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Despite reports pointing to economic recovery, latest figures show mortgagee sales are at a record high and expected to remain that way for most of the year.
Terralink International's data released on Sunday showed there were 287 registered mortgagee sales during November, almost double the previous November's figure of 148, and well up on the 39 in November 2007.
Terralink managing director Mike Donald said while there was a 4% drop in mortgagee sales compared to October 2009, the change was too small to indicate a general trend.
"We'll probably see a dip in mortgagee sales in December too, because December is a slow month for house sales overall."
Auckland, Otago, Nelson and Northland all experienced an increase in mortgagee sales in November, while figures for the rest of New Zealand either decreased or stayed the same as the month before.
Donald said the type of homeowners forced to sell changed during the year.
During the first part of 2009, property investors and developers who owned multiple properties accounted for the majority of the rising number of mortgagee sales.
However, as the year wore on and the recession deepened, owners of family homes started losing their properties.
"Once we have December's data we'll be able to track the full 12 months and have a complete picture of the effect the economic downturn has had on mortgagee sales."
Donald said he didn't expect to see the number of mortgagee sales decrease significantly this year.
"By the time a mortgagee sale is necessary a person has probably experienced a long period of financial woe.
"Forced sales don't usually happen overnight. Therefore, we may still see high numbers of mortgagee sales for the remainder of 2010, despite reports that the economy is now in recovery."
Mortgagee sales accounted for almost 5% of total property sales in November.
