Fixer-upper downer

Buyers in Nelson are becoming more picky about properties that need work, data shows.

Homes that need repairs are starting to fetch lower prices in Nelson as the housing market cools, according to valuations company Quotable Value.

House values in Nelson were still growing faster than in most other parts country, up 10.5 per cent on the same time last year to an average of about $567,700, the latest monthly QV house price index showed.

Values in the Tasman District also continued to rise, up 12.9 per cent to $565,643.

The growth was driven by ‘‘strong but steady’’ demand, ‘‘particularly for homes priced at first home buyers’’, QV Nelson registered valuer Craig Russell said.

But vendors could no longer get away with deferring maintenance and repairs, with those properties being discounted, Russell said.

‘‘When the market was really hot early last year, a lot of people were putting in unconditional offers, so they were essentially cash buyers. Because there was that much demand and that much pressure, people buying just couldn’t put those [due diligence] clauses in, because someone else would just come in over the top.’’

More buyers were now asking to take the cost of repairs off the purchase price. ‘‘So a few deals are falling over because of properties that do have that deferred maintenance aspect.’’

There had been also been a drop-off in investor activity in the Nelson region due to ‘‘access to finance’’, he said.

However, lifestyle properties had seen a big increase in value, with strong demand along the Coastal Highway between Richmond and Motueka.

Houses where maintenance has been deferred are being ‘‘discounted’’ as the region’s market cools.