Modest home value increases across local market
The latest monthly QV Residential Price Movement Index shows that nationwide residential values for April have increased 8.4% over the past year, and 0.2% over the past three months. This means they are now 13% above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 6.8% and values remain below the 2007 peak by -2.9%.
Andrea Rush QV National Spokesperson said, “New Zealand property values took a downward turn last month and predictions were that this would level out, but instead the trend show values are starting to increase again.”
“The nationwide index for April shows values accelerating at a similar rate to last year.” “First home buyer numbers picked up in the month of March at a New Zealand wide level and across all regional markets according to CoreLogic NZ data.”
“This would lead us to believe that the LVR changes have resulted in only small changes to the number of sales made to first home buyers and could indicate that they are now finding alternative ways to finance property.”
Local region just below 2007 peak
Values across the Wellington Region as a whole are up 0.6 % over the past three months. 2.8% year on year and are sitting at 0.1% below the 2007 peak. QV Valuer, Kerry Buckeridge said, “Buyers who have been in the market for property for some time are now knuckling down to make some decisions so that they have time to lock in a good interest rate before further rate rises.” “There is no lack of supply in most of Wellington and the excess of choice often leads to slower decision-making from potential buyers.”
IT’S IMPORTANT TO UNDERSTAND YOUR BUILDING CONTRACT
In a recent High Court case a couple had engaged a builder to build their new house. After they had made several progress payments on the build, they received a payment claim from the builder for the final amount owing under the contract.
Under their building contract, the couple needed to serve a payment schedule on the builder within a certain timeframe setting out the matters in dispute if they wanted to dispute the builder’s claims. The couple was not happy with the amount of the builder’s claim, and they also believed they had a counterclaim against the builder for defective building work.
However, because they did not serve the payment schedule on the builder within the timeframe provided in the contract, the builder was able to claim not only the full amount originally claimed under the contract, but also interest and debt recovery costs.
This case is an important reminder to ensure you understand your building contract, and know what to do if things go wrong and/or you are not happy with the build.
You should also be aware that if your building contract does not specifically provide a timeframe for you to dispute an amount owing, under the Construction Contracts Act you need to provide a payment schedule within 20 working days.
Claire Tyler (nee Coe) Rainey Collins Lawyers www.raineycollins.co.nz and follow us on Twitter @RaineyCollins