Mortgagee levels not as bad as reported: Helm

Terralink data released last week showed that in the first half of this year, there were 1129 mortgagee sales, up from 1007 for the same period last year.

Terralink managing director Mike Donald told media he expected the number to continue to rise and could reach or surpass 2009 levels.

But Helm said that was inaccurate and the number of active listings had fallen substantially since the peak of the financial crisis.

“There is no doubt as was reinforced by Helen O’Sullivan CEO of the Real Estate Institute, that part of the reason for sales remaining active whilst listings are falling is a function of the more active property market which is allowing banks to more confidently offload liability assets in the form of mortgagee properties. However I think the Terralink data and commentary should be examined more closely.”