1 00:00:05,600 --> 00:00:05,960 Speaker 1: Hilda. 2 00:00:06,040 --> 00:00:09,280 Speaker 2: I'm Chelsea Daniels and this is the Front Page, a 3 00:00:09,360 --> 00:00:17,240 Speaker 2: daily podcast presented by The New Zealand Herald. Rates have 4 00:00:17,480 --> 00:00:21,560 Speaker 2: increased across the country this week, with some cities better 5 00:00:21,600 --> 00:00:25,560 Speaker 2: off than others. Auckland Council has confirmed a five point 6 00:00:25,640 --> 00:00:30,040 Speaker 2: eight percent average residential rates increase, the same day that 7 00:00:30,160 --> 00:00:35,199 Speaker 2: Wellington's council struck a twelve percent lift in their rates. Meanwhile, 8 00:00:35,240 --> 00:00:39,440 Speaker 2: Gisbon residents face an average nine point ninety five percent 9 00:00:39,560 --> 00:00:42,720 Speaker 2: rate increase, which equates to about four hundred dollars or 10 00:00:42,800 --> 00:00:46,760 Speaker 2: less for eighty percent of homeowners there, and the increases 11 00:00:46,760 --> 00:00:50,559 Speaker 2: have come at the same time as council valuations in 12 00:00:50,600 --> 00:00:55,800 Speaker 2: Auckland dropped by nine percent. But what do lower cvs 13 00:00:55,840 --> 00:00:58,920 Speaker 2: mean for your rates bill and what does it mean 14 00:00:59,040 --> 00:01:02,800 Speaker 2: in the context of the wider property market Today? On 15 00:01:02,840 --> 00:01:06,880 Speaker 2: the front Page, opuh's partner's economist Ed McKnight is with 16 00:01:07,040 --> 00:01:11,200 Speaker 2: us to bust some myths about valuations, rates and the 17 00:01:11,280 --> 00:01:19,960 Speaker 2: current state of the housing market. Ed, we've seen a 18 00:01:20,040 --> 00:01:24,680 Speaker 2: variety in rates increases around the country, which mostly all 19 00:01:24,720 --> 00:01:27,480 Speaker 2: came in effect at the start of the month. What 20 00:01:27,520 --> 00:01:29,839 Speaker 2: are some of the trends that you've seen this year. 21 00:01:30,680 --> 00:01:33,479 Speaker 1: Well, the most interesting thing is some areas aren't seeing 22 00:01:33,880 --> 00:01:37,080 Speaker 1: massive rates increases, like place like Wanganu we are only 23 00:01:37,200 --> 00:01:40,480 Speaker 1: up two point two percent. Auckland that are actually below 24 00:01:40,560 --> 00:01:43,600 Speaker 1: average as well, up about five point eight percent. But 25 00:01:43,760 --> 00:01:47,240 Speaker 1: some council areas have really ramped up rates. Down on 26 00:01:47,319 --> 00:01:50,560 Speaker 1: the West Coast, we've seen regional rates go up over 27 00:01:50,600 --> 00:01:54,800 Speaker 1: twenty five percent. My understanding is that Hastings Napier are 28 00:01:54,840 --> 00:01:57,360 Speaker 1: all up over twenty percent as well. Pretty easy to 29 00:01:57,440 --> 00:02:00,920 Speaker 1: understand why, given that they've had some really big issues 30 00:02:00,960 --> 00:02:04,720 Speaker 1: with weather related events recently. But even areas like Kluther 31 00:02:04,840 --> 00:02:08,000 Speaker 1: District way down South and Otago they have seen massive 32 00:02:08,240 --> 00:02:09,679 Speaker 1: rates increases there too. 33 00:02:10,000 --> 00:02:12,800 Speaker 2: And the rates increase that's come for Auckland is a 34 00:02:12,800 --> 00:02:19,000 Speaker 2: few weeks after homeowners received their council valuations. Now what 35 00:02:19,240 --> 00:02:22,160 Speaker 2: is this CV and what does it mean for your 36 00:02:22,200 --> 00:02:23,000 Speaker 2: house price? 