The Auckland market now (xmas 2016)

[Davo36]

Saw 8 open homes on Saturday. 2 going to Auction, 4 priced 'by negotiation, and 2 with actual real life asking prices.

Sunday morning, got 6 phone calls from agents 'following up'. Sunday afternoon, another 4 (yes, some duplicates). Agents are proactively calling people who viewed a property and expressed zero further interest at the viewing.

The tide is turning alright, and the agents can see it. At least right now. We'll see what happens come Feb/Mar, but right now this is a very solid buyers market.

Wow this is quite amazing. Agents ringing on Sunday morning and afternoon? This hasn't happened for years. In fact since about the year 2000 I reckon. Even in the GFC, they weren't really ringing back. Still used to acrowd of buyers beating a path to their door.

Will be interesting to see how all this plays out. What will overseas investors who are basically buying here for capital gains do? Will they stop buying? Will they actually start to sell?

Or is this just a couple of months of a hiatus. The reverse of a dead cat bounce? Whatever that is called...

[Frezzinghot]

Wow this is quite amazing. Agents ringing on Sunday morning and afternoon? This hasn't happened for years. In fact since about the year 2000 I reckon. Even in the GFC, they weren't really ringing back. Still used to acrowd of buyers beating a path to their door.

Will be interesting to see how all this plays out. What will overseas investors who are basically buying here for capital gains do? Will they stop buying? Will they actually start to sell?

Or is this just a couple of months of a hiatus. The reverse of a dead cat bounce? Whatever that is called...

I must admit, agents are very active now, I remember going to an auction and posting on here about the experience, well I can tell you timing is everything! This trader who payed way to much for a run down property is STRUGGLING to sell it now. Fully renovated and failing to sell. I enquired about the property recently now the agent will not leave me alone.

Im sure its costing this trader a lot, unless he had cash of coarse.

FH

[Frezzinghot]

http://www.trademe.co.nz/Browse/Listing.aspx?id=1201937591

this is the property. Lots of spelling mistakes, agent should have been advised of this!

[Don't believe the Hype]

http://www.trademe.co.nz/Browse/List...?id=1201937591

this is the property. Lots of spelling mistakes, agent should have been advised of this!

what did the trader pay for it and when?

[rocket]

What did you offer??And what $ do you think is a good deal.
Will be exciting to keep an eye on this one as a sample to work out which way the market is heading.
Might be good idea to snap up fully furnished properties from traders at the price of unfurnished 😏

[Frezzinghot]

what did the trader pay for it and when?

I was at the auction, and he came in late and very bullish! I remember thinking what an aggressive buyer he was and unless it hit 600k, he was going to have it.

He ended up paying 515k. Wish I had the before shots but it was a total dive! I estimate he would have spent at least 40k on it, after holding costs, conveyancing, agents fees, and tax, very little if any is left. Property was brought back in september.

FH

[Frezzinghot]

What did you offer??And what $ do you think is a good deal.
Will be exciting to keep an eye on this one as a sample to work out which way the market is heading.
Might be good idea to snap up fully furnished properties from traders at the price of unfurnished 

I got up to 420k and that was top dollar, I saw this selling done up at the time between 520-550k

[Nick G]

Pretty sure Wellington is quake related. A few sales are falling over because of insurance.

[investorak]

I have also been looking in Mt Albert area. Prices are not cheap for any property - houses or units. There is either heaps of competition or the vendors expectations are crazy

[Don't believe the Hype]

I was at the auction, and he came in late and very bullish! I remember thinking what an aggressive buyer he was and unless it hit 600k, he was going to have it.

He ended up paying 515k. Wish I had the before shots but it was a total dive! I estimate he would have spent at least 40k on it, after holding costs, conveyancing, agents fees, and tax, very little if any is left. Property was brought back in september.

FH

You're right... if it cost $40k to renovate and i'll have to take your word on this, based on my calcs this is marginally above a break even proposition - maybe $5k profit before tax.

This highlights that property trading in a hot market is an easy thing to do... the profit is often made by the HOLD of the asset over the period of the 'improvements' - in many cases the improvements are unnecessary and add no real value... had the trader just held the asset and put back on the market they may have made the same 'profit margin'

Do you think this property unchanged might sell for $520-$525k in the current market?

The trick to renovation for profit is to actually ADD VALUE - something few know how to do.

[Valeyard]

Have been casually in the market over the couple of months and can confirm the other anecdotal reports. Was also looking at a similar time around the end of 2014 and the change in attitudes of agents is huge. 2014 - I'd go look at 5-6 in a weekend and maybe get a few calls on Tuesday, Wednesday at best. Agents were supremely confident, no hint of negotiating on price on anything I looked at. This was West to Inner West - Blockhouse Bay to Sandringham.

Can't believe the change this time around. Have included Green Bay and parts of Titirangi in our search, but across all areas...wow. Agents calling literally hours after viewing, 3 odd calls from the same agents, as well as follow up emails. Agents asking what we thought it was worth, saying trying to get the vendors to "meet the market". Very few people at open homes, some places we didn't see anyone else. Previously, agents wouldn't be shy about telling you exactly what a house was worth (in their opinion obviously!) and how you wouldn't get it for less. Looked at 6 in total before realising timing isn't right for us - got at least 2 call backs on each.


Things are definitely very different - interesting to see how long it lasts.

[Nick G]

Always, always add a risk buffer!

[Meehole]

what did the trader pay for it and when?

Harcourts were trying to sell it on 16 July badly in need of a makeover.
Some poor sucker has been caught holding the ball having done it up and now trying to flick it.

[Wellington Broker]

Pretty sure Wellington is quake related. A few sales are falling over because of insurance.

Good point. A lot of those are likely apartments as well which would have impacted on sales at the bottom of the market.

[Anthonyacat]

Just took part in another auction. Again, little interest and even less selling.

For the one I wanted, myself and another bidder back and forth from $450 to $540s, final bid was mine at $551. Vendor wants "closer to $600". Told them to call me back after Christmas when his other house is about to settle and he wants whatever he can get.