Posts Tagged ‘mortgagee’
Mortgagee sales trending down nationally in third quarter 2012
Filed under: Blog, News, Property Statistics, Terralink Mortgagee Sales Report Responses: 0 Comments
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.
Tags: Bay of Plenty, East Cape, forced sales, lender, Manawatu, mortgagee, Otago, Taranaki, tier two, wellington
Mortgagee property sales show continued pain for heavily indebted owners
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 0 Comments
The latest data of mortgagee sales for May show that there continues to be no let up in the pain being suffered by heavily indebted property owners. Earlier in the year there appeared to be signs of an easing and a sense that the worst may have been over. The May figures have now put pay to that.
Data collected and analysed by Terralink show that in the month of May there were 264 registered mortgagee sales, that is up from 246 in April and up 7% from the figure of 247 in May 2009.
The chart below track the monthly sales since the beginning of 2007 – long before the recession which has so significantly driven the situations which have led to this scale of mortgagee sale.
In the period between January and May of this year a total of 1,029 properties have been sold as mortgagee sales – this is up 6%. However what is more significant is the fact that whilst year-on-year mortgagee sales are up 6% across these first 5 months of 2010 the total sales of all properties across NZ is down 10%. This has resulted in mortgagee sales for 2010 now representing over 4% of all sales. In the month of May just over 5% – or put another way 1 in 20 properties sold were mortgagee sales. The chart below tracks this trend as the proportion of all sales as represented by mortgagee sales since the beginning of 2007.
Another alarming trend as highlighted by Terralink in their analysis of the mortgagee sales in May was a significant change in the type of property owners who are being forced to sell. Their was seen to be an increase in the number of mortgagee sales of properties owned by individuals rather than companies or mulitple owners. It appears that more and more of those individuals are losing their only property – and more than likely it’s their family home. In 2009 when the perception was, that the peak of mortgagee sales was being experienced, it now appears that most of those were properties owned by property investors who had over-extended themselves during the property boom. This year the pain seems to have shifted to ordinary New Zealand families.
In May 2009 just under 50% of mortgagee sales were for properties owned by an individual. In the latest data for May 2010 that number has increased to 62%, and one in five of those forced sales was held by an individual who only owned one property.
For clarification mortgagee sales data is derived from legal registrations of actual mortgagee sales as detailed on the legal certificate of title , these numbers may contain sales for a variety of property and land transactions. These transactions occur when the owner of the property has become in default of the terms of the loan from a bank or other lending institution. In most cases such lenders endeavour to come to an agreement with the owner to arrange suitable payment terms, however if these terms are not met or the owner simply cannot manage to make the necessary level of payment the lender will have no alternative but to instigate a mortgagee sale whereby they take possession of the legal title to the property and sell the property to recover the outstanding amount of the loan. If any surplus from the sale is available after paying agents fees and the lender then that will be paid to the property owner.
Tags: foreclosure, mortgagee
Latest data for April mortgagee sales show no signs of a let up
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 1 Comment
The month of April saw 246 registered mortgagee sales in NZ, this represents an increase of 44 on the March figure and when adjusted for seasonal factors shows a true increase of 25% for the month; clearly signaling that the pressure of repossession by lenders and the subsequent mortgagee sale of properties continues even though the economy is on the road to recovery. These figures are compiled by Terralink International from data from the Land and Information department statistics of registered title transactions where the seller is the financial institution selling on behalf of the owner or mortgagee in default.
The chart above clearly shows that the level of mortgagee sales in 2010 is tracking at an almost identical rate to the levels of 2009. Whilst from an optimistic perspective it could be judged that the rate of increase has ceased, the absolute level continues to remain high, especially when compared to the long term averages pre-recesssion which is perfectly detailed in the chart below which compares the first 4 months (Jan – April) for each of the past 15 years.
Prior to this recession period of 2009 & 2010, the average monthly level of mortgagee sales across the country was 75 as compared to the average over the recent 24 months of 200 a month.
Examining the regional make up of these sales shows in the table below a decline in Auckland with some significant rises in provincial NZ especially in the Manawatu, Waikato, Northland and the Bay of Plenty.
