Home values have surged in Kapiti, with new property valuations confirming our slice of paradise is in high-demand and a desirable place to call home.
The average house price is now $541,500—up 37 per cent from 2014, but communities like Otaki and Waikanae Beach have seen property values soar by at least 45 per cent.
It’s no secret that house prices are riding high on the extraordinary rate of development happening here, particularly with the Kapiti Expressway to the north and Transmission Gully to the south. These new values reflect what’s been happening in the local housing market in recent years.
What do the new values mean for homeowners?
Your rateable house valuation (or RV) is important because it’s often the first key piece of information that buyers use to determine the price or value of a house. Quotable Value is responsible for setting a property’s RV. Banks use RV’s (amongst other tools) to help assess criteria when lending money on an existing or new mortgage.
Does a higher value mean higher rates? Councils do use property values to help guide rates. The Kapiti Coast District Council has said they’re reviewing the impact of the new values and housing affordability across the region before making any decisions. As a general rule, however, if a house’s value has gone up rates will generally rise, if a house’s value has gone down, any rate rises will be lower than average.
What about the benefits? A home that’s worth more has higher equity—making it easier to get funding for home improvements or any other projects you’ve been considering.
Aren’t happy with the valuation? You have the right to ask for a review.
What do the new values mean for buyers?
While the new valuations are a better reflection of market conditions, they are still a guide so it shouldn’t change the overall situation around pricing much. We always recommend that you do your own internal calculations about what a house is worth and not solely rely on the RV.
The new values may make it easier for existing owners to gain finance and additional lending—previously a bank might have been reluctant to greenlight loans based on a RV not reflecting the true equity position of the borrower. So in some instances the new RV’s may help borrowers obtain further leverage.
If you have any questions about the new property valuations get in touch—from looking to buy or make the most of your new equity, we’re more than happy to help.