First home buyers and traders were among those slugging it out in auction rooms this week, with certain homes being snapped up for prices that far exceeded seller and agent expectations.
Agents and auctioneers report a growing awareness among buyers that the market has reached the bottom and that that shift is playing out on the auction floor.
In Papatoetoe, a three-bedroom do up on Wyllie Road, near the Cambodian Temple, sold under the hammer in what Ray White agent Cathy Mei says was an exciting auction with 19 registered bidders - “that’s a lot”.
The home has a CV of $910,000 but Mei says it needed work inside and out and the vendor, who had been renting the property out, was delighted with the eventual $764,000 winning bid, which was more than $100,000 over what he had hoped for.
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Half the bidders were traders - people planning to renovate then resell – with the other half split between investors and first home buyers, says Mei, who marketed the property with Samsith Kim.
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At the end, there was one trader and one first home buyer left and the trader won. Mei says the new owner plans to have the property revamped and back on the market in six weeks.
The market has definitely seen more confidence lately and the OCR not being increased this week gives buyers even more confidence to purchase, she says.
Barfoot & Thompson auctioneer Murray Smith says agents are telling him people are turning up to open homes with serious buying intentions – they are no longer just having a nosey to see what they might have to pay in six months’ time.
“If they're in the market, they are there and ready to go. That's the big thing at the moment,” says Smith, who sold every property he called last week.
“I think it's people feeling like they're at the end of the OCR rises and prices are probably as cheap as they are going to get.”
While there are existing homeowners facing pain with mortgages rolling on to higher rates, there are also many people who have little left to repay on loans who have a lot of equity in their homes, he says.
He also says plenty of people are obtaining finance approval at the higher rates of 6.5% and 7%, and that includes first home buyers. “I think probably in reality the number of people affected by mortgage rates is lower than we think.”
This two-bedroom home on Tyburnia Avenue, in Mt Albert, was pitched at first home buyers and sold for just over $900,000. Photo / Supplied
A Balinese resort-style home on Margaret Street, in Mangawhai Heads, Northland, sold for $1.775m. Photo / Supplied
First home buyers put up a quite fight for a two-bedroom property, on Tyburnia Avenue, in Mt Albert, which Smith sold on Wednesday morning. Bidding started at $750,000 and finished at $902,000.
First home buyers slugged it out in increments of $1000s, $2000s and $3000s for the freehold property, which has a CV $1.225m and is close to the motorway and supermarkets.
Smith says first home buyers have a lot of hoops to jump through to be able to bid on a property so when they find something they want they give it everything they can within their limitations.
He also says vendors have come to terms with the market and know they are not going to get the crazy prices of a couple of years ago.
Beach houses in popular holiday destinations also proved popular this week. A Balinese-inspired home with a bamboo ceiling in Mangawhai Heads sold under the hammer for $1.775m, while another coastal property at Papamoa Beach sold for slightly more at $1.8m.
The house in Mangawhai was in the sought-after golden circle and only a short stroll to the eateries and the estuary, selling for way over its $1.005m RV.
Bayleys agent Amanda Bond said Aucklanders bought the house and while bidding had come down to two people there were “a stack” of confidential buyers waiting in the wings in the hope the property would pass in.
That was not to be and the vendors were “very, very happy” with the price. Mangawhai prices have not dropped nearly as much as Auckland prices, especially in a location like this one, she says.
“It’s just in that perfect location which brings that price tag with it. It’s hard to compare with anything else that’s sold within the area because nothing comes up for sale very often in that golden circle area.”
This four-bedroom home on Papamoa Beach Road, in Papamoa, Tauranga, was snapped for $1.8m. Photo / Supplied
The property featured landscaped gardens with tropical palm trees, an outdoor shower, a six-seater spa, two entertaining decks, a high spec kitchen and bathrooms, and extra guest accommodation.
The Papamoa beach house was also sold by Bayleys and while the agent did not want to give details about the sale the property on 809sq m of potentially subdividable freehold beachfront land was marketed as having stunning unobstructed ocean views and only a quick walk to the beach.
“Originally a 1970s home, it has been rejuvenated to be both fundamentally and cosmetically enhanced,” the marketing said.
The home had new cladding, new joinery, three additional decs, large sliders, a scullery and large open areas.
At the other end of the scale, a development site mortgagee sale in Auckland also sold under the hammer after what appeared to be a strong battle.
The opening bid for the three-bedroom freehold property on Sunderlands Road in Half Moon Bay, on 1052sq m, was $1.8m with the property selling for $2.88m after 43 bids, still under its CV of $3.25m.
The Barfoot & Thompson listing described the property as “opportunity knocks with this prime development site”.
Zoned mixed housing suburban, there are services nearby, a wide road frontage and in a highly sought after location close to the Half Moon Bay marina and also Macleans College.
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