Raine & Horne Kumeu - Hobsonville Blog

Going to an auction takes an act of faith, faith that the market is strong enough to sustain competition, faith that you have spent enough on advertising, faith that the banks are going to look favorably on the house and the buyer.

When buyers are cautious, buyer numbers are down, and the requirements of banks are elevated the results can be underwhelming. Some auction agents refer to this vendor conditioning which seems counter to a professional agent's fiduciary responsibility to ensure the very best price outcome is achieved.

But then there are the facts. On any week we are seeing around 20-40 homes taken to auction in this North West region. The statistics indicate that 70% will be passed in without selling (due to no bid or an insignificant bid). Of the 30% that sell, properties that reach or surpass their RV value have been very few indeed. In Barfoot’s Auction room on the 8-14th March no properties in the Waitakere Ward reached or exceeded their RV. So, we ask the question, if you have a plan to auction, and your potential for success today is under 1/3 and the result will be less than you want, do you think that’s a good plan?

Statistics in Auckland are tracking in the right direction with sales volumes and prices increasing month on month but this is also based on a low starting figure given the sales numbers and values experienced over December 2024 and January 2025.

One thing is for certain, mortgage interest rates are coming down with floating rates under 7% and 2 years fixed at under 6%.
With the OCR continuing to reduce and inflationary pressure softening it is a matter of when not if house prices in the North West start to climb.

Graham McIntyre - Raine & Horne Real Estate 027 632 0421 or email [email protected]