The number of people putting their homes on the market because they can’t afford their mortgage repayments is actually falling, despite cost pressures from rising interest rates and inflation, the latest data reveals.
The surprise figures, contained in a Domain report that charted the numbers of distressed listings in each capital city from January 2021 to June 2023, show widespread declines, although some suburbs are still hurting.
In Sydney, only 3.6 per cent of listings were a result of financial pressures in June 2023, compared to the December 2022 high of 5.2 per cent.
In Melbourne it was 1.7 per cent as against 2.3 per cent six months ago, in Brisbane 4.6 per cent, down from 7.1 per cent, and in Canberra, down to 1.1 per cent from 1.7 per cent.
In Hobart, the figure was 0.9 per cent, down from its high of 1.2 per cent in April 2023, and in Darwin, 5.4 per cent, down from 7.3 per cent in March 2023.
Adelaide’s distressed listings increased slightly between May to June – from 1.1 per cent to 1.2 per cent – but the figure is still down from its peak level of distressed listings (1.3 per cent) late last year.
Within those distressed property sales, however, Queensland is doing it the toughest – largely because of all the Sydneysiders and Melburnians who flooded to the state during and post-COVID to buy holiday homes and investments.
Slugged by 13 months of interest-rate rises, and with rents still not high enough to compensate, many are now trying to offload their houses and apartments before they lose any more money.
New Domain data has found that eight of the 10 regions in the country with the most distressed listings are in Queensland, mostly around Brisbane’s south-east and east, and on the Gold Coast.
Only two regions in other states made it into that dismal top 10: Barkly in the Northern Territory, with its main town, Tennant Creek, at number one, and Fairfield in Sydney’s west in ninth place.
In Barkly, the Domain report found, 15.6 per cent of listings in June 2023 were by distressed sellers – people who want to sell properties urgently usually because of financial pressures. That’s a figure 2.4 per cent up on the past year.
Most of those were likely to be investors, said Jo-Anne Pulsford of Nutrien Harcourts Alice Springs, who sells in Tennant Creek, because a huge chunk of the homes in Tennant Creek had owners who leased properties to Territory government employees, like police officers, corrections officials and health and education workers.
The next seven places on the table are all in Queensland, with Brisbane’s Sunnybank leading the way with distressed listings at 13 per cent, although that figure was at the same level last year.
During the pandemic, many owners of properties closer to the city, such as in Camp Hill and Norman Park, also sold to buyers from Sydney and Melbourne and then moved to more expensive homes on the bayside for lifestyle and to work from home.
Other hard-hit areas include Mudgeeraba-Tallebudgera on the Gold Coast, where 11.9 per cent of listings are distressed, the Gold Coast Hinterland, where the proportion of distressed listings has risen 5 per cent over the year to 11.7 per cent, and Southport, at 11.6 per cent.
In Sydney’s Fairfield, 10.8 per cent of listings are classed as distressed. Most of those affected were owner-occupiers and first-home buyers who were often on low wages, said Bassam Hendy of McGrath Estate Agents Liverpool.
The place most affected in Western Australia is West Pilbara with 10.1 per cent distressed listings. In Victoria, it’s Casey South with 4.6 per cent, in South Australia it’s Charles Sturt at 3.2 per cent, in Tasmania it’s Brighton at 2.8 per cent and, in the ACT, Belconnen at 2.3 per cent.
Source - domian.com.au
by Maddy Sheekey in Latest News
Archived Posts
- October 2024 (2)
- September 2024 (1)
- August 2024 (1)
- July 2024 (1)
- June 2024 (2)
- March 2024 (1)
- February 2024 (2)
- November 2023 (1)
- September 2023 (2)
- August 2023 (3)
- July 2023 (4)
- June 2023 (4)
- May 2023 (5)
- March 2023 (2)
- January 2023 (3)
- December 2022 (2)
- November 2022 (7)
- October 2022 (7)
- September 2022 (7)
- August 2022 (9)
- July 2022 (13)
- June 2022 (8)
- May 2022 (9)
- April 2022 (3)
- March 2022 (3)
- February 2022 (1)
- January 2022 (2)
- December 2021 (5)
- November 2021 (6)
- October 2021 (6)
- September 2021 (6)
- August 2021 (5)
- July 2021 (5)
- June 2021 (8)
- May 2021 (4)
- April 2021 (5)
- March 2021 (2)
- February 2021 (4)
- January 2021 (6)
- October 2020 (6)
- September 2020 (6)
- August 2020 (10)
- July 2020 (4)
- June 2020 (4)
- May 2020 (2)
- April 2020 (5)
- March 2020 (4)
- February 2020 (7)
- January 2020 (3)
- December 2019 (2)
- November 2019 (2)
- October 2019 (8)
- September 2019 (6)
- August 2019 (3)
- July 2019 (6)
- June 2019 (4)
- May 2019 (8)
- April 2019 (8)
- March 2019 (7)
- February 2019 (3)
- January 2019 (2)
- December 2018 (2)
- November 2018 (1)
- June 2018 (2)
- May 2018 (4)
- April 2018 (2)
- March 2018 (4)
- October 2017 (1)
- September 2017 (1)
- July 2017 (1)
- May 2017 (1)
- March 2017 (1)
- February 2017 (1)
- December 2016 (1)
- November 2016 (1)
- October 2016 (1)
- September 2016 (1)
- August 2016 (1)
- July 2016 (1)
- June 2016 (1)
- May 2016 (1)
- February 2016 (2)
- January 2016 (1)
- November 2015 (2)
- October 2015 (2)
- September 2015 (2)
- August 2015 (1)
- July 2015 (2)
- May 2015 (1)
- April 2015 (2)
- March 2015 (7)
- February 2015 (7)
- January 2015 (1)
- December 2014 (1)
- November 2014 (2)
- October 2014 (2)
- September 2014 (2)
- August 2014 (3)
- July 2014 (6)
- June 2014 (4)
- February 2014 (4)
- October 2013 (1)
- September 2013 (1)
- August 2013 (1)
- June 2013 (2)
- May 2013 (1)
- October 2012 (1)
- April 2012 (1)
- March 2012 (2)
- December 2011 (2)
- November 2011 (4)
- October 2011 (5)
- September 2011 (4)
- August 2011 (3)
- July 2011 (2)
- May 2011 (1)