Daily Archives: November 28, 2011

Home Values, a bit like Coronation Street?

Nov 27th, 2011

Stoked by a suburb? Well yes, as a matter of fact, in Nelson, you can.

As the ITV cameras pan in at the beginning and again, out at the end, you used to see what looked like rows of little boxes on the hillside of Coronation Street. Many many identical little boxes. Something that must surely have made a local Valuers job just that little bit easier back then.

Guess what, Nelson in one way, has something similar.

Not exactly in TV terms, with debatable neighbours, but most definitely from a Valuers perspective.

See, the area local folk know affectionately as “Poets Corner”**, it just about presents that same Coro St equivalent property valuation opportunity.

A large subdivision that was developed & populated in the 60’s, and early 70’s it was quite unique in Nelson terms.

Why?

The why is because, picking a few streets here for example, in this instance Marlowe, Kipling, Tennyson & Dickens, I come up with the figure of 60.8% of the properties that had an identical section size, generally rectangular and always at the same 607 m2. (for those of you statistically inclined, that relates to 110 out of 181 stand alone housing sections in total ) In addition to that, another 15 had a slight 10% bump up, up to 647m2…so to be fair, they could almost be lumped into together in the scheme of things anyway. ( I suggest 125 out of 181 here)

Of these homes, well they were mixed, stucco/roughcast, weatherboard along with a bit of  the usual mixed material construction, again pretty standard fare for the times, but typically of the 110 ~ 125m2 in floor area size, all built in that same short period.

Time to bring you up to date with the suburb of Stokes importance in New Zealand, so I draw your attention to this prior news.

1. Stoke, by the official stats, post GFC , simply New Zealands best performing suburb.

2. Stoke, voted New Zealand top place to live, for the people, by the people!

And the local news, prices for homes in this Poets Corner zone of Nelson have doubled every 10 years in recent memory.

That means that they were…..

In 1975 – $30 ~ 35,000

In 1985 – $70,000

In 1995 – $140,000 (this is really an average decade price b/c the 90’s were, to put it mildly,  a trying^^ time for real estate prices in NZ)

In 2005 – $280,000 (well actually a year or two before this date in reality, because by 2005 most were more like $285,000 ~ 295,000)

In 2011 – $ approx $320-330,000.

In 2015 – $560,000??? ( hmmm….interesting)

Put simply, the figure for 2015 as an average (“median” perhaps), well it has my head spinning?

So the good news is that because we have so many similar style / size / year built homes on exactly the same size sections, we do indeed have a great local property valuation tool. It also reinforces that Stoke home prices have kept their value almost better than anywhere else in NZ over recent years 🙂

There’s a good chance in 4 years time I’ll be eating my words, my hat, whatever…….but any which way, it sure will certainly be interesting around about January 2016 summer BBQs , any discussions regarding “the past” in terms of real estate prices.

Be that as it may, history has shown that investing in real estate in Nelson is certainly not an unsure thing. There’s a track record there.

 

** called Poets Corner because of the following street names…..like  Marlowe, Kipling, Tennyson, Keats, Browning, Dickens, Shelley, Barrett, Coleridge, Wordsworth, Masefield, & Rosetti.

^^ – plenty of examples depicting folks that brought a property in 1991/92/93 sold it for the same price or even less in 97/98/99

RELATED – Beaut suburb is stoked at being NZ’s top place  – Nelson Mail 10th Oct 2010