Tags: mortgagee, mortgagee sales
Mortgagee sales begin to ease
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 0 Comments
The latest data of mortgagee sales for the month of February show that the pressure on homeowners struggling under mountains of debt may be easing.
A total of 121 mortgagee sales were registered in the month of February in data released by Terralink International. This total compares to 124 for the same month last year. This is the first time since November 2007 that the year on year change has shown a negative variance. For the past 27 months the picture has looked bleaker every month with some months showing year on year increases of up to 8 times. On a seasonally adjusted basis the month of February showed a 30% decline from January.
As the chart below shows the figures for February are traditionally lower than other months, and it is quite likely that the March sales may well be higher than February has been.
Seen over the course of the past 3 years it is very clear the impact that the economic recession had on distressed homeowners who were forced to accept mortgagee sales as a route to exit the debt burden.
These trends in mortgagee sales naturally track closely the number of listings that come onto the property market as mortgagee sales or mortgagee auctions. Realestate.co.nz provides a detailed tracking of these listings for the past 3 years on a weekly basis. The latest data is that there are currently 291 properties being marketed on the website as mortgagee sales. The chart below track the progressive build of listings over the period of 2008 and then the subsequent decline in number which began around a year ago.
In terms of regional breakdown of the sales of mortgagee properties, the majority of the sales are to be found in the larger regions of Auckland (37%), Waikato (11%), Canterbury and Wellington (7% each). The slightly higher representation of Northland at 9% of all sales in February and Otago (inc Queenstown) at 8% of sales would tend to indicate pressure in holiday homes potentially.
The regional breakdown on February sales is detailed below with the comparative latest 3 month average figures as well as year on year variance.
Tags: foreclosure, mortgagee
Mortgagee sales start new year reflecting continued pressure
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 2 Comments
As 2009 ended, so 2010 began with continued high levels of mortgagee sales across NZ. Whilst the number of mortgagee sales recorded in January at 196 was down from the December figure of 252 it was up 30% over the 1st month of 2009.
As commented by Mike Donald (Managing Director of Terralink) “We do often see a drop in mortgagee sales in January, in fact there were fewer mortgagee sales in January than there were December the month before. This may be because January is generally a quiet business month in New Zealand as many of us are on holiday”
He went on to say “I don’t expect to see mortgagee sales returning to pre-recession numbers at all in 2010. I wouldn’t expect to see a major decline on forced sales until at least the middle of 2011,”
The fact is that pre-recession levels of mortgagee sales as seen through the period up until 2008 would only average around 50 per month, so clearly the current levels are upwards of 4 times that level. The chart below tracks comparative months mortgagee sales over the period of the last 3 years.
Tags: foreclosure, mortgagee, terralink
Mortgagee sales close out 2009 at record levels
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 0 Comments
Total mortgagee sales for 2009 reached a new record level with 3,024 registered sale transactions where the sale was a mortgagee sale. This annual total was more than 3 times the number of sales in 2008 and more than double the highest prior year (2002).
If for ease of assessment these sales were all of properties then they would represent 4.3% of all sales of residential properties sold in the year.
In terms of trends the monthly figures for 2009 show in the chart below a 3 month decline from the peak month of September which attained a level of 343 sales.
The early months of 2010 will be interesting to observe as the level of listings of mortgagee properties as tracked on realestate.co.nz has been falling for the latter quarter of 2009 and whilst picking up in the January again seems to indicate that the peak certainly in terms of new listings may well be behind us.
Tags: mortgagee
Mortgagee sales slip slightly in October
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 0 Comments
Whilst the number of recorded mortgagee sales slipped in October from the high of 343 in September they still remain historically high. A total of 298 sales were recorded in October taking the year to date figure to 2,465 – for the month this represents a 71% increase on the same month last year.
The chart above clearly shows not only the significant levels of sales in each of the months of 2009, but also the fact that this time last year marked the beginning of the steep rise in sales of mortgagee properties. This will provide the opportunity in the coming quarter to assess the year on year comparison more accurately.
The first 10 months of 2009 has seen 2,465 sales – this compares to 964 in the same period of 2008 and just 370 in the first 10 months of 2007 clearly highlighting the significant fall out of the recessionary impact of unemployment and tighter monetary policy and the consequential effect on heavily leveraged investors.
