The latest data of mortgagee sales released last week by Terralink International showed a significant slow down after what has been almost 30 months of unbroken increases month-on-month.
In June a total of 202 transactions were registered as being made by the mortgagor seeking to recover the loan from the mortgagee who had become delinquent on the repayments. (There is no specific details as to the make up of these 202 transactions, ie. how many were of investment properties / developments as opposed to family homes). This total was down from the 289 reported in June 2009 and 24% down on a seasonally adjusted basis from the prior month. The monthly sales chart is shown below:
This clear sign of decline may however be a brief rest-bite. The tracking of mortgagee listings which are featured on realestate.co.nz have for a considerable period of time been in decline, however the trend over the past 4 months has shown a U-turn with a steady increase in the number of properties coming onto the market being marketed as mortgagee sales. The total had fallen to just 250 in late May and has risen slowly over the past months to now total 321 as at today.
The chart below tracks the inventory of properties being marketed as mortgagee sales for the past 3 years. It specifically highlights the peak of mortgagee property listings in mid 2008 and subsequent decline and then in the exploded view the rise of recent months.