Recommended NZ | Guide to Money | Gimme: Competitions - Giveaways

Mortgagee Sales Down But Too Soon To Celebrate

Contributor:
Fuseworks Media
Fuseworks Media
Mortgagee Sales Down But Too Soon To Celebrate

Mortgagee sales decreased in August, but Terralink international warns it's too early to declare it's a sign that things are looking up.

The data released today, showed 241 registered mortgagee sales, compared to a record 321 in July. In August 2008 there were 100 mortgagee sales.

Terralink Managing Director Mike Donald said it was the first time there had been a considerable decrease in mortgagee sales since February this year, but when compared to 12 months ago, the number of mortgagee sales occurring remained significant.

"The increase in mortgagee sales in 2009 has been phenonmenal, at one stage, one in five house sales was a mortgagee sale. Property investors have been hit particularly hard. While there's been a 25% decrease compared to the month before, it's a little too early to declare it a trend.

"If you compare these figures to those from a year ago, they have inceased by 141%. I don't see the decrease this month as a sign of recovery. At most, it's an easing of stress.

"I think it will be early next year before we'll be able to gauge if mortgagee sales really are decreasing."

Mr Donald said there were pockets of New Zealand where mortgagee sales continued to climb.

In Christchurch city there were 19 mortgagee sales in August, up from 13 in July, while all the other main centres expereinced a decrease. In the regions, the West Coast, Northland, Hawke's Bay and Canterbury were the only areas that recorded an increase in mortgagee sales.

"Auckland still has the highest number of mortgagee sales at 102 but that's down from 144 in July. Otago which had also been one of the hardest hit areas expereinced a decrease in August. Hawke's Bay had the biggest increase, up 50% from the month before," Mr Donald said.

Terralink derives its mortgagee sales data from legal registrations of actual mortgagee sales.

Mr Donald said Terralink Mortgagee Sales Reports are available at the end of each month and can be downloaded on www.zoodle.co.nz.

Terralink is New Zealand's leading property and land information provider.

All articles and comments on Voxy.co.nz have been submitted by our community of users. Please notify us if you believe an item on this site breaches our community guidelines.