Higher Auckland prices are making servicing a mortgage much harder for Auckland families, Crockers latest research shows.
Through 2012, mortgagee sales have been at record levels, running at a rate of 85 per month – 30 of which are in Auckland.
Mortgagee sales are only 0.5% of all transactions but they are three times as likely to happen in Auckland as anywhere else.
The mortgagee sales aren’t turning into bargains for investors, though.
Crockers research showed that only 5% of investors thought they had picked up a bargain at a mortgagee sale.
A lack of supply seems to be driving up prices – 63% of investors felt demand was the main factor, compared to 23% who thought interest rates were behind the value gains.
Two-thirds of investors were planning to hold on to their rental properties and almost a quarter were planning to increase the size of their portfolios.