Record high for mortgagee sales despite recovery

Record high for mortgagee sales despite recession recovery

27 September 2009
MEDIA RELEASE

Despite claims earlier this week that the worst of New Zealand’s recession is over, the latest mortgagee sales data, released today by Terralink International, has reached an all time high.

In July, there were 321 mortgagee sales, 10 times greater than the pre-recession monthly total for July 2007, at 33. Mortgagee sales now account for five percent of all property sales, up from just 0.003 percent in July ‘07.

It is the first time, since records began 15 years ago, that sales have exceeded 300 for a single month.

Terralink Managing Director, Mike Donald, says this is a clear indication that the economic downturn is still having a big impact on property owners. The total mortgagee sales to date for this year, at 1,809, have already overtaken the 1,304 sales for the entire year in 2008.

“Whilst recent reports show the New Zealand economy is in recovery, the rising number of mortgagee sales show individual New Zealanders are still being hit by the effects of the recession. Months of financial stress and the affects of job losses unfortunately mean some people cannot meet their mortgage payments and one in 20 of all property sales are now mortgagee sales.

“These latest figures show that even though export volumes and much of industry is on the up, many New Zealanders will still be feeling the recession for some time yet.”

Regional Breakdown
July 08/July 09

Auckland/53/144
Bay of Plenty /9/17
Canterbury/9/24
Hawkes Bay /4/10
Manawatu/5/19
Northland/2/19
Otago/3/17
Southland/1/4
Taranaki/0/6
Waikato/14/25
Wellington /3/26
Other regions/6/10

TOTAL/109/321

Terralink derives its mortgagee sales data from legal registrations of actual mortgagee sales. Terralink Mortgagee sales reports are available at the end of each month and can be downloaded at www.zoodle.co.nz

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

ENDS

© Scoop Media