Mortgagee crunch: Homes seized for resale in as little as 13 months
Homes are coming back up for sale in as little as 13 months now as mortgagees lose patience with buyers struggling with interest rates and construction blowouts. SEE LIST OF PROPERTIES
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Homes are coming back up for sale in as little as 13 months now as mortgagees lose patience with buyers struggling with interest rate hikes and construction blowouts.
Luxury homes, entire townhouse developments, suburban cottages, unfinished houses and vast tracts of land are among properties back on the market this month after mortgagees exercised power of sale, with Moody’s Investors Service warning high interest rates and inflation will continue to push up mortgage delinquencies over the next 12 months.
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“Borrowers who took out mortgages at very low interest rates in the few years before the RBA started its monetary tightening cycle pose a particular risk,” the firm’s latest quarterly report warned, especially those between September 2020 and March 2022 who were assessed at an average serviceability rate that was now below current average variable rates.
It also feared home loan delinquencies would rise for those who took out fixed rates at record lows during the pandemic, which peaked at 46 per cent of total monthly housing loan commitments in July 2021.
“When the fixed rate term for a large share of these home loans expires over the next six to 12 months, borrowers will roll into mortgages with much higher interest rates, compounding the risk of delinquencies.”
Moody’s report – out Wednesday – found 1.26 per cent of prime quality home loans were at least 30 days in arrears in the March quarter, up from 1.05 per cent in December, with even worse results from nonconforming mortgages where borrowers have adverse credit histories (4.04 per cent, up from 3.35 per cent in December).
The number of mortgagees now prominently listing properties for resale is growing, with realestate.com.au showing 31 properties up for auction or private treaty sales this way.
Queensland had the highest level of mortgagee sales listed, with 10 currently on the market, including an entire townhouse complex with approval for a luxury development in Taringa and several large parcels of land that could yield multiple home sites.
Eight properties in Victoria are listed for resale by mortgagees, half of which go to auction over the next two weeks, including a 708sq m block of land in Hays Paddock, Kew East, about 7km from Melbourne CBD.
Western Australia had five homes publicly listed for sale by mortgagees, including a $2.2m apartment on the beach in Bunbury and a 410sq m block of land in East Perth.
South Australia and New South Wales had four apiece this week, including an equestrian centre in Jupiter Creek, a potential brothel business close to the train station in Fairfield and a luxury Ramsgate house complete with pool.
Tasmania, Australian Capital Territory and Northern Territory were all showing zero listed mortgagee sales.
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Real estate agent Carol Summerlin of Dixon Estate Agents Toowong has two mortgagee sales going under the hammer this month, which have been “hugely popular because of the diversity of buyers it has attracted strengthening the enquiry levels”.
A five-bedroom house at 130 Swann Road in Taringa, located less than 7km from the Brisbane CBD, goes under the hammer at 9.30am on July 15 after the mortgagee took over the property just over a year after the owner had bought it for $1.85m in March 2022.
The same mortgagee also seized a five townhouse property at 18 Montrose Road, Taringa just two years after the owner had bought it for almost $2.5m in June 2021.
Ms Summerlin said the property had already seen 31 inspections, 54 email enquiries and a dozen phone calls from local, interstate and overseas buyers. The auction is scheduled to be held on-site at noon on July 12.
Both properties were owned under company names, the directors of which were not publicly available.
For sale: Mortgagee-in-possession on realestate.com.au:
9 Barton Street, Holland Park West, Qld:
House, 3 bed, 2 bath, 1 car garage, 501sq m block
Auction Wednesday July 5, 5.30pm
18 Montrose Road, Taringa, Qld:
Block Of Units, 10 bed, 5 bath, 5 car garage, 1,282sq m block.
Auction Wednesday July 12
130 Swann Road, Taringa, Qld:
House, 5 bed, 2 bath, 1 car garage, 551sq m block.
Auction Saturday July 15
4207/1-7 Waterford Court, Bundall, Qld:
Apartment, 2 bed, 2 bath, 2 car garage.
