There’s no sign of relief for homeowners in the latest Terralink mortgagee-sale figures.
By Susan Edmunds
Terralink International’s latest statistics show there were 2265 mortgagee sales during 2011.
This is 169 fewer than the 2434 recorded in 2010.
But mortgagee sales appeared to be on an upward trend in the second half of last year – November 2011’s 225 mortgagee sales was the highest number in the past five years.
Dropping interest rates this year may have eased the pain somewhat but managing director Mike Donald said the figures showed 2011 was not the year of recovery some had hoped for. “While it’s positive to note a slight overall decrease for the year, what we’re looking for is a sustained downward trend. Right now we’re experiencing the opposite.
“In December 2011 there were 223 mortgagee sales, or more than seven per day. That’s the second highest ever recorded for a December, and just 49 fewer than December 2009 when New Zealand was at the height of recession.”
Mr Donald said it appeared that it was homeowners rather than property investors who were affected. “Looking behind the numbers, we see the proportion of individuals with a single property facing mortgagee sales increased in 2011, up from 19 per cent in 2010 to 22 per cent in 2011. This is equal to the same record high for individuals in 2009. Also, it’s more than likely these sales are for family homes, not rentals or investments.
“More Mum and Dad property owners are losing their homes. It’s hard to claim things are getting better for ordinary Kiwis while this trend continues,” he said.
While some regions experienced a decrease in the number of mortgagee sales, other regions kept rising. Mortgagee sales in Waikato increased 35 per cent during 2011, while Wellington recorded a 34 per cent increase. Other regions to record a significant increase in mortgagee sales during 2011 were Marlborough, Bay of Plenty, Hawkes Bay and the West Coast.
Preliminary figures for January and February 2012 indicated mortgagee sales significantly higher than for the same period last year.
Terralink derives its mortgagee sales data from legal registrations of actual foreclosures.
Source: Landlords.co.nzcomments powered by Disqus