Mortgagee property sales are increasing in Otago, with predictions of more to come as homeowners struggle with a shrinking job market and more pressure from banks on those who fail to keep up with payments.
Across the country, mortgagee sales hit a record 201 in March, Terralink International figures show.
In 15 years of collating figures, the previous highest was 191 in December 2008, managing director Mike Donald said last night.
Auckland made up almost half of the mortgagee sales, with 99 in March - up from 10 the previous March.
Otago, which includes Queenstown, had 11 mortgagee sales in March and seven in February.
That compared to 11 for the corresponding two months last year.
In Southland, the picture was rosier, with no mortgagee sales this March or February and only one last year.
Mr Donald said while mortgagee sales in Otago and Southland were still only a tiny proportion of the thousands of properties sold in the regions annually, the figures for Otago showed an upward trend, which he predicted would continue.
Real Estate Institute of New Zealand Otago president Stephen Johnston said last night he was not surprised by the Otago figures.
"Sadly, I think there will be a few more mortgagee sales to come. The feeling I get is that banks are starting to focus on people with non-performing loans more quickly than before."
Both he and Mr Donald said the March figures showed more sales were being forced by banks against homeowners.
That was a change from two or three months ago when most sales were finance companies foreclosing on property investors and developers with multiple properties.
Mr Johnston said economists were picking it would be "at least a couple of years" before the economy improved.
"Some homeowners are being caught by tough trading times and job losses . . . The economy is going to cause some grief for [them]."
The slowdown in property sales was also affecting homeowners who found themselves unable to keep up with their mortgages, he said.
In the past, property owners needing to sell to repay the bank could generally do so quickly, but now banks were forcing mortgagee sales when properties remained on the market.
A luxury Queenstown house featured in the New York Times is one of several Otago properties listed on Realestate.co.nz as mortgagee sales.
The $6.5 million, six-bedroom, three-bathroom house with views of Lake Wakatipu and the Remarkables is for sale by mortgagee tender.
It joins about six houses and managed apartments for mortgagee sale in the resort.
In Dunedin, recent mortgagee sales have included the historic former Bank of New Zealand building on Princes St, and the nearby 1930s former chief post office building.
Other mortgagee sales are taking place in Waverley, Musselburgh, Mornington, Green Island, Waikouaiti, Waitati, and Balclutha.
