And so it begins ...

More Kiwis to lose homes

Real estate experts have warned of increased mortgagee sales this year as the housing market cools and interest rates rise.

New figures released yesterday showed the housing slowdown continuing this year.

While prices were holding, the rate of house price rises had slowed in most regions, including Canterbury, Quotable Value (QV) figures showed.

QV Christchurch spokesman Richard Kolff said economic factors were working against the housing market.

"Sustained pressures such as high fuel and food prices and the Reserve Bank holding up the official cash rate are resulting in a slowdown," he said.

Kolff said property owners with low incomes or big mortgages could be struggling as they faced higher interest payments after fixed-term mortgage rates expired.

"Already this month we have seen some properties go to mortgagee sale and this is likely to become more prevalent as the year progresses," Kolff said.

Christchurch real estate agents believed the housing market this year would be flat, but were split on whether the slowdown would lead to a rise in mortgagee sales.

The number of mortgagee sales listed on the Trade Me Property website had risen from 12 in 2006, to 29 in December 2007 and 39 at present.

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Further evidence the housing market was slowing came yesterday with the real estate industry announcing more houses than ever on the market.

An industry website, featuring 90% of all real estate listings, said there were almost 57,000 residential properties on the site.

"At this time last year, there were 42,500 residential properties for sale, so we're looking at an increase of 35% of homes for sale -- a huge increase," realestate. co.nz chief executive Alistair Helm said.