If you've been house hunting in Auckland recently you've likely experienced a dose of sticker shock from some optimistic list prices. Despite the agents’ proclamations “the vendor’s realistic! Their bags are already packed!” when push comes to shove, some vendors are barely budging.
The reason? There are a few. Firstly, the large backlog of homes that didn’t go to market in 2022 and 2023 are only now being listed by owners who are still clinging to their late 2023 appraisals. By October 2023 we were seeing green shoots of growth in values and auctions were taking off again, with sales agents prospecting left, right and centre.
In my capacity as a buyer's agent, I'm frequently asked by vendors who the best sale's agents are and when they should go to market. Despite my suggestion to hit the early summer climb, many insisted that they wanted to wait until the election, and then the summer holidays, before listing. Throw in record numbers of Kiwis selling up and moving abroad. Surprise surprise, everyone went to market at the same time.
Many of these vendors are still anchored to those 2023 appraisals and market conditions that no longer exist. They would not accept that the supply/demand equation has shifted, and their home's value may have been impacted, even when the agents warned them.
Making matters worse, some real estate agents have been caught inflating price expectations to secure listings, leaving vendors disappointed when the truth sets in. As one agent told me, boasted in fact, “I get the listing and then I smack them down with bad news from the first viewing”. Charming.
The reality is that Auckland's market has shifted, with more choices for buyers. Vendors need to be realistic about current market values, not what an overly optimistic appraisal quoted nine months ago.
“I get the listing and then I smack them down with bad news from the first viewing”
There are still great homes selling for a fair price, especially those that are unique. I purchased a Browns Bay home for a Martelli & Co client under the hammer recently against five other competing bidders and half the community turned out to watch. The agent had priced the home well, the vendor had faith in her agent's process, and the property had mass appeal to families in Rangitoto school zone.
And of course, there are some vendors who can afford to drop $4,000 on a marketing campaign and if they don't hit their desired price, they will simply rent the home out or stay put. Then there are the vendors who do need to sell and have an unconditional buyer in the auction room but let them go for a matter of thousands and have the house on the market for weeks or months after. Quite the punt to take in this market.
For buyers this year, it means persevering through some punchy asking prices and being willing to take the risk of waiting it out. But it also means more opportunities are on the horizon.
And my crystal ball prediction? I can’t help but wonder if the homes that didn’t sell this past summer will be online with new photos again this spring, along with another wave of homes, creating more options than ever for buyers come September.
If you've been house hunting in Auckland recently you've likely experienced a dose of sticker shock from some optimistic list prices. Despite the agents’ proclamations “the vendor’s realistic! Their bags are already packed!” when push comes to shove, some vendors are barely budging.
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