Hot suburb CVs ‘out of whack’
Find out what your Auckland Council property valuation could have been
Beachside residents in Omaha would have been — depending on your point of view — the biggest winners or losers had Auckland Council calculated new capital values for every city home this year as planned.
New data showed Omaha home values had jumped $281,000 in the three years since the council last calculated Auckland CVs on July 1, 2017.
That could have been good news for residents planning to sell and bad news for those staying put, according to a mock CV estimate of Auckland suburb values by analysts CoreLogic for the Herald of Sunday.
Those with no intention to sell would likely have faced a higher Auckland Council rates bill.
Luckily for them, council has instead sought permission to delay its new citywide CV estimates until next year.
Point Wells and Omaha Mike Pero Real Estate agent Angela Wains said CV estimates in her hot suburbs were completely out of date.
“I explain to people when they are purchasing here to literally ignore the CV because some of them are so far out of whack,” she said. “I’ve sold a home for $6 million that had a $4m CV.”
Yet modest price rises were more typical for the rest of Auckland.
Close to 90 per cent of the 242 Auckland suburbs in the Herald on Sunday and CoreLogic mock CV estimate had gone up in value as of July 1, 2020, from CVs three years ago.
The average price jump in these suburbs was $48,562.
Most of the biggest price jumps were in rural and fringe suburbs. Exclusive Whitford had the second-highest price jump in dollar terms — up $262,500 to $2.48m, from its 2017 CV estimate.
Point Wells came in next, up $249,600 to a $1.39m median, followed by rural Kingseat, near Papakura, up $182,500 to $1.36m.
More centrally, Devonport jumped $68,000 to $1.59m, while Mt Albert and Morningside both jumped $66,000 to $1.15m and $1.13m respectively.
When it came to the losers Herne Bay was the highest-profile suburb to experience a drop.
Mock values there fell $48,500 from 2017 CV to $1.65m. That was second only to Shamrock Park near Botany, with its lifestyle blocks down $82,000 to $1.89m.
Epsom had the third-biggest drop with prices falling $39,500 to $1.59m.
Council had sought to delay this year’s CV calculations, arguing that attempts to estimate home values in the uncertain Covid-19 market could produce distorted results that might be unfair to home owners.
A year’s delay would give the market time to normalise, council chief economist David Norman earlier said.
It comes as Auckland’s housing market has bounced back from the lockdown with realtors and brokers reporting they are flat out trying to help buyers get into new homes.
However, CoreLogic senior property economist Kelvin Davidson cautioned that house prices were likely to weaken later this year.
That was due to the Government’s scheduled end of wage subsidies on September 1 and uncertainty created by New Zealand’s general elections a few weeks later, he said.
● To find out your suburb’s mock CV, go to nzherald.co.nz/property