From the latest data it looks like the peak of mortgagee listings could be behind us. As at this time there are just under 300 listings on realestate.co.nz (lifestyle and homes for sale) that are being marketed as mortgagee sale.
Peaking in early 2009 at over 400 listings, the trend of decline began in the spring and continued right through to Christmas when there was a clear-out of unsold mortgagee properties which resulted in the stock level falling to less than 200. January and February has seen the number of listings pick up again, however the rise is a seasonal lift rather than an underlying increase.
The chart below shows the number of listings in absolute terms and also as a percentage of all residential listings. To be clear these statistics comprise residential and lifestyle property and exclude sections.
The number of listings as a percentage of all residential listings is key as the past few weeks has seen a significant increase in new property listings coming onto the market – in some extent a flood of new listings. The current level of mortgagee properties is less than half of one percent, that is just one property in every 200.
Matched to this decline in listings is a steady decline in the search enquiry for mortgagee listings. Over the past 6 months the number of search enquiry for the keywords of “mortgagee”, “mortgagee auction” and “mortgagee sale” has steadily declined. At one time over 1 in 10 searches were for these keywords – the past 3 months has seen this drop to just 6% – just over 1 in 18 of all keyword search queries.
The chart below tracks the past 2 years of the number of mortgagee keyword searches as matched to the number of mortgagee properties on the market.