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Mortgagee listings edge up to fresh record in last week
Listings for mortgagee sales on trademe and realestate.co.nz edged up to a record high 616 in the last week from 606 last Monday, our survey of these websites found. This is more than treble the levels seen when we started the survey in March last year.
The proportion of mortgagee listings as a percentage of total listings rose to 0.57% from 0.56% as the total listings on both sites fell marginally to 107,647.
Our 'stress' index, which measures the proportion of listings that use the phrases 'motivated', 'desperate', 'urgent' and 'must sell' is near record highs at around 6.2% of all listings.
Mortgagee listings in Auckland fell slightly to 322 from 325 the previous week, meaning the growth in listings in the last week came from outside Auckland.
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Most people reading this article
Most people reading this article will assume that there are 616 individual properties advertised for mortgagee sale at present, which is simply not true.
I had a look at the actual listings last week and left a comment there.
It turns out only about 10% of trademe listings are genuine mortgagee sales that are not already listed on realestate.co.nz.
On top of that over 50 ads were agents trying to get extra views by adding the word 'mortgagee' in the text.
On the plus side for your numbers, simply searching under residential for sale on realestate.co.nz actually underestimated the number of residential listings on that site by 50% because 'sections' and 'lifestyle' needed to searched separately.
And then there were several developments up for mortgagee which had multiple sections or apartments offered individually, which represented the foreclosure of only one developer.
Add all that together and last week the properties advertised represented just 419 mortgages getting called in rather than the 606 you reported last week.
Of those just over 300 were actively marketed (scheduled tender or auction in the next month or so). The rest were listings that had been sitting on the market for several months or up to a year.
So the one interesting point from all of this is that since the clearance rate for dwellings at mortgagee is actually very high at present (well above 80% for the ones I've attended recently) then with 60+ dwellings coming to the market as mortgagees each week and probably a few of the stale listings selling then somewhere between 50 and 70 properties are probably being sold as mortgagee each week. And with under 4000 houses selling each month at present, that means somewhere between 5 and 7.5% of current sales will be by the mortgagee.
That would be a more interesting figure to know - something a little investigative journalism could easily discover - especially since many of the larger firms have live webcasts from their auction rooms.
ChrisJ You make some excellent
ChrisJ
You make some excellent points. You're right. We combine the listings and there will always be some duplication. But as you point out, there are also multiple apartment listings, section listings and lifestyle listings that our searches don't pick up.
You make a good point about the relatively high number of sales that are mortgagee sales. We hadn't thought of that.
I like the idea of watching the live webcasts. We'll think about doing that, but I'm a little wary of the time committment involved. Although, I suspect there is plenty of interest in the results.
I welcome readers thoughts on whether they'd like the auction results in such a live way .
cheers again ChrisJ
Bernard
Bernard, I can't think of
Bernard,
I can't think of a better way of gauging current interest and actual sales than auctions.
After all a(u)ctions speak louder than words.
A very good idea if it can be implemented.
Definitely the yellow canary of the housing market in my opinion.
Regards
from the coal face
<i>I welcome readers thoughts on
I welcome readers thoughts on whether they'd like the auction results in such a live way
Yes.
just post a review each
just post a review each week of baileys barfoots etc mortgagee auction results, with address 2008cv, last sale price and auction result obtained
several people do this on www.housepricecrash.co.uk
these results will speak the truth about the mortgagee market more then listings do...