Motivated buyers are meeting motivated sellers in the auction rooms, and are winning more results lower than rating values, especially in Auckland
By David Chaston
There was a good lift in residential properties being offered by auction this past week, up 12% to 274 in the auctions we monitor.
But the sales achieved did not rise, stuck at about 130. That gave an overall sales rate of 47%, down from last week's 54%, and back to winter levels.
The proportion of those that did sell, selling at or above rating valuation fell also, back to 34%.
In Auckland, the proportion selling at or above rating value was only 30%. But more than half did sell.
There was a noticeable lift in the number of North Shore auctions this week, but a rising proportion of them sold for less than rating values.
Canterbury auction levels were stable, but a few more than last week achieved rating values or more.
The lift in overall auctions reflects the season with spring traditionally bringing out more property events, more buyers and sellers, and usually more auctions. But auctions are still a specialist corner of overall market activity. In August, more than 5,500 sales were made nationwide. Using auctions for price discovery would have been only a fraction of that activity, maybe about 10%. We monitored only 1002 auctions in that month and recorded only 489 sales.
Last week's suggestion we might be seeing more 'motivated buyers' has perhaps changed this week to seeing 'motivated sellers'.
Details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the selling prices and rating valuations of those that sold, are available on its Residential Auction Results page.
This story was originally published on Interest.co.nz and has been republished here with permission.