first 16 houses revealed total sales slightly below 2017 RV however the prices rallied with the remaining 23 sales.
I do think do-ups have fallen significantly and have reported this.
Yes, indeed - watch out for Retired-Poppy's onslaught tomorrow morning.
And remember, the more he's wrong (and guilty of misleading people) the louder and angrier he becomes.
If nothing else, Retired-Poppy's mood is predictable!
And don't say I didn't warn you.
TTP
See thats typical TTP you play the man/woman with RP and others
You remind me of #putinbots, that spread misinformation. No actual facts, just misinformation, muddying the waters calling people DGMs if the facts they provide don't fit your narrative. You should be a multi millionaire sunning yourself in Europe if you actually invested in what you talk about.
https://www.washingtonpost.com/world/europe/pro-putin-politics-bots-are…
Facts are Auctions have reduced from 80-100% clearance to 30-40%. People are not meeting sellers minimum.
Opinion: Sellers need to sell quickly at whatever price they can get, before all their gains are lost, and the loooong plateau sets in.
I'd say his analysis is correct based on the data set, however the data set only covers 28% of houses that went to auction. The majority of houses that go to auction are failing to sell at auction.
Quite a small range of feedback to make an informed decision on the state of the market at the moment, i'd be taking a closer look at the houses that failed to sell i think that will paint a better picture of the market as a whole. Would be nice to know what the highest bids for the properties that failed to sell are.
Thanks for the analysis ZS. I got bored half way through the process - and it is data that is important. What I did see from the sixteen I put into a spreadsheet before I got bored was that properties below $1m had dropped by around 3-4%, while properties above $1m had commonly risen by 5%.
What I also saw glimpses of was that some of the properties selling above their RV had large land holdings which did make them targets for subdivision
Perhaps simplistic I know – but rightly or wrongly I look at rental market indicators as some sort of market guide.
There is constant talk of buy a property and simply rent it out – it can be that simple, but it can also be a miserable proposition when empty and the costs just keep coming – throw in no capital growth at the same time and the misery hits the jackpot.
It seems to be there is currently something of an upswing in rental availability – maybe it’s seasonal or maybe I’m just wide of the mark.
A glut of rentals would not be pretty – leafy suburbs aside.
Hi custard,
I know a professional couple who are looking for a nice 4-beddie rental in the inner-city suburbs - St Marys Bay, Ponsonby or Grey Lynn areas. The woman's a consultant and works from home - and she wants large rooms (and off-street parking) for clients. She's been struggling to find something for the last 6-7 weeks.
But, one would expect the rental market to fade a bit at this time of the year. Who wants to move house in winter? Most people are settled for the year by May.
TTP
I imagine they are struggling with that wish list – however, probably something that ultimately money can’t fix – perhaps therein lies the rub.
That aside, I was more referring to general suburbia rather than leafy suburbs and inner-city.
Take your point regarding the winter settlement period.
In the meantime will mull, muse and ruminate over this rental scenario of mine – I still think there may be a story in there somewhere.
And if not, I’ll just have to make one up.
Gordon and/or Retired Poppy, One Roof has reported that they think that CHRISTCHURCH is the BEST FUNCTIONING housing market in the country.
Totally agree with the report!
Affordable with opportunities to make plenty of capital gains and great rental yields.
Maybe this will keep,Gordon quiet for awhile and clearly shows that he hasn’t a clue when it comes to housing investment!
No doubt he will come on and tell us how prices are dropping and how cold and shaky ChCh is!
He hasn’t got a clue!!
No need to comment The Boy. You said it all. Cold, shaky and prices are dropping. You just forgot to mention rents are dropping in Christchurch which is a statistical fact along with house prices. I hope you are selling plenty of houses as the commissions will be handy to shore up your so called portfolio.
Gordon, thought you might have been in bed by now, but true to form same old same old.
Our rents are not dropping, certainly not cold at the moment and we can afford the power when it is colder.
Shakes don’t worry us Gordon as we are made of strong stuff and our houses are well built and still standing!
Finally, I don’t damn well sell houses Gordon as I am not a Real estate Salesperson, as our portfolio provides a pretty substantial income for us!
Offer still on the table Gordon, name the stake you are prepared to hand over, it can all go to a charity of your choice if you like.