37 00:02:23,919 --> 00:02:25,920 Speaker 1: Yeah, it's real interesting. A lot of people are quite 38 00:02:25,919 --> 00:02:28,880 Speaker 1: surprised that they've got their new CV. Their house value 39 00:02:28,880 --> 00:02:31,919 Speaker 1: appears to drop, but they're still paying a higher rates bill. 40 00:02:32,360 --> 00:02:34,880 Speaker 1: And what you've got to understand is that your house 41 00:02:34,919 --> 00:02:38,200 Speaker 1: price doesn't necessarily impact the exact amount of rates that 42 00:02:38,280 --> 00:02:41,600 Speaker 1: you pay. It does, but kind of in a roundabout way. 43 00:02:41,880 --> 00:02:43,840 Speaker 1: So the way that it works is that Auckland Council 44 00:02:43,919 --> 00:02:46,600 Speaker 1: or any of the councils will say how much money 45 00:02:46,639 --> 00:02:49,639 Speaker 1: do we need to raise this year and spoiler alert, 46 00:02:49,680 --> 00:02:52,520 Speaker 1: it's more than last year, and the CV is used 47 00:02:52,520 --> 00:02:55,680 Speaker 1: to say, well, how much of a share should each 48 00:02:55,800 --> 00:02:58,720 Speaker 1: homeowner have to pay? Well, if your house is a 49 00:02:58,720 --> 00:03:02,520 Speaker 1: bit more expensive than somebody else's house, you probably have 50 00:03:02,639 --> 00:03:06,160 Speaker 1: more money, so you pay a higher share of those rates. 51 00:03:06,320 --> 00:03:08,040 Speaker 3: So even though most. 52 00:03:07,800 --> 00:03:11,320 Speaker 1: People's cvs have gone down, their house values have gone down, 53 00:03:11,600 --> 00:03:14,280 Speaker 1: what really matters is, well, how much has rules changed 54 00:03:14,400 --> 00:03:17,919 Speaker 1: compared to everyone else's. So if your house value didn't 55 00:03:17,960 --> 00:03:21,480 Speaker 1: go down by the average of about nine percent, then 56 00:03:21,720 --> 00:03:24,640 Speaker 1: you will pay a higher share of your rates of 57 00:03:24,720 --> 00:03:28,639 Speaker 1: the rates in total and get an above average rates increase. 58 00:03:28,919 --> 00:03:30,720 Speaker 2: Right, So I was doing some research and I came 59 00:03:30,760 --> 00:03:35,760 Speaker 2: across some common myths or assumptions online about rates and cvs. 60 00:03:35,960 --> 00:03:39,440 Speaker 2: One was that because property values have reduced, your rates 61 00:03:39,520 --> 00:03:41,120 Speaker 2: will reduce as well. 62 00:03:41,240 --> 00:03:43,520 Speaker 3: Is that right extically what we were just talking about. 63 00:03:43,560 --> 00:03:47,680 Speaker 1: There's another myth that councils really want house prices to 64 00:03:47,720 --> 00:03:50,839 Speaker 1: go up because then they get to charge everybody more 65 00:03:50,880 --> 00:03:53,480 Speaker 1: and more rates. But if your house value goes up 66 00:03:53,600 --> 00:03:56,440 Speaker 1: or goes down by ten percent, that doesn't mean that 67 00:03:56,480 --> 00:03:59,320 Speaker 1: the council charges you ten percent more if your house 68 00:03:59,400 --> 00:04:02,280 Speaker 1: value in or charges your ten percent less because the 69 00:04:02,320 --> 00:04:04,880 Speaker 1: house value has gone down. It's all about what is 70 00:04:04,960 --> 00:04:08,280 Speaker 1: the share of rates that you pay, and the cvs 71 00:04:08,320 --> 00:04:11,080 Speaker 1: are just the mechanism to make sure that people who 72 00:04:11,120 --> 00:04:14,600 Speaker 1: have more money and can afford more expensive houses end 73 00:04:14,680 --> 00:04:15,840 Speaker 1: up paying a higher share. 74 00:04:16,240 --> 00:04:19,240 Speaker 2: Is that a bit of an old school assumption though, 75 00:04:19,720 --> 00:04:22,280 Speaker 2: just because you live in a real snazzy house that 76 00:04:22,320 --> 00:04:25,120 Speaker 2: you've presumably got more money to pay rates. 