The number of mortgagee sale properties on the market has almost doubled over the last six months.
Interest.co.nz tracks the number of mortgagee properties advertised for sale each week.
In the first week of May this year, 60 properties were advertised for mortgagee sale. So far in the first week of November the number is 119, an increase of 98% on May.
It's easily the most mortgagee sales on the market since interest.co.nz began tracking their numbers in late 2022. (The graph below shows the rising trend since the beginning of this year).
Just over half (54%) of the mortgagee sales currently being advertised are located in Auckland, followed by Waikato on 11%, Canterbury 9% and Wellington 8%. Other regions mostly just have one or two mortgagee sales currently being advertised.
Standalone houses are the most common type of property, accounting for 58% of the currently advertised mortgagee sales, while apartments make up just 10%. Vacant sections, both urban and lifestyle, are the second biggest group of mortgagee sales at 28%.
There can be many reasons that property owners can face financial difficulties that eventuate in a mortgagee sale, but anecdotal evidence suggests a sudden drop in income caused by loss of employment or a business failure are particularly common at the moment.
8 Comments
Green shoots...
And he asked the King for little as payment but to place 1 grain of rice on the first square of a chess board, and to double that on the next square, and to keep doubling until the final square of the board....
Probably Nothing
Averageman,
Mortgagee sales is a result of what has been happening in the past, i.e. higher interest rates leading to tougher business conditions, leading to some business failures and rising unemployment.
"Green shoots" is looking at current conditions like lower interest rates which will lead to better business conditions and more employment in the future.
I agree, the increase in Mortgage sales is going to provide some great buying IF you know what you are doing and buy cheap land in the right place. Hopefully with a cashflow. winter 2026 !!!!!
Absolutely.
But banks have been suppressing the truth with interest only and all sorts of funny games. IRD is chasing revenue...hard. Banks will be able to see lack of payments to IRD as well. Perhaps the are jumping in before the ird arrives.
Summary. Yes rearward looking, but how much have banks had on extend and pretend...?
Buying a pile of specu boxes would be a sign of faith in green shoots. How many are the speculative actually buying?
Banks obviously feel it's a better time to sell now, than in winter.
Liquidators trying to get current account drawdowns back....
I would rather face the dogs of war https://youtu.be/1gbE7MtI_co
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