Real estate auction rooms appear to have more than held their own in October compared to a year ago, according to interest.co.nz's Residential Auction Results, which monitored 1224 residential property auctions over the period 1-28 October. That's up 29% compared to the equivalent period of last year (2-29 October) when 950 auctions were monitored using the same methodology.
However while the number of properties marketed for sale by auction was up strongly, the sales clearance rate stayed almost the same, with sales on 513 (42%) in October this year compared to sales on 380 (40%) in the equivalent period of last year.
Of the 434 sold properties where the selling prices were able to be matched up to their rating valuations (RVs), exactly two thirds (258) sold for more than their RVs while 168 sold for less and eight were the same as their RVs.
Interest.co.nz has only recently started including rating valuations with its auctions results so the comparable figures for last year are not available.
Interest.co.nz's auction coverage is concentrated mainly in Auckland, the Bay of Plenty and Christchurch where there are high levels of auction activity.
In Auckland, 893 auctions were monitored from 1-28 October this year, up by a third from the equivalent period of last year.
But the sales rate edged down very slightly, from 41% last year to 39% this year.
And of the 283 sales that could be matched with rating valuations, 148 (52%) sold for more than their RVs, 129 for less and six were the same.
In the Bay of Plenty 85 auctions were monitored from 1-28 October, and sales were recorded on 38 of them (45%).
Comparable figures for the equivalent period of last year are not available for the Bay of Plenty at this stage.
Almost 100% of the sales recorded this year were for more than their rating valuations, however the rating valuations in Tauranga were set in July 2015 so that result is not surprising.
In Christchurch 142 auctions were monitored from 1-28 October, up just 6% from the equivalent period of last year, while sales were recorded on 72, giving a sales clearance rate of 51%, up from 41% last year.
Of the 70 sales where prices could be matched against rating valuations for sales recorded from 1-28 October, 36 (51%) were for more than their RVs, 32 were below and two were the same.
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51 Comments
"In Auckland, 893 auctions were monitored from 1-28 October this year, up by a third from the equivalent period of last year.
But the sales rate edged down very slightly, from 41% last year to 39% this year"
Did you even read the article????
You keep telling us that clearance rates are noticeably up, but it appears you are wrong yet again.....
"However while the number of properties marketed for sale by auction was up strongly, the sales clearance rate stayed almost the same, with sales on 513 (42%) in October this year compared to sales on 380 (40%) in the equivalent period of last year".
What this says to me is same level of buyer interest but increased number of people selling. I don't see this as buoyancy necessarily but potentially a sign of a buyers market (more choice/less competition).
.I think Agent TTP has taken one headline and thinks it insulates us from Australia's woes and solves a brewing global debt crisis. I'm still waiting for his fact packed analysis on how NZ will be immune. It appears he's another one who can't see past his own letterbox.
Agent TTP - LOL. You will have to comment a hell of a lot on this page if you are hoping to get the same number of comments as Thursdays headlines " Auckland now a buyers market as new listings surge and asking prices ease. Popcorn Anyone ???https://www.interest.co.nz/property/96645/realestateconz-says-auckland-…
Well the AML (Anti Money Laundering) rules are due to kick in soon for Real Estate Agents, only a few months away. So guess they're trying to get in there quick to clean their ill gotten gains, so that may have also helped to push up the figures.
Since this is an area that does get ignored by most investors due to them playing the 'Hear no evil, speak no evil game'. This has and does have a huge impact on us by shoving up property prices particularly for Auckland.
Here's a handy quick video that gives an example of how global money laundering works.
How Chinese gangs are laundering drug money through real estate around the world
https://www.youtube.com/watch?v=Z93NuFF62dA
HI Gingerninja,
Auckland auction clearance rates have risen by a lot more than 2% since Feb/March/April 2018.
By the way, did Central Wellington house prices drop by much while you were away? Has that price fall of 10% that you’ve been anticipating come about?
Interested to know your take on what’s happened to Wellington house prices over the last few months.
TTP
TTP please don't distort and misrepresent my comments. I have never been overly bearish on the Wellington market.
Wellington city is up 8.5% in 12 months. However, it was pretty flat in the 10 years prior to that, averaged out over that decade capital gains in Wellington are not spectacular. The house we rented in Brooklyn sold for just under $300k more than it was purchased for in 2007, after having $140k spent on an extension and major renovation (it was a very nice house btw). What is that? 14-15k per year over 11 years? My UK home grew 60k per year in 5 years....and other investments have done better still. I know it's hard for you to understand, but property really isn't the only or best investment vehicle. It might be for some, but hasn't been for me.
As i've always maintained, Wellington is not overpriced. It would need to continue to boom for several years to get anywhere near the bubble territory seen in Auckland. That isn't to say that a correction in Auckland wouldn't spread to Wellington, it might, and a 10% correction isn't inconceivable but my decision not to buy is much more complex than your attempt at a snide over simplification.
I have several investments, across several currencies to consider, all of which have returned way more than the 8.5% CG in Wellington. And as I have told you numerous times, I am happy to rent because overall the cost and opportunity cost, is negligible.
I appreciate the effort with the passive aggressive dig above but it's really not necessary.
Hi Gingerninja,
To set the record straight, before going overseas you were quite bullish about a downward price correction in the Wellington market.
in fact, you maintained that it was your personal strategy to wait for such a correction to transpire before purchasing a home in (Central) Wellington.