77 00:04:25,480 --> 00:04:28,360 Speaker 1: I think it's probably quite a simple way about going 78 00:04:28,400 --> 00:04:30,840 Speaker 1: about it, because there are lots of different ways that 79 00:04:30,920 --> 00:04:33,960 Speaker 1: you could decide, well, who pays more, who pays less. 80 00:04:34,240 --> 00:04:37,240 Speaker 1: I think it's a pretty fair way to go about it. Personally, 81 00:04:37,279 --> 00:04:39,919 Speaker 1: I live in an above average house, and so I 82 00:04:39,960 --> 00:04:43,279 Speaker 1: pay and above average share. I have an above average 83 00:04:43,360 --> 00:04:46,120 Speaker 1: rates bill. I kind of think that's fair. Where it 84 00:04:46,160 --> 00:04:49,279 Speaker 1: does come a little bit unstuck, as if you're a retiree. 85 00:04:49,360 --> 00:04:51,680 Speaker 1: So let's say you bought a house for a packet 86 00:04:51,720 --> 00:04:55,880 Speaker 1: of raspberries back in nineteen eighties. Now your house value 87 00:04:55,960 --> 00:04:59,960 Speaker 1: might be way way way way more expensive. Now, that's 88 00:05:00,080 --> 00:05:02,280 Speaker 1: good because you've got some more equity. But if you're 89 00:05:02,279 --> 00:05:05,280 Speaker 1: a retiree, maybe your income's gone down. But there are 90 00:05:05,480 --> 00:05:09,640 Speaker 1: targeted packages of support, like you can defer your rates bill. 91 00:05:09,760 --> 00:05:13,360 Speaker 1: If you are a retiree and you're struggling to pay it, 92 00:05:13,480 --> 00:05:15,760 Speaker 1: you can defer it and pay it once you eventually 93 00:05:15,800 --> 00:05:16,560 Speaker 1: sell that house. 94 00:05:17,000 --> 00:05:22,359 Speaker 2: Right, So, raising rates or raising property valuations, it's not 95 00:05:23,080 --> 00:05:24,400 Speaker 2: a council cash grab. 96 00:05:25,600 --> 00:05:28,240 Speaker 1: No, No, there is a I think you could say 97 00:05:28,279 --> 00:05:31,080 Speaker 1: there's a council cash grab going on in that some 98 00:05:31,279 --> 00:05:34,840 Speaker 1: areas are increasing rates by a quarter twenty five percent 99 00:05:34,960 --> 00:05:37,760 Speaker 1: because they want to spend more, so they're definitely grabbing 100 00:05:37,800 --> 00:05:41,080 Speaker 1: more cash. But it's not like the councils there being 101 00:05:41,160 --> 00:05:44,520 Speaker 1: like how can we push up house prices? Because if 102 00:05:44,520 --> 00:05:48,120 Speaker 1: we push up house prices, that naturally means that we 103 00:05:48,160 --> 00:05:51,960 Speaker 1: can charge everybody more rates. It's about the percentage that 104 00:05:52,080 --> 00:05:52,839 Speaker 1: each of us. 105 00:05:52,760 --> 00:05:57,839 Speaker 3: Pay the rates but will get. 106 00:05:58,000 --> 00:06:00,920 Speaker 1: It's not like because if you're values drop, it doesn't 107 00:06:00,960 --> 00:06:03,520 Speaker 1: mean your rate spills go down, rate bill goes down, doesn't. 108 00:06:03,520 --> 00:06:05,600 Speaker 3: It just means it increases that are stole rate than 109 00:06:05,640 --> 00:06:06,599 Speaker 3: it otherwise. Whatever. 110 00:06:07,600 --> 00:06:10,800 Speaker 4: Yeah, So pretty much, if you were If your CV foil, 111 00:06:10,920 --> 00:06:13,040 Speaker 4: say fifteen percent, you're alluded to the average there was 112 00:06:13,080 --> 00:06:16,680 Speaker 4: down about nine If your CV fel fifteen percent, you're 113 00:06:16,720 --> 00:06:18,680 Speaker 4: probably still going to see a rate spill increase, but 114 00:06:18,720 --> 00:06:21,159 Speaker 4: it might just be smaller than others. If your CV 115 00:06:21,320 --> 00:06:24,200 Speaker 4: foul five percent, you're going to see a ratespell increase, 116 00:06:24,240 --> 00:06:26,000 Speaker 4: and it may well be a little bit bigger than others. 117 00:06:26,040 --> 00:06:28,960 Speaker 4: So really this is set as at May twenty twenty four. 118 00:06:28,960 --> 00:06:32,400 Speaker 4: It's away of allocating rates across every home in Auckland, 119 00:06:33,040 --> 00:06:33,760 Speaker 4: nothing more than that. 120 00:06:36,160 --> 00:06:39,200 Speaker 2: Were you surprised by some of the revaluations. 