Property

Investors not out of the woods yet

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

Monday, May 03rd 2010

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.

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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