Ray White Warkworth
White Light Market Report - November 2011 Issue
What a furore the new valuations have created around the region.
At the end of October, Auckland Council posted out to each property owner in the region a copy of the revaluation of their property or properties. The valuation is used by council for rating purposes and is purported to reflect the probable market price for a property as at the effective date of the valuation, in this case being July 1, 2011.
The revaluations were carried out with the assistance of Quotable Value (QV) and are a mass appraisal valuation of properties, which means that few properties are actually inspected, thus huge variances can often occur. Often, improvements that have been carried out are not included in the appraisal and this can have a significant bearing on the price a property might fetch on the market. This is the scenario occurring in Christchurch right now, where the government is assessing compensation based on the current CV of a property and not allowing for improvements that have been carried out since the last CV was assessed.
Since the last revaluations were carried out, for what is now the Rodney Ward of Auckland Council, there has been a global financial crisis around the world. There have been major shifts in most assets, including housing, in the post-global financial crisis and, whereas valuation exercises over the last few decades have normally seen property prices increase in value, this time we have seen some properties decrease in value.
Over 1500 homeowners, so far, are objecting to the latest revaluation. In Rodney, the previous revaluation was carried out in 2007 which was at the peak of the market, so it was inevitable that a degree of downward adjustment would have to occur considering how the real estate market has performed since that peak.
In our assessment the new CV’s are far more indicative of the actual market values or properties, particularly in the Warkworth, Snells Beach/Algies Bay areas. Regular readers of White Light will recall comments we have made over the last three years, regarding sales that were being made, and their sale price compared to the previous CV of 2007.
Never-the-less, there will be anomalies due to the mass valuation process, as explained earlier.
After the previous two revaluations in 2004 and 2007, we discovered many instances where the assessed CV’s ranged from 60 percent below the ‘current market value’, at the time, to 60 percent above.
Owners wanting a more correct guide as to what the current market value of their property is worth should either pay for a valuation from a Registered Valuer, or ask a reliable real estate agent.
The definition of ‘Market Value’ obtained to PINZ standards 2006 is:
“The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.
On the local front there has not been any significant change in the real estate market over the last month.
Numbers of residential sales have remained fairly constant over the last quarter dipping just slightly to 31 for October. This is consistent with the August and September numbers of 33 and slightly up on the October 2010 figure of 29. October 2009, was quite different however, with 48 sales made—a number which eclipses the best month experienced so far in 2011 (March—45).
Rural/Lifestyle sales numbers have continued at just 7 per month since July, however this was better than the October 2010 result which had dipped to 5. As we have written in earlier newsletters, the rural and lifestyle sector of the market has been the worst affected over recent years and unfortunately there are no optimistic signs of this changing in the near future.
Omaha and Warkworth township have been the most consistent performers over the last year or so, with sales in Snells Beach lagging, however, the last three months have seen a significant shift with sales numbers in Snells Beach improving and outscoring other areas. The majority of these sales have been in the under $400,000 bracket.
Of the twenty-six dwellings that have sold in the bay over the last 3 months, twenty of them (77 percent) have been for $401,000, or under. Six (23 percent) have sold for under $300,000. An interesting little table below shows the total number of sales of dwellings in Snells Beach for the same period for 2011, 2010, 2007 and 2006 and the numbers and percentages under $300k and $400k.
The table illustrates the affect the global crisis and the recession within our domestic economy has had on prices within Snells Beach. On a market such as what we experienced during the early/mid 2000’s one would have expected that the number of lower priced houses selling would have dropped, as prices rose, however the opposite has been the case here.
Another interesting little statistic is that six of the last twenty-six sales in Snells Beach, have been re-sales in the last 5 years and of the six, four have been for prices lower than their last sale price! Some people, at least, are accepting what the market is and are just getting on with their lives.
