Barfoot mid-week auction: 50 per cent of properties passed in

Name: Watch NZH Focus: House prices continue to fall
Uploaded: 2016-12-16T11:55:07+13:00
Duration: 207 s
Description: There are more signs of trouble in the Auckland housing market with half of all properties failing to sell at an Auckland auction this week Anne Gibson is the NZ Herald’s property editor and says vendor expectations are being blamed.

By Anne Gibson

Property Editor·NZ Herald·

15 Dec, 2016 10:35 PM3 mins to read

There are more signs of trouble in the Auckland housing market with half of all properties failing to sell at an Auckland auction this week Anne Gibson is the NZ Herald’s property editor and says vendor expectations are being blamed.

A major Auckland auction this week saw half the properties failing to sell under the hammer and vendor expectations of high prices are being cited as the reason.

Campbell Dunoon, Barfoot & Thompson auction manager, indicated the event at the firm's offices at 34 Shortland St on Wednesday recorded a 50 per cent clearance rate.

"We sold eight out of 16 properties," he said referring to reserves which meant bidding failed to reach the necessary threshold.

"Some prices were very close to vendor expectations but not quite at a level where we could sell," Dunoon said.

Those that did sell were not far from the CBD, he said.

"Most of these were in the inner suburbs such as Remuera, Mission Bay, Grey Lynn and Mt Eden," Dunoon said.

Auction clearance rates as low as 16 per cent emerged last month, a big contrast to when Auckland clearance rates were as high as 80 per cent or above a few years ago.

Late last month, Dunoon said a Manukau auctions saw 48 properties called: eight were sold under the hammer but another four were sold straight afterwards making a total of 12 by 5pm the next day, he said. That gave a 16 per cent clearance rate on the day but a 25 per cent clearance rate subsequently, his numbers showed.

Dunoon said this week that more places would be auctioned next week.

Places which failed to sell at the auction were often now being advertised at a set dollar sum, he said.

"It is common for vendors who have not sold by auction to put a fixed price on their property immediately after auction. In addition, it may also reflect the time of year where vendors are happy to put a price on their home, with minimal marketing - no open homes - as a to have a passive presence throughout the holiday period. Increased marketing activity then kicks in after the holidays," Dunoon said.

Three sets of data out this month also indicated a change in Auckland.