Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

Posts Tagged ‘auckland real estate’

Auckland house prices fall by $416 per day in June 2008

Posted by Steve Koerber on July 11, 2008

Today’s NZ Herald headlines shouted the above statistic.  Auckland’s median had gone from $447,000 to $435,000 in just one month.  Low sales volumes were a major contributor.

Four months ago, in March 2008, I wrote this:  “In a few months (say May 2008 we may see a headline that says “Auckland house prices falling by $100 per week”.  By the time a headline like that is published, the decline is likely to have stopped, and the buyers are likely to have returned to the market en masse.”

So, it seems I got the figures a tad wrong.  Are buyers flooding back to the market as I write this?  No they’re not, but I can’t remember a winter in which sales numbers were at all bullish.  When buyers sense that prices are right, they will come of out of the woodwork.  Anyone who is buying right now will tell you they feel good about the price they are paying.  Did they say that during 2006/7?  No they didn’t.

Imagine the opportunites that are about to present themselves to buyers. 

On a personal note – 2007 was my best year in real estate.  More sales, more income than ever!  This year, 2008, I am tracking better than I was last year.  Fact.  The negativity, falling prices, fewer buyers etc, are simply not slowing my business.  If anything, real sellers are calling me, because (if I do say so myself :), I am selling homes without too much difficulty in this market.  The difference?  Experience and skill.

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$1 Reserve and No Reserve auctions

Posted by Steve Koerber on May 31, 2008

Yesterday (31 May 2008) a West Auckland home went under the hammer with a $1 reserve price and fetched $395,000.  The owner had paid $400,000 for it 12 months earlier.  At the time of writing this post, many owners who purchased 6 or 12 months earlier are selling for 5 – 10% below their original purchase price.  Many sellers who are pricing their homes just above what they paid 12 months ago are not receiving any offers and are experiencing (and arguably contributing to) a “slower” market.

Since 1999 I have conducted two “no reserve” auctions.  Both of them were very well attended and both properties sold for good prices, very close to vendor “hope” prices.  If marketed widely, no reserve (or $1 reserve) auctions are a great way to sell.  I know of another “no reserve” auction that sold for a good price also.

Every time I hear “no reserve” auctions discussed, I hear people say “they’re not for the faint-hearted”.  Based on the results I have observed, I would have to disagree.  They work well.

Has anyone heard of a “no reserve” or “$1 reserve” property auction that has failed dismally?  

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