Daily Archives: June 28, 2009

NZ Mortgagee Sales Skyrocket?

Well according to an article in todays Sunday Times, that is what is happening.

According to data provided by Terralink …….

The numbers have been consistently higher than the previous year, reflecting the increasing pressure homeowners are under as the recession bites.

Terralinks‘ MD, Mike Donald, chips in ……

“mortgagee sales were hitting ordinary homeowners, and 36% of forced sales were driven by the major banks. He expects mortgagee numbers to keep increasing, especially as unemployment rises.”

and follows this up with………

“There’s no slowing down 251 is a pretty strong increase and when you look at the curve from December it’s still accelerating upwards. There is no sign of it abating.”

So should panic set in?

Lets pump it up a level….   According to realestate.co.nz……….

The keyword “mortgagee” was the number one search term by visitors to the site, which has more than 110,000 listings.

And then Treasury recently stated…

Treasury has forecast that house prices will fall 12% by March next year, identifying rising unemployment as a pressure factor.

So, with a sense or urgency I thought although I hadn’t heard of any such activity locally lately, I had better double check for sure.

After searching the whole Nelson / Tasman region (756 listings on realestate.co.nz) I came up with the above answer.

And then I thought there are some private sellers who use TradeMe, so I had better check that out to be sure too. Surprise, surprise.

So to the “Mortgage Sales reach 1-in-25” headline on Page 3 of todays Sunday Star Times, all I can say is………….!

BUT I thought it was worth bringing to interested parties attention, especially like the half dozen emails I got this week (all from overseas potential buyers I might add) that asked about the region and its sustainability.

In fact 3 commented, “considering the tough climate in NZ, and the current downturn in home prices……what price could I….”   Well, what could I report to them on this……..unfortunately for them probably what they didn’t want to hear…………and that was, just the truth about the current local Nelson/Tasman market. See above.

So finally just to set the record straight, its not 1-in-25 here in our region BUT its 0-in-756!

But with a background like this, and this, and not forgetting this,  you really can’t be surprised now, can you?