National are asleep at the wheel
Mortgagee sales reach 1-in-25 level
GROWING NUMBERS of Kiwi homeowners are facing the prospect of handing over the house keys, with mortgagee sales now accounting for one in 25 property transactions.
Figures released today by property information company Terralink show mortgagee sales hit 251 in April the highest monthly total in 15 years. In April last year there were just 90 forced sales. That means mortgagee sales accounted for just over 4% of the 6210 houses that sold in April. A year ago mortgagee sales represented just 2% of the total. This is the fifth month Terralink has released data on forced sales in New Zealand. The numbers have been consistently higher than the previous year, reflecting the increasing pressure homeowners are under as the recession bites. And there is no real sign of hope in the immediate future. Terralink managing director Mike Donald said mortgagee sales were hitting ordinary homeowners, and 36% of forced sales were driven by the major banks. He expects mortgagee numbers to keep increasing, especially as unemployment rises. "There's no slowing down 251 is a pretty strong increase and when you look at the curve from December it's still accelerating upwards. There is no sign of it abating." Treasury has forecast that house prices will fall 12% by March next year, identifying rising unemployment as a pressure factor. Latest data from Statistics New Zealand show unemployment has reached 5% and is widely predicted to reach 160,000 by the end of the year.
Seeing as NZers have all signed up to guaranteeing the banks in the wake of the greedy American corporate meltdown, those who are now being thrown out of their homes by those very same banks must be swallowing a bitter pill as they get tossed onto the streets while Mr Bank chummies it up. Where is the ‘understanding’ that Gleeful John promised would come from his banking mates? In fact where is King John? Last week King John was desperately defending National’s incompetent handling of the employment situation that is seeing 1000+ NZers joining the dole each week (and which is only going to get worse and worse) by telling Monday’s press conference that he didn’t think the GDP rating due out on Friday would be –1 and that it would be much better. Roll around Friday and the GDP was –1, where was King John to explain the discrepancy between his Monday prediction and Friday’s reality? King John was no where to be seen.
What I’m sick to death of hearing from pundits is this “NZERS WON’T BLAME THE GOVERNMENT FOR THE GLOBAL ECONOMIC RECESSION BLAH BLAH BLAH” – dumb pundit, yes NZers won’t blame National or ACT for the global recession you morons but what the NZ public WILL BLAME NATIONAL AND ACT FOR is their response, or in this case, lack of a response to the global recession. The only plan the Government has is to ‘cut back Government spending’ and that’s a euphemism for privatization. ACT, the tail that owns the dog, is planning a mass privatization agenda using the Super City as the blueprint, as the ever brilliant Gordon Campbell points out…
Rodney Hide’s agenda for local government involves – as Scoop reported six months ago – the importation of an American model that has resulted in drastic cutbacks in the public services provided by local government, and the privatization of some current services as a result. Colorado and California are two fairly chilling examples of what Hide has in mind. This agenda is outlined in a Cabinet paper whose contents are being wheeled into place in New Zealand under the cover of sweet-sounding terms like ‘greater transparency’ and ‘more accountability’.
…the reality is that the recession will turn into a depression as the effects of mass unemployment start to take effect. Exploitation of these huge unemployment numbers will occur under the right to sack environment ACT and National have created and the mass privatization of public services desperately needed by those inching closer to the breadline will galvanize a lot of fury towards the Government. The Maori party continues to look limp and the camouflage wrapping to make ACT and National look moderate starts to become more and more apparent as ACT and National’s mass immigration ‘solution’ is quietly rolled out with zero public consultation.
King John is still in denial about how bad the situation is, and is still not being upfront with the privatization agenda being worked on in the back rooms.
I wonder if this now is that change NZer’s were looking for? National are looking more and more like a one term wonder.