Home buyers love a good “forced sale” and we’re often asked if we have any mortgagee sales pending. But we just aren’t seeing that many in Brisbane’s inner-city. And a recent article from researcher Phil Ruthven of Ibisworld might help explain. “In the middle of the year, the nearly 9 million occupied households in Australia were valued at a net worth of $6.3 trillion – an average of $714,320 per household.” That’s a fairly impressive level of net assets and he comments that our average wealth continues to climb.
Brisbane-based property commentator Michael Matusik adds some valuable insight into why we’re not witnessing banks stepping in to sell up property: “Our higher saving rate is well documented, but exactly how it is being achieved doesn’t get much commentary. It is not just a simple case of saving more money. For the most part, Australians are saving more by repaying more than the minimum on their housing loans.”
Matusik never shirks from offering an opinion. “The fact that we are paying off our mortgages faster is often ignored by the doom and gloom merchants who predict a repeat here of what occurred overseas, and continue to preach about the pending mother of all property crashes. Yet, according to AFG, the average new loan-to-value ratio is a comfortable 67% and the latest ABS figures show that house prices fell just 2.2% across the Australian capitals over the last twelve months. Yawn. And yet we keep on reading about mortgage stress and impending doom.”
Bargain hunters might get tired of waiting…