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Summarised by Centrist
The number of mortgagee sales in New Zealand has almost doubled since May, reflecting the growing strain on borrowers from high interest rates and falling household incomes.
Interest.co.nz’s Greg Ninness reports that 119 properties were advertised for mortgagee sale in the first week of November, up 98 percent from 60 in early May, the highest level since tracking began in 2022.
More than half of the listings (54 percent) are in Auckland, followed by Waikato (11 percent), Canterbury (9 percent), and Wellington (8 percent). Standalone houses make up the majority of mortgagee sales at 58 percent, while apartments account for only 10 percent. Vacant sections, both urban and lifestyle, represent 28 percent of the total.
Ninness notes that financial distress leading to forced sales can stem from a range of causes, but sudden income loss through redundancy or business failure appears to be the most common trigger. The rise suggests that, while inflation has eased, households remain under severe cash-flow pressure after two years of high mortgage costs.
The upward trend marks a sharp contrast with the pandemic period, when record-low interest rates and government support held mortgagee sales near zero. Today, the combination of tighter lending, high living costs, and soft property values is pushing more owners to the brink, turning what was once a rare occurrence into a growing fixture of the housing market.
