Photo courtesy of Stuff.co.nz
Auckland's recent council valuations are proving a reasonable guide for house prices – for now.
Auckland Council released its latest ratings valuations this month, based on the most likely selling price a property would have fetched if it sold on July 1.
Just over three-quarters went for a price that was within 10 per cent of their new CVs.
Of those, 48 per cent were within 5 per cent of their CVs. Just 15 per cent were sold for more than 10 per cent below their CVs and 42 per cent went for prices higher than their July CVs by more than 1 per cent.
Trade Me said its sales prices in July were 1 per cent below properties' new council valuations, on average. But the valuations should not be relied on as a firm price guide.
"It's important that Kiwis see RVs as simply a snapshot estimate at a certain time rather than a price tag," said Trade Me's head of property Nigel Jeffries.
Auckland real estate agency Barfoot & Thompson said most of the properties it sold in the month were within 10 per cent of council valuation, too.
"While the rule still stands that council's rateable valuations should not be relied on as a market value for a property, we can say that the system is generally in step with the value brackets most homes would naturally fall into, had they been sold at that time," said director Peter Thompson.
Thompson said properties that sold for substantially more or less than their July rateable value were probably examples of factors that could not be accounted for in mass appraisal exercises, or a unique property that needed closer review.
"Aspects like a property's location, condition, how much sun it gets, special or unique features, the chattels included, and so on, would all have a bearing on its true market value.
"That's why if you are making a property decision we absolutely recommend requesting a professional appraisal from a real estate salesperson or investing in a registered valuation."
- Original article from Stuff.co.nz