Key Facts
- Auction activity in the residential property market saw an increase last week, but the sales rate seems to be declining.
- Last week, 472 residential properties were auctioned, an increase from 303 the previous week immediately after Easter, but less than the over 500 weekly auctions before Easter.
- The overall sales rate was 28% with 132 properties selling under the hammer.
- Over the last three weeks, the sales rate has consistently been between 28% and 30% after a reduction from around a third over the preceding six weeks.
- Property prices seem weaker as well, with only 32% of properties sold at their valuation rates or higher, after an average of about 40% in the previous weeks.
- The latest auction results indicate a slight weakening in the housing market following its peak in the summer.
Article Summary
The latest auction activity in New Zealand’s residential property market indicates an uptick in volume but a decline in sales rate. There was an increase in the number of properties auctioned last week to 472, compared to 303 in the week following Easter, though this is still down from the high of over 500 week-over-week prior to Easter.
However, the overall sales rate is showing a downward trend, marking a rate of 28% last week, which was consistent with the 28% to 30% range seen in the last three weeks. This is lower than the rate recorded in the six weeks before that period which averaged around a third.
Moreover, property prices seem to be exhibiting a downwards trajectory as well. Only 32% of properties that were auctioned last week sold at rates equal to or above their valuation prices. This figure stands lower than the average of 40% from past weeks. This trend, paired with the aforementioned observations, suggests a slight softening of the property market as it exits from its summer peak and enters the slower autumn period.
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