Mortgage customers in Australia foresee further decline in home prices next year, which may leave many home loan borrowers facing negative equity issues.

According to a report by Realty Biz News, several property experts warned that some people on the property ladder may be left “under water” next year, despite Australia’s real estate market having fared much better than other countries since the economic downturn.

The report noted that cases of negative equity, where a person ends up owing more than their property value, are still quite rare, though a four percent decline in home prices this year has not helped the issue.

The percentage of late loan payments, which dropped from 1.77 to 1.42 percent in September, is also a good sign.

Moreover, experts are now predicting that home prices in the country could fall by as much as five percent next year, which could test the steadiness of the Aussie property market.


Related stories

New mortgage loans in HK down 8%

US mortgage delinquencies to slide further next year

US mortgage interest rates hit new lo

POST COMMENT