The state`s default on loans hit a two-year high. (photo of property website Realestate)
The state`s default on home loans hit a two-year high and could get worse, according to real estate website Realestate.
Melbourne`s slumping house prices are adding to the pressure on already financially strapped families, who need to sell their homes at a disadvantage, it is reported.
According to (Australian Mortgage Delinquency Map), a map of Australian mortgage defaults by Moody`s Investment Services firm (Moody`s Investor Services), the worst postal zone in the state is Malgrave (Mulgrave),. About three out of every 100 homeowners are in arrears for at least a month, or 3.5 percent, ranking 15th in Australia.
Median home prices in the city have fallen A $50, 000 in the past year to A $ eight hundred and fifty thousand, or 5.6 percent, according to the latest data from research firm CoreLogic.
Despite the rise in loan defaults in Victoria, where 1.39 percent of homeowners default at least a month, the ratio is still lower than the national average of 1.58 percent.
Alena (Alena Chen), an analyst at Moody`s, said the weak housing market put homeowners who defaulted on their loans at greater risk than in the past few years. It is no longer as easy as it used to be for owners to sell their homes because they can`t repay their loans. Although the current economic development is good, but the next 12 months, the number of mortgage arrears is expected to increase.
She also noted that the number of post area investors or interest-only borrowers with higher default rates was higher and that such buyers were more likely to default on loans.
The last time the state defaulted was reported to have occurred in 2016, when 1.43 percent of homeowners failed to pay their loans in time.
Ten of the worst loan defaults in Victoria:
3170-Malgrave (Mulgrave)-3.57%
3037-Sidnham (Sydenham)-3.12%
3008-Duckland (Docklands)-2.95%
3064-Krekiborne (Craigieburn)-2.85%
3023-Bernside (Burnside)-2.77%
3630-Sharpton (Shepparton) Brendit (Branditt)-2.76%
3840-(Gippsland) Drillfield (Driffield)-2.64%
3178-Lowell (Rowville)-2.53%
3976-Hampton Park (Hampton Park)-2.51%
3020-Albien (Albion)-2.34%
