Sydney : Defaults hit mortgages in city’s west

Written by admin on May 31, 2008 – 7:36 am

MORE and more western Sydney families are falling behind on their mortgages each week.

While most borrowers across the city are meeting increasing repayments and not falling into a serious financial scrape, new figures show the number of borrowers in the west falling behind on their mortgage bills has jumped dramatically – particularly in the past six months.

» Defaults hit mortgages in city’s west – The Sydney Morning Herald, 30th May 2008.

MELBOURNE’S outer suburbs are showing the bruises of higher interest rates. Up to 4% of indebted households in some Melbourne suburbs are now behind in their mortgage payments, a new survey reports, and their numbers are rising rapidly.

» Home buyers fall behind on payments – The Age, 30th May 2008.


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UK: House prices post record fall

Written by admin on May 30, 2008 – 7:36 am

LONDON (Reuters) – House prices fell a record 2.5 percent in May, the Nationwide Building Society says, raising fears the property market downturn could soon turn into a crash that hits the whole economy.

The monthly decline, the largest since the lender started compiling records in 1991, wiped 5,000 pounds off the value of the average home and took prices 4.4 percent lower than a year ago — the sharpest rate since the 1992 economic slump.

“The sheer size of the drop in house prices, without the economy having yet slowed significantly, suggests that this housing market correction will be deep and prolonged,” said Seema Shah of Capital Economics.

» House prices post record fall – Reuters, 29th May 2008.


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US: Home prices plunge 14.1% in first quarter

Written by admin on May 28, 2008 – 7:40 am

NEW YORK (AP) — U.S. home prices dropped at the sharpest rate in two decades during the first quarter, a closely watched index showed Tuesday. It’s a somber indication that the housing slump continues to deepen.

Standard & Poor’s/Case-Shiller said its national home price index fell 14.1% in the first quarter compared with a year earlier, to its lowest level since its inception in 1988. The quarterly index covers all nine U.S. Census divisions.

» Home prices plunge 14.1% in first quarter – CNN Money, 27th May 2008.


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Sydney properties halve in price

Written by admin on May 12, 2008 – 8:47 pm

HOUSE prices in some parts of Sydney have almost halved as battling borrowers struggle to keep up with increasing interest rates.

The falls – in Sydney’s west, the Hills district, and Sutherland Shire – are far steeper than previously thought, and show the devastating effects of the RBA’s rate-hiking spree.

In the past six months, 30 homes across Sydney have been sold for at least $100,000 less than was paid at the height of the property boom, many as a result of distressed mortgagee sales.

» Sydney properties halve in price – news.com.au, 12th May 2008.


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Call for incentives as auctions collapse

Written by admin on May 12, 2008 – 8:43 pm

Now that the Bubble has popped, the Head of Real Estate Institute of Victoria is calling for incentives to help make the bubble even bigger.



PROPERTY markets around Australia continued to struggle over the weekend, with auction clearance rates now below 50 per cent in the key markets of Sydney and Brisbane.

Head of the Real Estate Institute of Victoria Enzo Raimondo said with 1200 people arriving in Melbourne every week, the market was population driven. “Melbourne offers a good lifestyle and cheaper housing,” he said. “Melbourne is offering good value for money and people are being drawn by that.”

He said the federal budget needed to have incentives for housing affordability right around the country and not just for first home buyers. “A lot of focus is given to first home buyers, but they make up less than 20 per cent of the market,” he said. “Much of the rest of the market needs assistance as well. The budget has to address affordability across the board.”



» Call for incentives as auctions collapse – The Australian, 12th May 2008.


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House bubble bursts, but whose fault is it?

Written by admin on May 12, 2008 – 8:23 pm

HOUSE prices in some parts of Sydney have almost halved as battling borrowers struggle to keep up with increasing interest rates.

“It is clear that some people just paid the wrong price for a property and that happens a lot,” Mr Edwards said.

“In every suburb in Sydney, there will be some properties that will have lost value because in every place in Australia there will some foolish person who paid too much for a property.”

» House bubble bursts, but whose fault is it? – news.com.au, 12th May 2008.


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Economic slide puts jobs at risk

Written by admin on May 10, 2008 – 11:36 am

THE economy is headed for a dramatic slowdown that will drive up the unemployment rate as high interest rates sap consumer confidence.

Yesterday’s stark warning from the Reserve Bank appears to be backed by Treasury, with Wayne Swan confirming that Tuesday’s budget would forecast a lift in the unemployment rate.

» Economic slide puts jobs at risk – The Australian, 10th May 2008.


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Homes out of reach after 12.5% rent spike

Written by admin on May 10, 2008 – 11:34 am

RAPID rent rises across Melbourne have renewed fears about housing affordability.

Office of Housing figures show the metropolitan rental index shot up by 12.5% in 2007.

» Homes out of reach after 12.5% rent spike – The Age, 10th May 2008


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House prices under pressure

Written by admin on May 9, 2008 – 8:39 pm

AUSTRALIAN house prices look vulnerable over the next year as rising interest rates and record levels of mortgage stress take their toll, The Australian reported today.

House prices in the US are off by 15 per cent from their highs, while Britain, Europe and New Zealand are also experiencing price falls, giving reason for concern in Australia.

» House prices under pressure – news.com, 9th May 2008


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Reserve Bank keeps finger on rates trigger; Inflation out of control

Written by admin on May 9, 2008 – 7:46 pm

THE Reserve Bank has warned it will raise interest rates again if the economy does not slow as it expects, but has tipped unemployment will rise.

» RBA warns of rise in unemployment – The Australian, 9th May 2008.
» Reserve Bank keeps finger on rates trigger – ABC News, 9th May 2008.
» RBA lifts inflation forecasts – News.com.au, 9th May 2008.


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Families spending half of income on debt

Written by admin on May 8, 2008 – 8:44 pm

MANY families are spending more than half their gross household income on paying debts, credit gatherer Veda Advantage says.

It found 1.3 million of us spent more than half of the gross household income on paying debts, while 1.8 million spent more than 40 per cent on debt repayments.

» Families spending half of income on debt – news.com, 8th May 2008.


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Stressed homeowners raiding super

Written by admin on May 8, 2008 – 8:39 pm

HOMEOWNERS making a final desperate grab to save their homes from repossession are raiding their superannuation at an alarming rate, new figures show.

More than $175 million was released from super funds last year to help homeowners pay their mortgages.

» Stressed homeowners raiding super – news.com, 8th May 2008


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US inflation too high: Fed official

Written by admin on May 8, 2008 – 7:46 pm

A VETERAN US central bank official aid today he¿s worried about a deteriorating inflationary environment, and suggested that when the Federal Reserve begins to raise rates, it could do so swiftly.

Federal Reserve Bank of Kansas City president Thomas Hoenig said rising inflationary pressures are “troublesome” and a “serious” matter, and now stand at “unacceptably high levels.”

» US inflation too high: Fed official – The Australian, 7th May 2008.


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Inflation rises at record pace

Written by admin on May 5, 2008 – 8:51 pm

INFLATION is rising at its fastest rate on record as petrol prices reach fresh heights, a leading private sector indicator shows. Economists say an interest rate cut by Christmas is now looking less likely, as price pressures persist.

» Inflation rises at record pace – news.com, 5th May 2008


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