Auctions have continued to be a very popular method of selling residential properties, with over 43 percent of sales completed during October in North Rodney being sold by auction.
Last month we reported that auctions accounted for 26.75% of residential sales during the July-September quarter, so Octobers’ result is quite astounding and demonstrates the popularity of this method of selling on the current market. The same month last year showed that only 8% of the properties sold by auction so to increase to over 43% this year shows a mammoth change in thinking.
While the percentage of sales made by auction increased dramatically, the number of sales made this October was significantly down from fifty in 2014 to thirty-seven this year. That’s a decrease of 26 percent and is a reflection of just how tight the market is in terms of properties that are available to sell. It also explains why house prices have continued to rise. With demand remaining high and availability of stock remaining low, the pressure on prices will mean that we may not see any easing in price rises for some time.
Number of Residential and Rural Sales January 2013 – August 2015
However, reports out of Auckland and the North Shore, indicate that activity has eased considerably since the introduction of new rules for buying and selling properties on October 1st. These rules are centred around tax payable on profiteering from the market and registration of overseas buyers. Apparently, a good number of properties are now being ‘passed-in’ at auction, sales have slowed and the market in general has lost its heat. History has shown that it is only a matter of time before the same will happen in our market – we don’t know just when, but we do know that we are intrinsically tied in with the Auckland City market and therefore, it will happen.
It’s interesting to note that since the middle of 2005, when Tauranga’s average value was almost equal to Auckland at roughly $435,000, Auckland has drawn away from each of the regions to now be over 70% more expensive than each of them. The gap has never been so great, and it’s unlikely it’ll reduce too much over the coming years because the fundamentals supporting Auckland’s growth are too strong.
Many believe we’re really in unprecedented times. While the market may have eased a little, there is still strong demand in our largest City – while there may not be the buyers who were willing and able to pay well over th
e odds, there are still all those left who previously missed out but want, or need, to get into the market.
Rodney North has been part of this market for some months now and it has spread its tentacles beyond, over the last 3 months, to the south Kaipara District where sales in the Kaiwaka, Maungaturoto and Paparoa areas have also been unprecedented. We don’t think the pipeline of unsatisfied buyers will be cleared any time soon.
Next month we have our annual “A LITTLE RAY OF GIVING” appeal where we collect Christmas gifts for distribution to
those that would otherwise not receive a gift. Last year we passed on over 400 gifts, food vouchers etc through the generosity of our community. Please help us to make this another memorable year for others.
Disclaimer: Market statistics based on settled sales recorded with CoreLogic NZ where sales from ALL sources are recorded. In preparing this document we have used our best endeavours to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.