Sharechat Logo

NZ mortgagee sales hold near 2009 highs, may worsen as housing recession endures

Monday 3rd May 2010

Text too small?

New Zealand mortgagee sales held near their 2009 highs and may rise, showing the property market’s sluggish recovery, according to Terralink.

There were 121 registered mortgagee sales in February, down slight from the 124 in the same months of 2009 and a 38% drop from January’s 196 sales.

Terralink managing director Mike Donald said the improvement from January reflects a seasonal drop off that typically reverses in March. Preliminary figures for March indicate numbers will rise again from February.

“The recession is not over in the housing market yet,” he said.

Some property investors have been left servicing mortgages on properties whose value has slipped below the level of debt. With interest rates set to rise and households still feeling poor, the appetite from property remains tepid. Reserve Bank Governor Alan Bollard last week said he will raise interest rates in coming months though the scope of increases may be less severe than in previous tightening cycles. That’s because of a wider gap, or spread between official rates and lending rates.

Real Estate Institute figures last month showed total residential sales edged higher in March from February, though the pace of the recovery is still subdued. Total residential house sales climbed 23% to 6,161 last month from February, though they were down 8% compared to March 2009, according to REINZ figures.

The national average median price rose to $360,500 in March from $350,000 in February.

 

 

 

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO