Nine News last night ran an interesting segment (above) on the growing mortgage stress across Greater Western Sydney, based on research by Digital Finance Analytics’ (DFA):
With Sydney dwelling values now falling:
It looks like a re-run of the post-2003 Sydney housing correction, which began in the West and South Western cheaper mortgage belts and slowly filtered inwards.
That’s where auction clearances have now collapsed. It happens in the West first because the demographics cannot support higher house prices for long. People are simply less wealthy and on lower incomes so affordability bites more quickly than further in.
But when these outer mortgage belts deflate they trap those that moved out to get a foot on the bottom rung of the property ladder with negative equity and the move-up ladder stalls, plateauing the wealthier burbs as well.
