Mortgagee sales still coming through

Photo / Janna Dixon

The number of properties going to mortgagee sale appears to have flattened out - but commentators say banks may still be dripfeeding listings on to the market.

Realestate.co.nz tracks mortgagee sales featured on its site. It says this week 311 were listed, compared with 307 at the same time last year.

However, chief executive Alastair Helm said the rise in listings towards the end of last year was significant.

"The peak in November at 385 coincided with a time at which there were comments in the media of banks starting to release mortgagee properties on to the market."

There had been a sense that market activity levels at the time could handle more mortgagee sales without destabilising prices, he said.

Overall, the number of listings had been steadily declining from the initial peak in late 2008. Mortgagee listings would continue in the range of 200 to 250 a week for much of this year, Helm said.

Mortgagee properties tended not to stay on the market for long.