Here is the full release from Terralink below.
Mortgagee sales have decreased in the last quarter according to the latest data, suggesting an easing of stress compared to previous quarters. Terralink International’s figures show there were 187 forced sales in New Zealand during September 2010, compared to 188 in August 2010 and 217 in July 2010.
The highest number recorded this year was 264 in May. Terralink’s Managing Director Mike Donald says while forced sales are still nearly five times higher than the pre-recession period, there was now a clear downward trend for the first time since 2008. “The latest figures show a slight drop on the month before, but it is the overall trend which is most significant. Over the last quarter we have seen an ongoing downward trend that signals, at an overall level, that the pain is easing for property owners,” says Mr Donald.
Regions experiencing the greatest drops in mortgagee sales in September 2010 were Manawatu (down 43%), Wellington (down 50%), and Canterbury (down 65%). The national trend was tempered with increases in some regions: Otago (up 22%), Auckland (up 12%), and Waikato (up 9%).
Although the total number of forced sales is trending down, Mr Donald says that increasingly, it has been individual property owners with only one property, or what we’d think of traditionally as ‘mum and dad’ homeowners, rather than property investors, who were facing forced sales. In September 2010, 24% of all mortgagee sales were for properties owned by ‘mum and dad’ homeowners.
This compares with 23% in August 2010 and 21% in September 2009. “Whilst the overall downward trend is positive, if we drill down further we not only see an increasing percentage of ‘mum and dad’ homeowners losing their only home, but the profile of the lenders forcing sales has changed too.
“As you might suspect, the vast majority of mortgagee sales through 2008 and 2009 were second tier finance companies calling on their loan defaults.
However, in 2010, it’s increasingly the first tier lenders, or major banks, forcing sales. Across 2008, only 32% of mortgagee sales were forced by first tier lenders, but in 2010 so far, first tier lenders have already forced 42% of all mortgagee sales.
“While the effects of the recession seem to be easing, our data shows that it’s increasingly ordinary Kiwi property owners losing their home. Sadly this trend is likely to continue for as long as there is a sluggish economy,” Mr Donald says.
Here is our interactive chart below of mortgagee listings (as opposed to mortgagee sales) on real estate.co.nz