Auction
14 & 16 Clerke Street, Burpengary East, Qld:
House, 4 bed, 2 bath, 2 car garage
Expression of Interest
3/11 Hooker Boulevard, Broadbeach Waters, Qld:
Apartment, 2 bed, 1 bath, 2 car garage
Auction
94, 96, 98 & 110 Park Ridge Road, Park Ridge, Qld:
Residential Land, 17.75ha
Under offer
Balance of Anchor Shores Estate, Tannum Sands, Qld:
Residential Land, 10 remaining house blocks from 784sq m to 892sq m (Avg. 835sq m), Available In-One-Line, Individually or Any Combination.
Under Offer
Lot 201 Waterview Drive, Lammermoor, Qld:
Residential land, 4.94ha
$2,600,000
Lot 101 Elizabeth Street, Childers, Qld:
Residential land, 4.7ha.
Under offer
5 Leason Street, Kew East, VIC:
Residential land, 708sq m.
Boardroom Auction July 7 5pm
22 Brights Drive, Tootgarook, VIC:
House, 3 bed, 2 bath, 4 car spaces, 612sq m block.
Auction Saturday July 15.
355A Camp Road, Broadmeadows, VIC:
Unit, 2 bed, 1 bath, 2 car spaces.
Auction Saturday July 22.
11 Sixth Street, Hepburn Springs, VIC:
Residential land, 793sq m
Auction Thursday July 27.
19 Lavers Hill – Cobden Road, Lavers Hill, VIC:
House, 2 bed, 1 bath, 1 car space, 11.7ha.
$550,000
3006/318 Queen Street, Melbourne, VIC:
Apartment, 2 bed, 2 bath.
Under offer
901 & 905 Bridge Inn Road & 260 Cookes Road, Doreen, VIC:
Residential land, 3.4ha
Auction Postponed Mortgagee in Possession
42 Queen Street, Rochester, VIC:
House, 4 bed, 2 bath, 2 car spaces.
14/21 Holman Street, Bunbury, WA:
Apartment, 4 bed, 5 bath, 2 car space, 416sq m.
Under offer $2,200,000
290 Echo Valley Road, Warralakin, WA:
Cropping, 3 bed, 1 bath.
Current bid $1.1m
7/23 Cooper Street, Madeley, WA:
Villa, 3 bed, 2 bath, 2 car spaces, 105sq m.
Under offer
63 Forrest Avenue, East Perth, WA:
Residential land, 410sq m.
Under contract
86 Waterous Road, Wagerup, WA:
Residential land, 21.74ha.
Expressions of Interest
15 Cassia Place, Ulladulla, NSW:
House, 3 bed, 2 bath, 1 car garage, 868sq m block.
Auction Wednesday July 12
14 Dillon Street, Ramsgate, NSW:
House, 5 bed, 4 bath, 2 car garage.
Auction Saturday July 22.
3 Alan Street, Fairfield, NSW:
Other, 4 bed, 4 bath, 6 car spaces.
Auction Wednesday July 26.
834/4 Stedman Street, Rosebery, NSW:
Apartment, 2 bed, 2 bath, 1 car garage, 96sq m.
$899,000
5 Bracken Avenue, Andrews Farm, SA:
House, 3 bed, 2 bath, 1 car space, 300sq m.
Auction Saturday July 8.
45 Nolan Place, Munno Para, SA:
House, 3 bed, 2 bath, 2 car spaces, 270sq m.
Auction Saturday July 29 at 11am
370 Berry Road, Jupiter Creek, SA:
Lifestyle/equestrian, 4 bed, 3 bath.
Contact Agent
Lot 52 Opal Creek Bvd, Andamooka, SA:
House, 3 bed, 1 bath, 2 car spaces, 5,764sq m block.
$265,000
(Listings source: Realestate.com.au)
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Originally published as Mortgagee crunch: Homes seized for resale in as little as 13 months
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