Devonport Property Statistics Tuesday 8 February 2011
by Murray Pelham
This is an extract out of an article I was asked to write for the online newspaper "The Devonport Speculator"
Please refer to the article for the graphic representation. When utilizing the Government Valuation or more correctly the RV (Rating Valuation) for sales analysis it provides a very useful tool in ascertaining a general overview of the market. Done every three years it provides a sound base to capture the relative to market movement over this period and can also be an indicator to changes in movement in different property types. However care has to be taken in not literally utilizing this data for individual properties. For Devonport the data provided shows the RV’s within 1% of the sales for December 2010. We note however that individually some of these sales were in excess of 20% below/above the RV. This equates to a difference in value of over $200,000 in some of these cases. My advice is; do not rely upon the Rating Valuation as a basis for the biggest financial decision you are likely to make. The same applies to E-Valuer which as I understand it merely utilizes the RV and adjusts it according to recent sales; therefore is only as good as the base data it is arrived from. In Devonport because of the age of the housing stock you will generally find run down properties may be over valued (the RV) whilst renovated ones can be undervalued particularly if no Building permit was issued for work done. Properties which are not villas or bungalows also tend to be overvalued as get caught up in the general multiples of the mass appraisal computer generated data. A quick note on the Devonport market. After a very poor year in 2010 we have recently seen more recent activity in the market and sales in excess of $1M are again more prevalent. It is a matter of buyers and sellers getting the right balance in terms of value rather than hanging on to that one high sale setting the benchmark and conversely for buyers trying to get the sale of the century. There is not the same pressure applied as when the market is booming and more time is able to be taken in doing due diligence which helps ensure a fair price.
Property Market Wednesday 11 November 2009
by Murray Pelham
The North Shore residential property market has seen a lift in prices achieved in the last 3 months after a period of declining house prices since 2008.This is on the back of low volumes of sales and reductions in values in the order of 15% since the peak in late 2007.The recent increases still have not reached these highs but have given more optimism to the market place and appears to have recovered in the order of 10%(please note this is an average only and different locations can change at different rates).However the fundamentals in place mean that a full recovery may not take place for a few years with possible rising interest rates next year predicted to dampen the market.This would be in line with previous cycles. We note the last cycle took 4-5 years before a full recovery(1997-2001).
Lack of homes pushes up Auckland prices Tuesday 10 November 2009
by NZ Herald
A shortage of homes for sale has pushed Auckland's residential property values higher than they were a year earlier, QV figures show.
Auckland values for October have climbed 2.5 per cent from the same time last year, while national values for October are 0.2 per cent above last year's, up from the -1.1 per cent recorded the previous month. more...