Number of residential and rural sales 2010 and 2011 
Residential house sales for North Rodney - October 2011 RS = Residential Section X/L = Cross Lease
| Property Address | Sale Price | Days on Market | Bedrooms | Land Area M2 | 2007 CV | 2011 CV | Last Sale Price | Year | |
|---|---|---|---|---|---|---|---|---|---|
| Algies Bay | Athol Pl | 495,000 | 59 | 3 | 606 | 560,000 | 193,000 | 2002 | |
| Willjames Ave | 690,000 | 46 | 4 | 1,208 | 560,000 | 500,000 | 145,000 | 2004 | |
| Willjames Ave | 875,000 | 18 | 3 | 809 | 780,000 | 700,000 | 298,000 | 1995 | |
| Kaipara | Kaipara Coast Hwy | 155,000 | 809 | ||||||
| Leigh | Leigh Rd | 405,000 | 921 | 4 | 921 | 540,000 | 510,000 | 465,000 | 2005 |
| Matakana | Riverglade Ln | 605,000 | 43 | 3 | 1,174 | 590,000 | 550,000 | 565,000 | 2011 |
| Whitmore Rd | 910,000 | 36 | 3 | 1,503 | 790,000 | 730,000 | 400,000 | 2009 | |
| Omaha | Dungarvon Pl | 687,000 | 10 | 3 | 557 | 655,000 | 610,000 | 660,000 | 2007 |
| Paraine Pl | 880,000 | 71 | 4 | 551 | 850,000 | N/A | |||
| Shamrock Cres | 845,000 | 13 | 4 | 557 | 830,000 | 750,000 | 225,000 | 1997 | |
| The Southern Isle | 2,256,000 | 33 | 3 | 807 | 2,350,000 | 2,250,000 | 2,300,000 | 2006 | |
| Point Wells | Harbour View Rd | 605,000 | 51 | 5 | 809 | 745,000 | 770,000 | 48,000 | 1985 |
| Point Wells Rd | 750,000 | 235 | 4 | 1,507 | 820,000 | 750,000 | 156,500 | 2003 | |
| Point Wells Rd | 430,000 | 92 | 1 | 1,189 | 450,000 | 405,000 | 170,000 | 1998 | |
| Riverside Dr | 750,000 | 60 | 4 | 1,191 | 1,025,000 | 920,000 | 385,000 | 1997 | |
| Sandspit | Creek St | 650,000 | 29 | 3 | 4,518 | 650,000 | 500,000 | 2003 | |
| Snells Beach | Cornel Circle | 310,000 | 160 | 2 | 1,125 | 300,000 | 265,000 | 137,500 | 1996 |
| Ferndale Dr | 305,000 | 149 | 3 | 809 | 350,000 | 174,000 | 2001 | ||
| Hampton Mews | 575,000 | 397 | RS | 8,063 | 570,000 | N/A | |||
| Muncaster Rd | 200,000 | 5 | RS | 598 | 225,000 | 225,000 | N/A | ||
| Piccadilly Circus | 810,000 | 38 | 4 | 509 | 445,000 | 510,000 | 500,000 | 2009 | |
| Rangimaarie Cres | 400,000 | 39 | 2 | 809 | 295,000 | 415,000 | 475,000 | 2007 | |
| Tara Pl | 425,000 | 2 | 3 | 673 | 435,000 | 256,000 | 1997 | ||
| Tara Pl | 472,500 | 67 | 5 | 668 | 495,000 | 435,000 | 176,000 | 1997 | |
| Warkworth | Ashmore Cres | 440,000 | 38 | 2 | 392 | 470,000 | 275,000 | 2001 | |
| Bertram St | 500,000 | 199 | 3 | 809 | 425,000 | 380,000 | 225,000 | 2003 | |
| David Williams Pl | 435,000 | 33 | 3 | 603 | 435,000 | 390,000 | 529,000 | 2007 | |
| Pulham Rd | 250,000 | 47 | 2 | 809 | 330,000 | 280,000 | 150,000 | 2003 | |
| Wellsford | Port Albert Rd | 318,750 | 22 | 3 | 815 | 375,000 | 320,000 | N/A | |
| Rodney St | 220,000 | 429 | 2 | 819 | 270,000 | 215,000 | 180,000 | 2004 | |
| Worker Rd | 495,000 | 160 | 3 | 1,912 | 116,000 | 155,000 | 2006 | ||
Rural house sales for North Rodney - October 2011
| Property Address | Sale Price | Day on Market | Area (Hectares) | Description | 2007 CV | 2011 CV | Last Sale Price | Year | |
|---|---|---|---|---|---|---|---|---|---|
| Matakana | Leigh Rd | 350,000 | 235 | 1.3010 | Home | 580,000 | |||
| Omaha Valley Rd | 1,400,000 | 8 | 26.000 | Bare grazing block | 1,475,000 | 1,195,000 | 2001 | ||
| Omaha | Schollum Rd | 850,000 | 132 | 1.0540 | 4 bedroom home | 905,000 | 870,000 | 282,000 | 2003 |
| Warkworth | West Coast Rd | 730,000 | 117 | 8.4900 | 860,000 | 770,000 | 550,000 | 2004 | |
| Woodcocks Rd | 680,000 | 123 | 1.70000 | 4 bedroom 320m2 iron & weatherboard home | 685,000 | 650,000 | 385,000 | 2006 | |
| Wellsford | Whangaripo Valley Rd | 472,000 | 16 | 5.4440 | 4 bedroom home | 500,000 | 435,000 | 415,000 | 2005 |
| Wharf Rd | 600,000 | 0 | 56.1000 | ||||||
Disclaimer
N.B. Market statistics based on unconditional sales recorded with REINZ during the prescribed period. In preparing this document we have used our best endeavors to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.