Residential auctions activity slumps to a three year low
Residential auction activity in New Zealand has dropped to a three-year low as of early August. Factors contributing to the decline include harsh winter weather, rising mortgage interest rates, and economic uncertainty ahead of the upcoming general election.
Why it matters
The slump in auction activity reflects broader cooling trends in the housing market and cautious buyer sentiment amid economic instability.
Residential auction activity sank to a three year low at the beginning of August.
Interest.co.nz monitored the auctions of 197 residential properties over the week of 1-7 August.
That was down from 246 the previous week (-20%), and was also the lowest number of auctions recorded by interest.co.nz since August 2023, apart from the Christmas/New Year holiday periods when the market goes into hibernation.
The number of properties being auctioned has now declined by almost two thirds since the summer peak in late March.
Of the 197 properties on offer at the latest auctions, 89 sold under the hammer, giving an overall sales rate of 45%.
There is no shortage of reasons from the winter slump, with morning frosts, icy roads and a good dumping of snow in many places over the last week.
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