Home Inspection News – Issue 44

November Real Estate Stats

It is 12 1/2 years ago, back in March 2007 when there were as many sales in one month across New Zealand. The number of sales was just short of 10,000 for the 30 days of November. Prices too continued to rise in November.

For New Zealand the median house price has increased 18.5% in the last 12 months. It took an average of only 29 days to sell. In Auckland the market was exceptionally strong with sales
numbers up 16.1% compared to October and up a massive 54% compared to November 2019.

Auckland’s median selling price was up 3.0% in the last month and up 16.4% in the last 12 months. It took an average of 30 days to sell in Auckland in November 2020. The median house price increased to new record highs in 11 of the 16 regions in New Zealand.

The Regions that saw increases were:

Tasman $774,000 up 28.0% in the past 12 months.

Manawatu / Wanganui $503,000 up 25.8% in the past 12 months.

Southland $395,000 up 23.6% in the past 12 months.

Taranaki $496,000 up 21.7% in the past 12 months.

Marlborough $585,250 up 19.4% in the past 12 months.

Bay of Plenty $753,000 up 18.4% in the past 12 months.

Auckland $1,030,000 up 16.4% in the past 12 months.

Wellington $790,000 up 14.5% in the past 12 months.

Waikato $670,000 up 13.2% in the past 12 months.

Canterbury $526,000 up 13.1% in the past 12 months.

Nelson $670,000 up 9.8% in the past 12 months.

The LVR (loan to value ratio) or percentage of deposit a buyer needs to get a mortgage will be going back to 20% in March 2021 according to the reserve bank. It has now become apparent that both investors and first home buyers will be subject to LVR restrictions. The trading banks (those that lend you money as a mortgage) in New Zealand have already started to apply the LVR restrictions.

The only sure way to slow house price increases is to build more houses and lower the compliance costs of building them. To subdivide a section into 2 sections on 2 titles in Auckland costs around $150,000. That is before the building even begins. 5 to 6 years ago it cost around $100,000. While these compliance (levies etc) continue to rise house prices are unlikely to come down any time soon.

Painting the House Exterior 

A lot of people paint the house exterior to add to curb appeal when selling. The main other and real reason should be to prevent longer term more expensive repairs and repaints. Most professional painters will tell you the key to a good paint job is preparation of the surface to be painted.

Its only when preparing to repaint and the close attention involved that a lot of the repairs are found. Finding repairs early such as rotten timber, rusting metal, cracked plaster means repairs are smaller, easier and far less expensive to fix. The savings can be massive, small cracks in the plaster in the monolithic cladding if not fixed early can lead to water entering the timber framework.

monolithic-cladding-failure

If untreated timber (early 1900’s – early 2000’s) was used, rot and mould can destroy the timber in just a few years – eg 3-7 years. This all happens out of sight. Repairs costing hundreds of thousands of dollars can result. As soon as even very small cracks appear – clean out the cracks, seal with sealant and paint with the appropriate flexible paint systems.

Even when no cracks are apparent a repaint of the whole exterior of a monolithic home every 3-4 years is a great insurance against future problems.

Roofs

Iron roofs will rust and concrete roofs will loose their surface finish, absorb water and become very heavy. Heavy concrete tiles crack and put a lot of stress on the roof framing. Regular maintenance and painting not only make the roof look good it saves a lot of money over the years.

Weatherboards

Wooden weatherboards will rot if not well maintained with paint (or stain for cedar). Washing the house exterior with a low pressure (not high pressure water blasting) will extend the life of the paint system by several years.

The build up of dirt, moss, lichen and mould holds water and more which rapidly breaks down the paint protective covering. Timber weatherboards should be repainted every 10 years or so after careful preparation such as water blasting and sanding.

Filling with sealant or replacing any damaged areas before applying two coats of good quality paint. Well looked after weatherboards will last for hundreds of years. We already have examples of 150 year old homes in great condition. One final point. As the major expense in painting is the preparation, use only top quality paint.

The difference may be only a few hundred dollars on a $10,000 full repaint but gives you 3-4 more years of useful life. Paint not only makes the house look good, it protects your investment too.