121 00:06:39,520 --> 00:06:42,320 Speaker 1: I was surprised that some of them didn't go down more. Actually, 122 00:06:42,560 --> 00:06:46,960 Speaker 1: because the most recent rates were taken in about May 123 00:06:47,160 --> 00:06:50,479 Speaker 1: twenty twenty four, kind of mid last year is when 124 00:06:50,520 --> 00:06:53,760 Speaker 1: the current cvs that just came out were set. Certainly 125 00:06:53,800 --> 00:06:57,080 Speaker 1: in Auckland, the previous ones were set really close to 126 00:06:57,120 --> 00:06:59,800 Speaker 1: the peak of the property market, which was round and 127 00:07:00,320 --> 00:07:03,960 Speaker 1: June twenty twenty one. Well, since that point we've seen 128 00:07:04,040 --> 00:07:08,560 Speaker 1: property values in Auckland fall roughly about twenty percent. The 129 00:07:08,600 --> 00:07:12,400 Speaker 1: fact that the average CV dropped only nine percent in Auckland, 130 00:07:12,440 --> 00:07:15,680 Speaker 1: I thought, actually that's a bit less of a drop 131 00:07:15,680 --> 00:07:16,600 Speaker 1: than I was expecting. 132 00:07:17,040 --> 00:07:22,240 Speaker 2: And should renters care about CVS and rates? How does 133 00:07:22,280 --> 00:07:23,440 Speaker 2: it affect them? 134 00:07:23,880 --> 00:07:27,240 Speaker 1: Only to a very very small degree. If rates are increasing, 135 00:07:27,320 --> 00:07:30,920 Speaker 1: that means more costs on your landlord. You will see 136 00:07:30,920 --> 00:07:34,440 Speaker 1: some people say that, well, if the if landlord's costs 137 00:07:34,600 --> 00:07:37,240 Speaker 1: go up, they then pass that onto the tenants. But 138 00:07:37,280 --> 00:07:40,280 Speaker 1: at a market like we're in today, that doesn't really happen. 139 00:07:40,600 --> 00:07:43,679 Speaker 1: Renters rarely do hold the upper hand a bit because 140 00:07:43,680 --> 00:07:46,200 Speaker 1: we've got a lot of supply on the market in 141 00:07:46,280 --> 00:07:49,200 Speaker 1: terms of lots of landlords trying to find tenants, and 142 00:07:49,240 --> 00:07:51,560 Speaker 1: it's a bit slower for them at the moment they're 143 00:07:51,600 --> 00:07:53,720 Speaker 1: finding it is taking an extra week to get a 144 00:07:53,800 --> 00:07:57,160 Speaker 1: tenant in. And because of that, even though rates are 145 00:07:57,280 --> 00:08:01,560 Speaker 1: increasing in places like Auckland, you are rents tick down 146 00:08:01,840 --> 00:08:04,920 Speaker 1: a little bit. So I wouldn't be too concerned at 147 00:08:05,040 --> 00:08:07,800 Speaker 1: least in this market if I was a renter seeing 148 00:08:07,800 --> 00:08:09,000 Speaker 1: that rates have gone up. 149 00:08:09,200 --> 00:08:12,160 Speaker 2: Right, What about if you're on the market for a house, 150 00:08:12,240 --> 00:08:16,160 Speaker 2: you're looking for somewhere to buy, how do you leverage 151 00:08:16,360 --> 00:08:19,840 Speaker 2: cvs in your negotiation process? 152 00:08:19,880 --> 00:08:22,720 Speaker 1: Perhaps kind of depends what you're trying to do in 153 00:08:22,760 --> 00:08:24,120 Speaker 1: which side of the table you're on. 154 00:08:24,360 --> 00:08:25,720 Speaker 2: So it's something a bit cheaper. 