Forced home sales continue as downturn bites

Photo / Herald on Sunday

Forced home sales climbed in July, compared with June, but were down on the same month last year.

Figures from property and land information provider Terralink International show there were 217 mortgagee sales in July, compared with 202 in June. Managing director Mike Donald said while the number of forced sales was down 32 per cent on July last year when there were 321, they had a long way to fall before returning to pre-recession levels.

"There's still a lot of stress among homeowners. In July 2008, before the effects of the economic downturn were yet to be felt, there were 109 mortgagee sales. The year before in July 2007, there were only 33.

"We may not see the number of mortgagee sales return to pre-recession rates for some time yet," Donald said.

In July 2010 the number of mortgagee sales in Canterbury rose 60 per cent to 24 from 15 the month before. The majority of those were in Christchurch city.

But Donald said it was too early to predict how the earthquake in Christchurch would impact the housing market and mortgagee sales.

Southland, Taranaki and Hawkes Bay also all experienced an increase in forced sales in July.

- NZPA