Bidding strong for city houses

Two Auckland houses have sold for well over their reserves after drawing big crowds at open homes and auctions.

Jane Palmer, of LJ Hooker, said the fact that interest rates had hit a new low was thought to be part of the impetus for strong bidding on the properties.

Ian Jowsey, sales manager and auctioneer for LJ Hooker Ponsonby, said Wednesday's 6pm auction drew 150 to 180 people and strong bidding for both places.

A house at 37 Pine St in the Mt Eden/Balmoral area was valued at $590,000, had a reserve of $625,000 and sold for $730,000.

"Rich in character is this refurbished three- to four-bedroom transitional villa," the agency said, citing west-facing indoor/outdoor flow to a generous lawn, in a quiet street and near popular schools, village shops and transport.

The second house, at 63 Mulgan St in New Windsor, had a reserve of $280,000, was valued at $350,000 and sold for $340,000.
It was marketed as needing work.

"Three-bedroom 1960s do-up with massive potential," said the agents. "First time on the market in 40 years. Elevated position on 617sq m. All day sun. Vendor in rest home. It must be sold."

Ms Palmer said both houses drew large numbers of viewers to open homes before the auctions.

About 280 groups visited the Balmoral house and 100 visited the New Windsor house.

The Real Estate Institute and Auckland's Barfoot & Thompson have both reported renewed activity in the past few weeks.

QV's next statistics on house sales will be released on April 8.

BNZ chief economist Tony Alexander has also noticed that comments from the real estate sector are the most positive for many months.

"While there is no evidence of prices rising - and we don't think prices will trend up for some time - there is clearly a market-clearing process under way. Vendors have become more willing to accept reduced offers while more buyers are out and about.

"Owner-occupiers are acting in response to low financing costs and perhaps reduced hopes of large price falls, while investors are finding they can make properties cash flow-positive now and expect rent rises down the track as declining new supply runs up against accelerating population growth," Mr Alexander said.

"The housing market appears to be landing on the cushion we have written about for many months."