155 00:08:25,880 --> 00:08:27,160 Speaker 3: Yeah, yeah, I'll. 156 00:08:26,960 --> 00:08:29,239 Speaker 1: May be a good example a Native mind was trying 157 00:08:29,280 --> 00:08:32,200 Speaker 1: to sell their property. They looked at their CV and 158 00:08:32,240 --> 00:08:36,200 Speaker 1: they thought, hmmm, we've done some renovations to this property, 159 00:08:36,280 --> 00:08:37,920 Speaker 1: so the CV looks a bit low. 160 00:08:38,360 --> 00:08:39,280 Speaker 3: I know what we'll do. 161 00:08:39,600 --> 00:08:42,280 Speaker 1: We'll go to the council and we'll try and get 162 00:08:42,280 --> 00:08:45,920 Speaker 1: that CV adjusted up and that will mean that we 163 00:08:45,960 --> 00:08:49,000 Speaker 1: pay a little bit more rates temporarily, but that will 164 00:08:49,040 --> 00:08:52,080 Speaker 1: look a bit better to the buyer because then they'll think, wow, 165 00:08:52,240 --> 00:08:54,959 Speaker 1: if the CV is up here, that means we're getting 166 00:08:54,960 --> 00:08:58,440 Speaker 1: a really good deal. And so one trick if you 167 00:08:58,480 --> 00:09:01,240 Speaker 1: are selling your property and you've done some renovations all 168 00:09:01,240 --> 00:09:03,840 Speaker 1: the market has moved up is it does cost you 169 00:09:03,920 --> 00:09:07,000 Speaker 1: the money. But if you get a registered valuation, you 170 00:09:07,040 --> 00:09:09,040 Speaker 1: can go to the council and say, hey, put my 171 00:09:09,200 --> 00:09:11,880 Speaker 1: CV up And even though it means that the next 172 00:09:11,960 --> 00:09:14,760 Speaker 1: buyer will have to pay slightly more in rates, often 173 00:09:14,800 --> 00:09:17,160 Speaker 1: that's going to help you in terms of positioning where 174 00:09:17,200 --> 00:09:18,000 Speaker 1: your property is. 175 00:09:18,240 --> 00:09:20,120 Speaker 3: That sounds a bit sneaky, ed. 176 00:09:20,960 --> 00:09:23,960 Speaker 1: Is it? It's not sneaky. The CV is the CV 177 00:09:24,360 --> 00:09:27,040 Speaker 1: an actual fact. Buyers and sellers should not really care 178 00:09:27,120 --> 00:09:29,800 Speaker 1: too much about the cvs, because they're really out of date. 179 00:09:30,120 --> 00:09:33,120 Speaker 1: Even sitting here today, the CV of my house was 180 00:09:33,160 --> 00:09:37,040 Speaker 1: set twelve months ago, so that doesn't really reflect the 181 00:09:37,160 --> 00:09:39,920 Speaker 1: value of what the property is today. But given that 182 00:09:40,080 --> 00:09:43,440 Speaker 1: some buyers and some sellers really care about the CV 183 00:09:43,840 --> 00:09:46,360 Speaker 1: and think that that's an accurate reflection of the value. 184 00:09:46,440 --> 00:09:48,480 Speaker 1: If you are a seller, if you are a buyer, 185 00:09:48,800 --> 00:09:51,400 Speaker 1: then this is about how do you position how do 186 00:09:51,440 --> 00:09:54,440 Speaker 1: you position this house to either get the price that 187 00:09:54,480 --> 00:09:56,080 Speaker 1: you want or the sale price that you want. 188 00:10:04,800 --> 00:10:08,520 Speaker 2: Looking at house prices in general, how are things performing 189 00:10:08,559 --> 00:10:12,120 Speaker 2: at the moment? I've seen reporting, including from Opus Partners, 190 00:10:12,120 --> 00:10:16,040 Speaker 2: on a two tier recovery happening around New Zealand. Can 191 00:10:16,080 --> 00:10:17,520 Speaker 2: you explain that to us? 192 00:10:17,960 --> 00:10:20,360 Speaker 1: We are seeing some parts of the country pretty much 193 00:10:20,400 --> 00:10:23,120 Speaker 1: flat or still going down. Parts of Wellington over the 194 00:10:23,200 --> 00:10:26,959 Speaker 1: last twelve months have seen property prices fall four five 195 00:10:27,120 --> 00:10:30,120 Speaker 1: in some cases up to nine percent. So we're still seeing, 196 00:10:30,480 --> 00:10:33,960 Speaker 1: especially Wellingtonian's doing it really tough. Compare that to a 197 00:10:34,000 --> 00:10:36,439 Speaker 1: place like in the cargol Over the last twelve months, 198 00:10:36,440 --> 00:10:39,280 Speaker 1: house prices up four percent since the bottom of the 199 00:10:39,400 --> 00:10:42,720 Speaker 1: market about two years ago. In the Cargo City, house 200 00:10:42,760 --> 00:10:46,600 Speaker 1: prices are up around about fifteen percent since the bottom 201 00:10:46,640 --> 00:10:50,120 Speaker 1: of the market. Dunedin's up eight percent, Queenstown's up eleven percent, 202 00:10:50,200 --> 00:10:52,680 Speaker 1: christ Church is up seven percent. So if you're sitting 203 00:10:52,679 --> 00:10:54,959 Speaker 1: here in Auckland's like i am, you're probably seeing a 204 00:10:55,080 --> 00:10:56,960 Speaker 1: very very flat property market. 