Sue Hall

"My reputation is your guarantee"

" Sue Hall You've done it again Sue! Sold another home for us in a very professional manner, kept us informed throughout the process and done so in a caring way. We couldn't have asked for more. Thank you Sue!! "

- Sonny and Eileen

"Just wanted to thank you for making the sale of 53 Carrington Avenue so seamless and stressless. My only regret is that we haven't actually met you yet! But we will make sure to come over and do that before long. Anyway, thanks again for all your great work on our behalf. "

- Trevor & Pauline
More testimonials »

Auction clearance rates might be down, but you can still sell!

18th Jul 17

 

Across New Zealand, Auction clearance rates have taken a bit of a plunge recently.  The downturn is part of the transition from a seller’s to buyer’s market, in large due to the 2016 Loan-to-Value restrictions, tighter bank lending and rising interest rates.  But while Auctions aren’t the selling frenzy they once were, they’re not the only way to sell a property.
 

What We’re Seeing

Towards the end of 2015, near the peak of the property boom, Auction clearance rates in the Hamilton property market were around 65% to 75%.  Last year saw a turn with the rate dropping to 46% and this year it looks set to continue the downward trend.  Of the 32 homes reported for Auction on www.interest.co.nz in March, the best sales month for 2017 so far, only five properties sold - A clearance rate of 15%.  In April, it was only 5%.

Despite the evidence that Auctions are on the out, Lodge Real Estate still managed a 42% clearance rate in April.  It proves, once again, that they are one of Hamilton’s leading real estate agencies for a reason.

“While that figure is down from mid-2016 figures, there is still plenty of property selling in competition and the results are, surprisingly, on the upside,” says Lodge Real Estate Managing Director, Jeremy O’Rourke.

Other Ways of Selling

More and more properties are going up for Auction and being passed in without any bids.  While it might seem like putting a property up for Auction is wasting a lot of time, effort and money, don’t discredit it completely.

“We’ve shifted into a buyer’s market and we’re now seeing more buyers taking a cautious approach,” Jeremy says.  With frenzied property purchasing in the past, buyers can now afford to take their time when choosing and assessing a property.

As a result, more homes are being listed at fixed price, by negotiation and occasionally, as an expression of interest rather than as an Auction.  However, it’s also becoming increasingly common to get multiple offers on properties straight after an unsuccessful Auction.  This again highlights the shift towards a buyer’s market, where buyers are less inclined to put an unconditional offer in under the hammer.

“Some of the benefits of the Auction process are often missed if we focus too much on the outcome of the Auction itself,” says Jeremy.  “Although a property might not sell under the hammer, the Auction process is still finding multiple interested parties, producing buyer competition and ultimately, a result for the vendor.”
 

Auctions Still Hold Some Value

While Auctions are becoming less attractive, they are still a good selling strategy under the right conditions.

“There’s strong competition for modern and renovated homes in many established and sought after suburbs,” says Jeremy.  “Auctions of properties and development projects in these areas are still very successful.”

“Because Auctions continue to generate interest and competition among buyers, taking your property to Auction still provides a real opportunity to secure a premium price for it, either under the hammer or post-auction.”

As in any buyer’s market, sellers do need to temper their expectations.  The bidding wars are over.  However, there are still good gains to be made - It’s just a matter of finding a selling approach suited to your home.  And the best way to do that is to enlist the help of a local agent who knows the market inside out.

^ top
Filed under Hamilton / Waikato \ Real Estate

Related posts

Leave a comment

Fields marked * are required

Sue Hall's Blog

Generational Change

Its not news – With every generation change, the way we live our lives changes as well. Never has that statement been as correct as it is now … Economically, it makes more sense to go out and buy a jersey instead of knitting one, the big “OE” is now par for the course, a large amount of socialising is done via Apps or websites, more and more infants and toddlers are in full time care as both parents need ...

Read More »

In Hamilton? Really?

It’s no surprise that Auckland has the highest number of million dollar homes in the country. But did you know that along with Queenstown and Wellington, Hamilton has some of the most expensive non-Auckland real estate? It’s true! A couple of properties on Pembroke Street, right by the Lake, were worth $17.2 and $15.8 million dollars! Those two sales hold the top two places for the most expensive real estate outside of Auckland!

Read More »

Sticking with Tradition

Bindi Norwell, CEO of the Real Estate Institute of New Zealand featured on 1 NEWS Breakfast this morning to discuss the New Zealand real estate market.

Read More »

Have your say with the Hamilton City Council

Every six years, Council's are required to hold a review around their representations and this year, the Hamilton City Council will be holding it's Representation Review. To help with the pre-consultation phase of the review, the Council has launched a public survey via the internet.

Read More »

The Doors are Reopening!

After a year and a half of waiting, the Hamilton City Council has announced a date for the reopening of the Central City Library. Back in December 2016, there were serious concerns raised around the safety of the Library building, should Hamilton experience any seismic activity. The issues that were discovered called for the immediate close of the building until repairs could be carried out.

Read More »

More Blog Articles »