Mortgagee sales are showing a significant downward trend for the first time since the global financial crisis began in 2007.
Figures from location intelligence company Terralink International show there were 516 mortgagee sales from July to September 2012, 15% less than recorded for the previous quarter (April to June 2012).
The total number of forced sales in the nine months to September 2012 was 1,645, with a clear and continued downward trend from May 2012.
Terralink International Managing Director Mike Donald says the latest figures are welcome news and finally show a trend back toward pre 2007 levels.
The number of mortgagee sales still remains stubbornly high in comparison with pre-recession figures. However, we are seeing an easing of volumes nationally with only a handful of regions experiencing any significant increases in the third quarter of 2012.
Manawatu and East Cape stand out as the regions with the largest increases in mortgagee sales when comparing third quarter figures with the previous quarter. Mortgagee sales in the Manawatu increased by 28% and the East Cape region jumped by 137%.
By contrast Taranaki (-38%), Wellington (-25%), Otago (-28%) and the Bay of Plenty (-55%) all experienced marked drops quarter on quarter.
The proportion of “Mum and Dad” property owners (described as individual property owners with only one property) facing mortgagee sales has also dropped slightly from 22% in the second quarter of 2012 to 20% in the third quarter.
The figures also show a continued decrease in the number of sales forced by smaller ‘tier two’ lenders such as finance companies.
At the start of the financial crisis it was this category of lenders forcing a greater percentage of mortgagee sales, but this trend has reversed sharply as we head through the recession and into recovery,” says Mr Donald.
However, for the majority of New Zealand property owners, the latest mortgagee sales data suggests that pressure is finally easing, which is welcome news as we go into the holiday season.
Terralink derives its data from the registration of actual foreclosures.