205 00:10:57,120 --> 00:10:58,920 Speaker 3: But not everywhere in the. 206 00:10:58,920 --> 00:11:01,520 Speaker 1: Country is flat, and so we are in this period 207 00:11:01,520 --> 00:11:03,960 Speaker 1: where you're going to get a lot of conflicting information 208 00:11:04,360 --> 00:11:07,120 Speaker 1: about our house prices going up, are they going down, 209 00:11:07,360 --> 00:11:10,120 Speaker 1: are they staying the same. The other thing that's going 210 00:11:10,160 --> 00:11:12,680 Speaker 1: to contribute to that is that while we're in this 211 00:11:12,800 --> 00:11:16,040 Speaker 1: flat market, there are three different data providers that the 212 00:11:16,120 --> 00:11:20,079 Speaker 1: media will quote qv core Logic, which is ow called Totality, 213 00:11:20,240 --> 00:11:22,839 Speaker 1: and the Real Estate Institute of New Zealand. Because all 214 00:11:22,880 --> 00:11:26,960 Speaker 1: of these organizations release different measures, one data company might 215 00:11:27,000 --> 00:11:29,480 Speaker 1: be saying house prices are going up while another one 216 00:11:29,520 --> 00:11:31,800 Speaker 1: is saying they're going down. And we just saw that 217 00:11:31,880 --> 00:11:35,680 Speaker 1: last month where Cotality formerly core Logic, was saying yep, 218 00:11:35,720 --> 00:11:38,320 Speaker 1: house prices have ticked up zero point two percent over 219 00:11:38,320 --> 00:11:41,000 Speaker 1: the last month, and just a couple of weeks before that, 220 00:11:41,120 --> 00:11:43,360 Speaker 1: Rhymes came out and said house prices are down zero 221 00:11:43,400 --> 00:11:44,280 Speaker 1: point six percent. 222 00:11:44,920 --> 00:11:48,840 Speaker 2: Right, So when it comes to reading into those valuations 223 00:11:48,840 --> 00:11:53,120 Speaker 2: and those kind of that criteria critiques. We've got to 224 00:11:53,160 --> 00:11:56,080 Speaker 2: keep it kind of like treat it like a political 225 00:11:56,120 --> 00:11:58,880 Speaker 2: poll maybe, so pick and choose things and really look 226 00:11:58,920 --> 00:12:02,720 Speaker 2: into the data really to see what we can get 227 00:12:02,720 --> 00:12:05,160 Speaker 2: from it, rather than just taking everything verbatim. 228 00:12:05,679 --> 00:12:07,440 Speaker 3: Do you know, well, that's a really good analogy. 229 00:12:07,520 --> 00:12:09,640 Speaker 1: Never heard somebody explain it that way, But that's exactly 230 00:12:09,679 --> 00:12:11,960 Speaker 1: how you should think about it. Just like political polls 231 00:12:11,960 --> 00:12:14,880 Speaker 1: are up or down, they are just one reading. You 232 00:12:15,000 --> 00:12:17,400 Speaker 1: probably do want to look at all of the different 233 00:12:17,480 --> 00:12:20,440 Speaker 1: data sources together. The truth of the matter is the 234 00:12:20,480 --> 00:12:23,360 Speaker 1: property market is pretty flat. We are seeing that and 235 00:12:23,440 --> 00:12:26,320 Speaker 1: across a range of different measures. So I'll give you 236 00:12:26,320 --> 00:12:28,760 Speaker 1: another example. It's not just house prices that are pretty flat. 237 00:12:29,240 --> 00:12:32,640 Speaker 1: New build dwelling consents have basically flattened out and have 238 00:12:32,800 --> 00:12:36,560 Speaker 1: for the last year to eighteen months. We're now roughly 239 00:12:36,840 --> 00:12:40,360 Speaker 1: issuing the same number of new dwelling consents that we 240 00:12:40,360 --> 