Auction confidence rises after OCR hold

With the hold in OCR last week, buyers and sellers continued to gain confidence in the market, with Ray White New Zealand scheduling 290 properties to go under the hammer, up 85.9 per cent year-on-year.

The group recorded an all sold clearance rate of 49.3 per cent, up 9.3 per cent compared to the same period last year, with an average of 1.8 registered bidders and 1.4 active bidders.

“Increased stock in the market has had a remarkable impact on Ray White New Zealand’s auctions as choice and positivity persist,” Ray White New Zealand lead auctioneer Sam Steele said.

“No change in the OCR has given buyers confidence resulting in a commendable clearance rate of 51.4 per cent in February, while a substantial 92 per cent increase in the number of auctions called has given buyers increased choice.

“A total of 166 auctions unfolded last week, showcasing a robust 56 per cent escalation, with an average of 1.8 registered bidders demonstrating the increased stock in the market. The ascendancy of auctions over alternative sales methodologies becomes increasingly apparent when viewing the average time properties spend on the market: a mere 26 days for auction, in contrast to the 34 days for private treaty sales. This stark contrast in sales approaches gains further prominence as the average number of bidders rise.

“More than 40 per cent of all properties introduced to the market by Ray White embraced the auction format last week, with 42 per cent affirming the resounding confidence placed in this transparent sales method.”

The top result of the week went to Ray White Remuera agents Simon Siddells and Dianne Maxwell (pictured above with auctioneer John Bowring) who sold 17 Vanessa Crescent, Glendowie, Auckland City, under the hammer for $6.1 million. With Ray White auctioneer John Bowring calling the auction, the property recorded three registered bidders and three active bidders.

“The buyers were a family who wanted to move for lifestyle reasons and to be closer to Glendowie highschool. All our buyers were families wanting to move into the bays or stay within the bays,” Mr Siddells said.

“The sellers had lived there for eight years, I sold it to them in 2016. It was dated at the time but in good condition, they did a massive renovation to update it. There was no surface left untouched. Their kids are now grown up and they’re looking for a change in lifestyle.

“Good quality homes are selling really well, there’s a good number of buyers out. We had 68 groups through the open homes.

“A lot of people put things on hold last year but now there’s a lot of activity happening. People had a ‘wait and see’ attitude last year, but now they’re just getting on with things.”