Perspective with Heather du Plessis-Allan: Spare a thought for Aucklanders today

It is as expected - if our office is anything to go by, Auckland is a miserable town today because the house valuations are out, and they're bad.

Just about everyone has jumped on the computer to have a look by now, I'd say, and just about everyone's house has gone backwards.

So my house - it's gone down in value by 8 percent. One of the bosses, not too bad, only gone back by 4 percent. I don't think anyone's house has gone up in the office. Someone's house has dropped by $250,000.

One colleague, and this colleague is suffering more than anybody else - her house has gone down by 21 percent. That's $1.15 million down to $900,000. That's another $250,000 shaved right off right there. Someone's feeling agitated.

I called a real estate agent today to see if it's wider than just our office. They told me, yep - and people are not happy.

Another real estate agent reckons he's already fielding calls from buyers who are mid-negotiation, who are now saying they're not gonna lift their offer anymore.

They're just gonna leave it right where it is, because look at the valuation that's out today. 

Auckland Council says they normally have about 500 people on their website at any one time. When we called, they said they were watching 12,000 people on their website at any one time.

As I said yesterday, spare a thought for Auckland. If you have an Aucklander in your life, spare a thought for them because it's a tough day for Auckland today.

Because, I mean, we take the mickey out of Auckland, but there is good reason why Auckland feels like this. 

Houses in Auckland mean a lot, don't they?

I feel like probably more than anywhere else in the country apart from maybe Queenstown and the surrounding area, because houses are expensive in Auckland.

Young Aucklanders obsess about it. They scrimp and they save, and they try so bloody hard to get into their first house. It's totally understandable that absolutely no one in this town wants to watch their house then go down in value.

But of course, bear in mind, it is slightly irrational. If you are one of these Aucklanders doing this, you are being irrational, you realize that, because you're not suddenly poorer today than you were yesterday, are you?

I mean, the value of the thing has not changed overnight. It's simply just been written down. In fact, it was written down a year ago, it's just taken them a year to put it out there.

And if you're buying and selling in the same market, it really doesn't matter at all. It's only if you're cashing up to move out of town or to get rid of an investment property or something like that, that this actually matters.

Now, I say that knowing that none of that is gonna sink in - we're gonna continue to be irrational because it is all in our heads, isn't it?

We feel wealthier when the house is worth more, and that ain't what happened today.

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
It is as expected, if our office is anything to
go by, Auckland is a miserable town today because the
house valuations are out and they are bad. Just about
everyone has jumped on the computer to have a look
by now, i'd say, and just about everyone's house has
gone backwards. So my house, our house, it's gone down
in value by eight percent. One of the bosses, not
too bad, only gone back by four percent. I don't

(00:37):
think anyone's house has gone up. In the office, someone's
house has dropped by two hundred and fifty thousand dollars.
One colleague, and this is this colleague is suffering more
than anybody else. Our house has gone down by twenty
one percent, that's one point one five million down to
nine hundred thousand dollars. Has another two hundred and fifty
thousand dollars shaved right off right there. Someone some worne's

(00:59):
feeling agitated. I called a realistate agent today to see
if it's wider than just our office. They told me yep,
and quote, people are not happy. Another realist that agent
and this is Rawden Christy, who are gonna have a
chat too later reckons he's already fielding calls from buyers
who are mid negotiation, who are now saying they're not
going to lift their offer anymore. They are just gonna
leave it right where it is, because look at the

(01:19):
valuation that's out today. Auckland Council says they normally have
about five hundred people on their website at any one time.
When we called, they said they were watching twelve thousand
people on their website at any one time. As I
said yesterday, spare thought for Auckland. If you have an
Aucklander in your life, spare thought for them. Beginn It's
a tough day for Auckland today because I mean, we

(01:42):
take them Mickey out of Auckland. But there is good
reason why Auckland feels like this. Houses in Auckland mean
a lot, don't they. I feel like, probably more than
anywhere else in the country, apart from maybe I suppose
Queenstown and the surrounding area. Because houses are expensive in Auckland.
Young Aucklanders obsess about it. They scrimp and they save,
and they try so bloody heart to get into their

(02:02):
first house. It's totally understandable that absolutely no one in
this town wants to watch the house then go down
on value. But of course, bear in mind it is
slightly irrational. If you are one of these Aucklanders doing this,
you are being irrational. You realize that because you're not
suddenly poorer today than you were yesterday, are you? I mean,
the value of the thing has not changed overnight. It's
simply just been written down. In fact, it was written

(02:23):
down a year ago. It's just taken them a year
to put it out there. And if you're buying and
selling in the same market, it really doesn't matter at all.
It's only if you're cashing up to move out of
town or to get rid of an investment property or
something like that, that this actually matters. Now, I say
that knowing that none of that is going to sink,
and we're going to continue to be irrational because it
is all in our heads, isn't it. We fell wealthier
when the house is worth more, and that ain't what

(02:45):
happened today.

Speaker 1 (02:46):
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