00:12:43,800 Speaker 1: were back in twenty nineteen. So during the big COVID boom, 241 00:12:43,840 --> 00:12:46,920 Speaker 1: we saw this massive ramp up in construction that's now 242 00:12:47,000 --> 00:12:50,559 Speaker 1: come back and is settled down around that twenty nineteen 243 00:12:50,640 --> 00:12:53,320 Speaker 1: level housing stocks. Another one to look at. We saw 244 00:12:53,360 --> 00:12:56,000 Speaker 1: this massive ramp up of lots and lots and lots 245 00:12:56,040 --> 00:12:58,800 Speaker 1: of people listing their properties for sale over the last 246 00:12:59,200 --> 00:13:02,360 Speaker 1: year to eighteen months. That has now flattened out in 247 00:13:02,440 --> 00:13:04,959 Speaker 1: terms of the amount of housing stock. It's landed out 248 00:13:05,000 --> 00:13:07,280 Speaker 1: at a high level, but there's just a bit more 249 00:13:07,320 --> 00:13:09,760 Speaker 1: stability going on in the market at that moment. 250 00:13:11,559 --> 00:13:14,400 Speaker 5: There is an objection process for the CVS. If you 251 00:13:14,559 --> 00:13:18,040 Speaker 5: believe that the CV is incorrect for your property. Now 252 00:13:18,360 --> 00:13:20,240 Speaker 5: reasons that you might want to do this. The most 253 00:13:20,320 --> 00:13:23,800 Speaker 5: likely reason would be that the CV is significantly higher 254 00:13:23,800 --> 00:13:26,839 Speaker 5: than you would expect, which means you'd pay more rates 255 00:13:26,880 --> 00:13:30,520 Speaker 5: than you would expect, so you might want to object 256 00:13:30,559 --> 00:13:33,520 Speaker 5: to get the CV lower. The other reason is that 257 00:13:33,640 --> 00:13:37,280 Speaker 5: some parties in the market, and we wouldn't really agree 258 00:13:37,280 --> 00:13:39,439 Speaker 5: with this, but some parties do use the CV as 259 00:13:39,480 --> 00:13:41,480 Speaker 5: like a benchmark if they're selling their property, and they 260 00:13:41,520 --> 00:13:44,120 Speaker 5: might want to get it higher for that reason. Although 261 00:13:44,160 --> 00:13:48,040 Speaker 5: we would argue that better quality information means that the 262 00:13:48,040 --> 00:13:50,600 Speaker 5: cvs are less important for that purpose these days, but 263 00:13:50,840 --> 00:13:53,120 Speaker 5: put that aside, you might want to object to it. 264 00:13:54,920 --> 00:13:56,800 Speaker 2: Right when I moved to New Zealand, one of the 265 00:13:56,800 --> 00:14:00,559 Speaker 2: things I always heard about was the housing cre crisis 266 00:14:01,000 --> 00:14:03,520 Speaker 2: that was ten years ago. Granted, but it does feel 267 00:14:03,559 --> 00:14:06,360 Speaker 2: like we aren't talking about this crisis. We're not in 268 00:14:06,440 --> 00:14:10,080 Speaker 2: crisis mode these days, a thing stabilizing in terms of 269 00:14:10,120 --> 00:14:12,680 Speaker 2: those new builds and in terms of the housing market 270 00:14:12,720 --> 00:14:13,160 Speaker 2: in a whole. 271 00:14:13,280 --> 00:14:13,920 Speaker 3: Yeah, you did right. 272 00:14:13,960 --> 00:14:17,000 Speaker 1: We've moved on to about seventy five other crisis we're found. Yeah, 273 00:14:17,800 --> 00:14:20,120 Speaker 1: and it's nice to see it. Australian, come the other way, 274 00:14:20,200 --> 00:14:22,080 Speaker 1: come over the side of the tasmhen. It's great to 275 00:14:22,080 --> 00:14:22,840 Speaker 1: have you here, Chelsey. 