Many homes being passed in with no bids at Barfoot & Thompson's latest auctions

[incident]

http://www.interest.co.nz/property/84683/many-homes-being-passed-no-bids-barfoot-thompsons-latest-auctions

coming to an end?

[PTILoveYou]

Same as after 1 Oct 2015, and we all know what happens after Feb 2016.

Central Barfoot auction room is still pretty reasonable, 40-50% success rate on the day

[big fella]

only difference this time is that not only has the LVR increased again banks are looking to increase mortgage rates as well. what happens after February 2017 will be very interesting.

anyone have any thoughts on what will happen after February 2017 ?

[PTILoveYou]

anyone have any thoughts on what will happen after February 2017 ?

Auckland market warms again. Supply and demand.

[Kbkiwi]

Same as after 1 Oct 2015, and we all know what happens after Feb 2016.

Central Barfoot auction room is still pretty reasonable, 40-50% success rate on the day

what happened after Feb 2016? The last gasp of a dead bull rally in property. The 40% LVR was a sledgehammer that stopped price appreciation in its tracks.

[PTILoveYou]

only difference this time is that not only has the LVR increased again banks are looking to increase mortgage rates as well.

Mortgage lending apparently dropped 26% in October.

So the banks are keeping their interest rate margins for their profit.

[Bobsyouruncle]

Auckland market warms again. Supply and demand.

Or it cools or it goes bananas. Just too many uncertainties really. I can't see any disasters ahead for Auckland economically. In fact part of our best place in the world to live award last week was built on how well governed we are as a nation, which really means Auckland. So go go gadget gary, keep the buying machine rolling I reckon.

[PTILoveYou]

Or it cools or it goes bananas. Just too many uncertainties really. I can't see any disasters ahead for Auckland economically. In fact part of our best place in the world to live award last week was built on how well governed we are as a nation, which really means Auckland. So go go gadget gary, keep the buying machine rolling I reckon.

I think this time round different parts of Auckland will perform wildly different compared to before.

The 40% deposit is a major change.

[incident]

I think this time round different parts of Auckland will perform wildly different compared to before.

The 40% deposit is a major change.

Which parts of Auckland are these?

[enzed]

Also different this time:
- 40% LVR aside, banks generally tightening up on lending
- 2nd tier lenders generally not an option to circumvent the LVR
- mortgage rate outlook is increasing rather than decreasing
- (diminishing) threat of Debt to Income ratios to prevent further increases ie: capital gain

But not to surprising if it bounces back somewhat next year, it just looks like it is less likely than last time.

[PTILoveYou]

Which parts of Auckland are these?

Imo investor rich areas will be hardest hit and harder to recover.

[Bobsyouruncle]

That's not new Gaz that's what always happens. Areas that should never be expensive like Otara, sykes Rd and Clendon etc. will fall over because who wants to live there?

They always over perform on the way up.

[Davo36]

Auction clearance rates falling:

http://www.interest.co.nz/property/88939/sales-rates-ranged-zero-50-barfoot-thompsons-latest-auctions#comment-937143