City Sales have observed that as auctions return to clearance rates (the proportion of properties selling under the hammer at auction) similar to those pre-lockdown, bidders and vendors in the country’s auction rooms are getting the most accurate view of property values in the current market.
Similarly, on price, they haven’t seen any indication that prices were falling back by anything significant like the 15-20% touted in the media. However, they say the volumes still have a way to go, and they have just over half as many auctions booked for next month as compared to normal.
Another plus is the sight of good properties that have come new to the market post-lockdown going well, as it seems that everyone is very motivated after six weeks’ off.
Interest is particularly strong for family homes in the $1 million to $2 million price range, also the $2 million to $3 million is still very good, according to City Sales.
Similarly, with LVR restrictions lifted and interest rates at an historical low, they are seeing more first home buyers coming to the market, filling the places of those who have had to call off their search due to job losses or taking pay cuts.
So why should potential sellers auction now in this market? City Sales say that with an election in September which could cool the market, as they often do, while there is a lack of stock, it makes sense for vendors to make the most of the seller’s market. And for buyers, if you’re fearful of the twists and turns the property market is making, and need social proof from others, seeing the competition and the transparency of an auction is attractive.
City Sales have seen that auctions are bringing two key things to buyers and sellers at the moment which are particularly relevant for the times. The buyer is seeing transparent value being derived and they’re confident that they’re not overpaying. When paying by tender, you’re blindfolded and don’t have the market guiding you. At the same time auction is providing confidence to the vendor, giving them timeliness and certainty, so for more information on rental property management, apartments for sale and Parnell apartments for sale please go to http://www.citysales.co.nz .