276 00:14:23,240 --> 00:14:24,080 Speaker 2: We have of us here. 277 00:14:24,720 --> 00:14:28,280 Speaker 1: We are seeing that stability now in terms of the 278 00:14:28,400 --> 00:14:31,120 Speaker 1: level of housing stock flatted out, the level of new 279 00:14:31,160 --> 00:14:35,680 Speaker 1: build dwelling consents flatten out, house prices flattening out. It's 280 00:14:35,760 --> 00:14:37,880 Speaker 1: only when we really start to see a lot of 281 00:14:37,920 --> 00:14:41,720 Speaker 1: inflation house prices skyrocket that we start to really call 282 00:14:41,760 --> 00:14:44,600 Speaker 1: it a crisis. I do think in five, ten, fifteen 283 00:14:44,640 --> 00:14:47,520 Speaker 1: years time there will be another cycle where it comes 284 00:14:47,600 --> 00:14:50,400 Speaker 1: back and we're talking about a housing crisis again. But 285 00:14:50,480 --> 00:14:53,640 Speaker 1: at the moment, because a lot of things are flattening 286 00:14:53,640 --> 00:14:57,080 Speaker 1: out and stabilizing, our attention is elsewhere. It is a 287 00:14:57,120 --> 00:14:59,560 Speaker 1: great time to be a home buyer right now. There 288 00:14:59,640 --> 00:15:01,640 Speaker 1: is a a lot of housing stock on the market, 289 00:15:01,760 --> 00:15:04,680 Speaker 1: more than we've had for the last about ten years. 290 00:15:05,280 --> 00:15:08,640 Speaker 1: While interest rates are coming down and so there are 291 00:15:08,680 --> 00:15:11,520 Speaker 1: there are more buyers stepping forward and saying, yes, we 292 00:15:11,640 --> 00:15:15,160 Speaker 1: are going to purchase. But that's not translating into higher 293 00:15:15,200 --> 00:15:19,640 Speaker 1: house prices, and that's not translating into fewer listings property 294 00:15:19,680 --> 00:15:22,800 Speaker 1: listings available on the likes of trade me or one 295 00:15:22,920 --> 00:15:24,480 Speaker 1: roof for real Estate dot courd Denz. 296 00:15:24,880 --> 00:15:28,920 Speaker 2: So finally, ed overall, how do you rate the health 297 00:15:29,240 --> 00:15:30,520 Speaker 2: of the housing market? 298 00:15:30,800 --> 00:15:33,040 Speaker 3: Oh, on a scale of what Chelsea? 299 00:15:33,680 --> 00:15:36,160 Speaker 2: Oh, go on, I haven't thought that far ahead. Give 300 00:15:36,200 --> 00:15:38,480 Speaker 2: it like out of ten stars or something. 301 00:15:40,560 --> 00:15:43,080 Speaker 3: I would give it like a four or a five. 302 00:15:43,600 --> 00:15:47,920 Speaker 1: It's not sick anymore in terms of house prices falling 303 00:15:48,360 --> 00:15:51,920 Speaker 1: massively and homeowner has been really worried about that. Across 304 00:15:51,960 --> 00:15:55,440 Speaker 1: most of the country, it's pretty stable across again, those 305 00:15:55,760 --> 00:16:00,000 Speaker 1: number of listings online, properties selling again, it's all pretty safe. 306 00:16:00,360 --> 00:16:01,440 Speaker 3: I'd give it four or five. 307 00:16:01,560 --> 00:16:04,840 Speaker 1: But having said that, houses are still expensive, right, so 308 00:16:05,000 --> 00:16:07,120 Speaker 1: if you were a first home buyer look at the market, 309 00:16:07,120 --> 00:16:10,280 Speaker 1: you'd say absolutely not, it's one out of ten because 310 00:16:10,320 --> 00:16:12,640 Speaker 1: I'm still struggling to purchase the House. 311 00:16:12,960 --> 00:16:14,880 Speaker 3: Thanks for joining us, ed Thanks Chelsea. 312 00:16:18,040 --> 00:16:21,160 Speaker 2: That's it for this episode of the Front Page. You 313 00:16:21,200 --> 00:16:25,000 Speaker 2: can read more about today's stories and extensive news coverage 314 00:16:25,040 --> 00:16:29,080 Speaker 2: at enzadherld dot co dot nz. The Front Page is 315 00:16:29,120 --> 00:16:32,840 Speaker 2: produced by Ethan Sills and Richard Martin, who is also 316 00:16:33,000 --> 00:16:34,080 Speaker 2: a sound engineer. 317 00:16:34,560 --> 00:16:36,080 Speaker 3: I'm Chelsea Daniels. 318 00:16:36,640 --> 00:16:39,800 Speaker 2: Subscribe to the Front Page on iHeartRadio or wherever you 319 00:16:39,840 --> 00:16:43,640 Speaker 2: get your podcasts, and tune in on Monday for another 320 00:16:43,720 --> 00:16:45,359 Speaker 2: look behind the headlines.