The rise in mortgagee sales is becoming noticeable, with a 35% increase from the previous year.
Despite this, such sales constitute a small fraction of the total market. As of now, TradeMe lists 65 residential properties under mortgagee sales, less than one percent of their total 42,000 listings. Gavin Lloyd, TradeMe’s property sales director told state media that the overall market slowdown and extended selling periods might be contributing to the uptick. Rising living costs and interest rates are pressing homeowners, yet mortgagee sales are often a last resort, indicating that many are attempting to sell proactively before facing lender action.
In Wellington, Bayleys’ Grant Henderson told state media he had seen a significant increase in mortgagee sale appraisals, shifting from three a year to three per month. This rise encompasses a broad range of sellers, from developers to individual homeowners and investors. Henderson said banks consider mortgagee sales a final measure, often after extended periods of financial difficulty and ample warnings. CoreLogic’s chief property economist, Kelvin Davidson, contextualizes the current increase as modest compared to the peak during the 2009 financial crisis, highlighting a contrast with the 24 sales in the first quarter of this year against the 800 monthly sales in 2009.
Image credit: Tierra Mallorca
This is nothing to what’s to come ,the money men are hard at work fleecing everyone. don’t people ever learn this has been happening for years.
Kind of like the banks getting there asset back for free after years of payments…
How could this happen …Again
If the idea is to hold interests rate high to reduce inflation, why have supermarket prices gone through the roof and keep climbing? Why do local council rates go up by 18% and insurance as much as 400%.
Housing instability in both directions is caused by.
1 Regional issues. Wellington’s main employer ballooned state employees, then dismissed them. Making housing increase then crash. If the left and right governments could agree to not do that every other election, that would calm that region.
Regional issues affect Auckland too. Not enough developed land to build on.
Seasonal. Students move to a town to study between February and October then leave.
2. Abrupt immigration.
3. Rapid migration.
4. Printing currency to fill the gap. That fuels inflation.
5. Out of control council overspending leading to over priced services like water and sewer connection to a section only is over $55,000.
7. Regulation. Resource management act. Want to skim off dirt and place it somewhere else so you can build? Make a plan and pay the council several thousands of dollars.
6. Section Price. Most do not know this. To develop land on the edge of a city you must,
a. Buy or own the land.
b. Pay for plans and submit them to council.
c. Wait for years for council to agree.
d. Shape the land.
e. Build in water reservoirs sufficient to last for 100 years and connect them.
f. Build in sewers where the roads are going to be and connect them.
g. Build in water drainage.
h. Build in power cables under the streets.
i. Build in gas mains under the streets.
j. Lay the streets and footpaths.
k. Reserve land for schools, playgrounds, community centres, reserves, bus stops.
l. Agree to plant trees and lawn strips next to the road.
m. Mark out sections.
n. Install retaining walls.
Except for “k” gift all above to the council for free. It is a massive and risky outlay. That is why sections take years and are expensive.
Interest rates are way beyond what the market can cope with. The result is a very unstable and crappy life for citizens.
Stability comes about with gradual and stable growth.
If you want to fix the grocery prices, legislate to force key supermarket locations to be sold to Aldi. That will save 25%. See latest report. We smashed Telecom, now we need to smash Goodman Fielder and Progressive Enterprises.
https://www.choice.com.au/shopping/everyday-shopping/supermarkets/articles/cheapest-groceries-australia
https://en.wikipedia.org/wiki/Woolworths_New_Zealand
I can only imagine the misery of these people, forced out of their homes into a cold and uncertain future. Meanwhile, this latest joke of a government, squander money sucking up to the US and NATO, pass Liebours thoroughly dystopian Digital ID Bill and lastly back taxing on line providers to to prop up the propaganda machine that is the MSM (nice to see one party ACT abstain from this last shameful charade).
They lose their deposit too.