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Figures from location intelligence firm Terralink International show there were 605 mortgagee sales from April to June 2012, 81 more than recorded for the first three months of the year.
The total number of forced sales in the six months to June 2012 was 1,129, up from 1,007 for the same period in 2011.
Terralink Managing Director Mike Donald says the latest numbers are consistent with the upward trend that began late in 2011.
“For most of 2011 it looked like the era of record high numbers of forced sales was finally on its way out. Unfortunately, since October 2011 we’ve experienced the opposite.
“When you break it down, 605 mortgagee sales in three months is over 50 every week, or more than seven every single day,” Mr Donald says.
Several regions stand out in the figures for their marked increase in forced sales compared to the first quarter of 2012.
Wellington jumped 56%, while Northland and Bay of Plenty recorded increases of 35% in forced sales. Canterbury came fourth with an increase of 30%.
“Forced sales in all of these regions are up not only from the first quarter of 2012, but also up compared to the second quarter of 2011,” says Mr Donald.
By contrast, property owners in Waikato, Otago, West Coast and Southland experienced a moderate reprieve, with the number of forced sales in those regions decreasing slightly. Auckland remained almost unchanged from the last quarter.
The number of property owners with only one property facing mortgagee sales increased slightly from 21% in the first quarter of 2012, to 22% in the second quarter.
“There’s no good news here for so called ‘mum and dad’ property owners. With properties that are likely to be family homes making up almost a quarter of sales, there’s no sign of economic recovery for ordinary New Zealanders,” Mr Donald says.
Corporates owning more than 11 properties experienced the highest increase in groups facing forced sales, jumping from 16% in the first quarter of 2012 to 25% in the second quarter.
The figures also show an increase in the percentage of forced sales involving tier one lenders, up from 48.5% in 2011 to 52.1% in 2012 June year to date.
“Tier one lenders are our major lending institutions, namely the five big banks. We’re seeing more of these institutions force property sales against individuals, families and corporates.
“Economic growth continues to be sluggish at best, and some commentators are even suggesting the economy may have contracted in the second quarter of 2012. As these conditions continue, I think we’ll see the number of mortgagee sales continue to climb,” Mr Donald says.
Terralink derives its data from the registration of actual foreclosures.