Capital Valuations should be dropped as as a way to price a property for the market because they're irrelevant once the market moves, according to a data expert for a valuation website.
Traditionally CVs prepared by councils are used to allocate rates, but they've also been useful starting points for potential purchasers.
However, suddenly a staggering number of houses in Auckland and Christchurch are selling below CV, Seven Sharp reported.
In one third of all Auckland suburbs - that's 50 of them - houses are now worth less than their CV. They're also worth less than the CV in nine Christchurch suburbs.
Tom Lintern, chief data scientist for homes.co.nz, said historically we're used to houses selling for well above CV.
"Now we've got to get used to the fact that in some areas houses are selling for less."
Councils only publicly release CVs every three years. So, in a market that's changing so rapidly, and with some house prices being so unexpected, council valuations fast become out of date.
Mr Lintern said CVs are "relevant at the time that they're released, but quickly become irrelevant as the market moves".
Asked is this the death of the CV as a way to price the property for market, he said: "I think it should be."
His advice is to use council CVs as soon as they're released, and after that compare free valuations which are available at a number of places online.
"The more up to date information, so the value of a home right now, is good for both buyers and sellers. It evens the playing field and the data is transparent for all," Mr Lintern said.