The scale of the rise in mortgagee sales can be best seen in this chart below showing the full history by month since from 2006 when a monthly total of 50 would have seemed high.
The make up of the sales in October comprise a mix of single family homes as multiple property portfolios (more than 5 properties owned by a single entity). The impact of the recession is certainly forecasted by Terralink to continue to see high levels of mortgagee sales into 2010.
Whilst sales levels have continued to rise the number of listings of mortgagee properties on the market has begun to stabilise in the current year with the level of interest as measured by the keyword search of mortgagee showing signs of falling in the last 3 months – these statistics are presented in recent posts on the Unconditional blog on the realestate.co.nz website.
Tags: mortgagee
Mortgagee sales in September grow to set new record high
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 3 Comments
Total mortgagee sales in September as reported by Terralink International surpassed the high of 321 set in July of this year to reach 343 in September. This takes the total of mortgagee sales of property to 2,167 for the 9 months of 2009, compared to a total of 790 for the same period in 2008.
As can be seen from the chart above on a year on year comparison the scale of mortgagee sales surpasses prior years by a significant margin. The sales for September 2009 represented a 130% increase over September 2008 – a time when mortgagee sales were already on the rise.
Total sales for the 9 months of 2009 at 2,167as shown in the graph dwarf the same 9 month period in any of the preceding years.
The key change in the structure of sales is the shift from the sales being predominantly in the major centers to provisional NZ. The chart below shows this with Auckland as a % of sales in September 2009 falling to just over a third of sales as compared to 44% of all sales a year ago.
The key regions which have witnessed the largest increase in sales were Northland going from 3 sales in Sep 2008 to 33 in Sep 2009 and the Hawkes Bay going from 3 sales in Sep 2008 to 24 sales in Sep 2009.
Tags: mortgagee
August mortgagee sales slip back from record highs
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 1 Comment
A total of 241 mortgagee sales were recorded in the month of August as reported by Terralink – down from the peak of 321 reported in July. This takes the year-to-date figure to 1,824.
When compared to this time last year the m
onthly total shows an increase of 141% whilst the year-to-date shows a 285% – the year-to-date figure of Jan to August in 2008 was just 641 sales.
The decline from the peak was in someways expected as the lead indicator of mortgagee listings as tracked on realestate.co.nz had been witnessing a stabilising in the stock level of mortgagee listings by real estate agents for a number of months. The number of listings of mortgagee residential properties peaked at just over 400 in the first few months of this year and currently stands at somewhere over 300. It should be noted that the mortgagee sales reported by Terralink do include non-residential sales and this accounts for the overlap of sales to listings as shown in the chart below.
The mortgagee property sales not only show large actual numbers but also have risen to levels over the past 18 months that represent a small but significant component of all residential sales. The chart below track the past 14 years and shows the actual sales in each year for the first 8 months of each year represented as the proportion of all residential sales in those periods.
Tags: mortgagee
July mortgagee sales exceed 300 for the first time
Filed under: Blog, Terralink Mortgagee Sales Report Responses: 0 Comments
Total mortgagee sales for the month of July amounted to a staggering 194% increase over the same month last year. A total of 321 registered mortgagee sales were reported by Terralink in a report issued today for the month of July 2009.
That total for the month takes the year to date figure for 2009 to 1,583. That figure exceeds the total year in the preceding highest year – that being 2001 when in 12 months a total of 1,539 sales were registered.
Each month this year the total has outstripped the prior year by more than 100% and completely dwarfs the 2007 year figures.
Within the total of 321 sales there are a diversity of properties encompassing property development units as well as private residential and investment residential. The traditional view of mortgagee properties being single family homes where the property is family owned and represents the only owned property only represents around 20% of all the sales of mortgagee properties over recent months, although the rate of sale of these properties have equally been rising over recent months.
In terms of regional variation the majority of sales still are represented in the Auckland region. In July 144 of the 321 sales were in Auckland, 26 in Wellington and just 24 sales were reported in Canterbury. The Canterbury region has seen a decline over recent months with the biggest fall in the Christchurch city area where sales have dropped by half since a the June figures. The map below details the sales by region comparing the totals as against July 2008.
Tags: mortgagee
-
Subscribe to zoodle