- As homeowners in Australia face increasing pressure from rising interest rates and living costs, major property markets are witnessing a surge in forced home sales. According to a report by The Australian, distressed sales data from SQM Research shows a year-on-year increase in emergency property sales in New South Wales and Victoria. In June, forced sales in New South Wales skyrocketed by 11.1%, reaching 1,118 properties, while Victoria saw a 19.7% increase, totalling 846 properties.
However, the most concerning situation is in Tasmania, where the number of forced property sales surged by over 54% last year, with 88 properties affected. SQM Managing Director Louis Christopher told The Australian, “Compared to pre-pandemic levels, all other states are still below our levels.” “That’s why we haven’t been overly concerned about these numbers. But in Tasmania, it’s not the case, they’re definitely on the rise. We know that mortgage stress levels have indeed reached very high levels in Tasmania, housing affordability reached record lows during the last boom, and house prices have actually been rising since 2015. I think these factors may have the greatest impact on the state for local residents.”
Despite the Reserve Bank’s decision to pause cash rates at 4.1% this month to allow previous rate hikes to take effect, homeowners with a $600,000 mortgage have seen their repayments increase by more than $15,000 per year since May 2022.For homeowners seeking assistance in navigating these challenging times, North Sydney Mortgage Broker Speed Lending offers expert guidance and support. Visit their landing page at Buying Home or Click here to calculate your borrowing capacity by yourself.