Property Listing & Mortgage Sale rise

Gerald Mullaney

28 March 2025

Property listing rise to near 40K and mortgage sales rising, could this be profit taking? The view is no, as why would one sell into a falling market? for example Auckland real estate prices adjusted for inflation are down 35% to 40%. The rise in listing may mean the debt holders can no longer afford the huge debt on the property or properties.

The drop in interest rates over the last six month has not eased the situation, its not that interest rates are high or low it a matter that the debt incurred on the property was never affordable in the first instance.

A lot of debt holders took on huge mortgages in some cases over 1.0 million dollars plus, hoping in a lot of cases that, they could hold the property for a short time and make a huge capital gain in a short time with doing very little.

The market down turned from late 2021/22 with the OCR being rased to 5.50% with retail interest rates reaching 7.50% that means on some of these million dollar plus mortgages the interest alone would be 75K or 1,442.00 per week what family could afford that amount wach week?

Therefore the view is the market was full of gamblers and speculators fueled by cheap credit. Throwing the market in a boom that boom is causing the destruction we are seeing in the market place going into 2025.

Therefore the view to all this bad news, most of it not reported. may cause the RSBNZ to stave off a property market crash going into 2025 by once again lowering the OCR to emergency levels to right the titanic property market, save the banks and save the economy.

Be on the look out for a great interest rate going forward from mid 2025 and there also maybe some good property buys for the smart cashed up buyers with great cash flow.

Make this crises your once in a life time opportunity.

Low debt, high equity and solid cash flow is a strategy to consider.