TTP
TTP there you are distorting AGAIN. I said that because it was financially neutral for me to wait and as nothing had come up to tempt me, there was little opportunity cost to waiting to see if the market did turn. And i'm still in that same situation. NZ housing market is pretty vulnerable to a housing correction atm in my assessment, it may not ever happen, but as waiting isn't costing me money, I have no regrets. The market would need to continue growing at a rapid pace (like it did in Auckland) before I had any FOMO.
To a level only marginally higher than last year in the same period.. and that is with the help of the last minute rush of the FBB compared to the lull of last year's post election coalition negotiation period.
Would be pretty damning if it was worse, so marginally better isn't exactly something to crow about.
Greg, do you have figures for 2016?
Calm down Agent TTP, it's just a headline - nothing has changed. It's high time you were held accountable for your misleading representations of this market. Big drops have occurred in Auckland's lower quartiles, weakness has begun manifesting itself in the upper quartile. In this BUYERS MARKET, buyers can cherry pick the very best and tastefully renovated without great competition while passing up on the rest. This has distorted the pricing enough to form your phantom "resilience".
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
Our auction turnover is around what Sydney's is and alarm bells are ringing there because of it. The findings of the FMA investigations into our banks lending practices comes out Monday? Its entirely possible access to credit will further tighten post these findings.
Hi Crash-Crusader,
The latest data shows that house prices have been remarkably stable in Auckland over the last 12 months.
Across wider NZ, however, house prices have risen significantly in numerous regions.
What you write is fantasy/crusade - far removed from reality. What’s new?
TTP
Agent TTP, prove where the medians worth less than 2017 CV, I hear you ask? The following list adequately counters your lies; St Johns, Dannemora, Schnapper Rock, Totara Vale, Mangere Bridge, Flat Bush, Hillsborough, Half Moon, Bay, Stonefields, Greenlane, Auckland Central, Burswood, East Tamaki Heights, New Lynn, Milford, Remuera, Epsom, Pt England, Lynfield, Otara, Wattle Downs, Te Atatu South, Kelston, Mt Roskill, Torbay, Wst Harbour, Kingsland, Ponsonby, St Marys Bay, Mission Bay, Te Atatu Peninsula, Farm Cove, Pinehill, Onehunga, Pakuranga Heights, Blockhouse Bay, Morningside, Pakuranga, Botany Downs, Glenfield, Howick, Mt Wellington, Randwick Park, Papatoetoe, Forrest Hill, Glen Eden, Beachlands, Royal Oak, Herne Bay,
Some regions declining also; Omokoroa, Paeroa, Waimate, Waihi, Te Puke, Kaikoura, Hokitika, Ashburton,
Woodend
https://www.stuff.co.nz/business/107694820/auckland-christchurch-proper…
Now, when it's all adjusted for inflation, its a pretty poor performance.
a fairly marginal increase in supply.. still, way better than the other useless lot. Maybe once they roll out their own consenting agency they will actually make a meaningful dent in supply.
Not that there is anything near as much of a shortage as people keep saying.
taimaikkao - Suckers in / investors out.https://www.youtube.com/watch?v=-m_0yJF9Ba4
FYI, yesterdays B&T Auctions, going by whats on the B&T website today, compared to auction list off the website yesterday
16 Maude Street - auction failed. For Sale @ $779.9 (CV -7%)
12 Station St - Sold
1/56 Te Atatu Road - Sold
2/11 Taipari Road - auction failed. For Sale by negotiation.
21 Kerlin Crescent - auction Failed. For sale by negotiation
96 Triangle Road - Sold
63 O'Neills Road - ???? Ad not updated, probably not sold.
1 Landow Place - auction failed. For Sale by negotiation
17 Mili Way - Sold
10 Heversham Place - auction failed. For sale @ $895k (CV+4%)
63a Donovan Street - auction failed. For sale at $1.68m (CV+1.8%)
137 Wiseley Road - auction failed. For sale by negotiation.
12 Thomas Ave - auction failed. For sale by negotiation.
7 Heversham - auction failed. For sale @ $1.1m (CV +12%)
3/68 fonteyn Street - auction failed. For sale at $645k (CV-0.75%)
1A Makora - auction failed. For sale @ $789k (No CV avail - new build)
1/30 Savoy Road - auction failed. For sale $629.5k (CV +2.4%)
23A Rosier - auction failed. For sale at $839k (CV =$840k)
61 Ash street - Sold.
2/64 Budgen St - Sold.
1/92 Kervil Ave - Sold.
8A Invermay Ave - Sold.
8 of 22 sold - 36.4% clearance rate
I guess it depends if your a glass half full or a glass half empty type of person. I still see houses selling and that translates into the sales figures which show price gains are pretty flat, which really points to realistic vendors are still able to sell without heavy discounting. if your lucky enough to have a decent house that doesn't have structural issues then your still going to get CV. The hidden problem is the amount of poor quality builds we have out there.The fact is knowing what I know now, I probably wouldn't touch 2/3 of the houses in NZ.
This is absolutely priceless from oneroof;
Hilarious. Loving the tantrum. "It's the emotional attachment".........no it's not you're selling the place!!
“Yes we are heartbroken,” Mr Kerr said. “We expected to get something more reasonable than this.
“This is garbage.”
Mrs Kerr, whose mother, Yvonne Foster, had lived in the home up until four years ago when she moved into a nursing home. She passed away about a year ago.
“I’ve spent a lot of time and effort to get the property up to this condition — we’ve rewired it, painted it throughout and done up the original floorboards ...
“It’s not just the money, it’s the emotional attachment."
“My grandparents bought the house, dad was born here, my great grandfather even lived here ... four generations of the Foster family!”
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