The Boy you are a similar age to myself. Two boomers who were lucky to be born when we were. You sell real estate and I am a retired professional. You are obsessed with yourself and always remind us and yourself that you are okay finance wise. Just relax . Take some advice for the sake of your family and think outside poor old Christchurch before you lose it all. If it in fact exists.” Those who cry out loud have the most to hide.”
Other than the very stupid comments you made about Jacinta Adern and her pregnancy you also commented once that you were an agent in the past. Once an agent always an agent The Boy. That admission says a lot about you. Uneducated, not able to get a decent paying job and not a team player. Agents are loners who work on commission and it is dog eat dog. I know that as in my profession I saw them in action over 30 years. If a commission was at stake many would do anything to get it including shafting someone in their office by stealing a potential buyer or vendor principal. That is why they are near the bottom competing with members of parliament for the grand prize which is the least liked people in the country.
Winters is coming....Always has a slow down of sales.
Immigration is dropping and will drop further.
Chinese capital controls (demand side), and overseas money getting the red card soon (supply side).
Losses being fenced. Should stop PAYE manipulation.
Education/Immigration scam is being wound down.
Kiwibuild is getting funded (still just noise but give it time).
Better transport for people vs freight is getting funded.
Rental Property standards (anti slum) inbound.
Water standards being proposed for farmers (biggest debt ponzi of all)
Price rises stalled (at best), significant down side risk of actual capital decline.
Bank lending tightening.
Aussie banks being investigated for poor lending behavior.
Interest only problem in Aussie http://www.news.com.au/finance/real-estate/buying/home-loan-hike-place-…
Lots of noise about Money printing stopping and its effect on lending rates in the US, and thus the rest of the world.
Will say I am mildly surprised that on the back of all of the above the amount of sales below CV is not greater than it is. A lot of this stuff has not really happened yet it is just being worked on by the new Govt. Standard hype/bubble curve suggest we are somewhere between the denial and fear stages. Next 18 months should be interesting.
Bears stocking up in popcorn, Bulls probably stocking pepto bismol.
ha-ha! while I was watching an action packed Game of Thrones, rabid spruikers were carelessly feasting on Zachary's opaque and unthought out portions.
Zachary, for added transparency, it would have been ideal had you broken down your analysis by region as I suggested above. As you know, some regions of Auckland are now falling in price, others not. If the market is not treating "do ups" kindly this indicates flagging confidence renovations will yield a viable return by way of capital gain. This is a warning sign of a market now past its peak. Your analysis hasn't revealed anything new whatsoever beyond what is already been acknowledged. Auckland's (overall most optimistically reported) 0.8%pa above where it was 12 months ago. REINZ report it as a 2.2% fall. Whatever way value is measured and reported, when adjusted for the rate of inflation, Auckland houses on a "basket case" basis is now eroding in value. With legislative changes in the wind, there are more attractive alternatives for the smart money for some time to come.
No one here has said house prices are currently collapsing. Who said they were? This is a desperate spruiker "scattergun" approach to dealing with a genuine threat to their collective belief. Although TTP, you are weazeling your way closer by admitting recently house prices will fall by a small amount and for FHB it's matters more than ever that they time their entry into the market. You're making a complete fool of yourself.
Delightful morning to walk the dog and have a coffee at Kohi Cafe. R-P, while I’m doing that can you please list the alternatives to invest in? I have too much cash and need it to last too long to chuck more on TD. The COL might just yet engineer the mother of all recessions but I can’t rely on that.
Rex Pat, now that your services are surplus to needs, perhaps you could stroll down to your local office or click on the link below and again experience that "I'm valuable" feeling?
Why would I donate to them? Their exemplary economic management is why I (currently) have no job. There was simply not enough company financial distress to consult on. It was a serious question. I have more cash to invest and TD's aren't going to provide the required return after tax and inflation. My wife wants to enlarge the house and take in 'boarders' like the guy down the road. It must be tax effective.
Rex Pat, have you considered turning your efforts to spin doctoring? You're showing some early potential. Rather than practice on me, practice it here; https://www.national.org.nz/volunteer
Who knows, all dreams being realized even dreamers can BS and get paid for it. ;-)
RP I was responding to these two comments:
Certainly some about RV, but a majority under and some as much at $100k under. - ex socialist
Houses are going 10% to 30% below CV - Current norm. - alittle
I think I proved that the auction results published here do not support these conclusions except that some properties do indeed sell for over 100k under RV however the majority continue to sell for more than RV. On average 3.8% more.
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