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 ‚ÄúAuckland house prices falling by $100 per week‚ÄĚ.¬† 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 Р2007 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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