A surge in the number of homes being repossessed in Sydney points to the devastating impact of interest rate rises for some borrowers.
Homeowners facing repossession of their properties is set to double.
The latest figures from the NSW Supreme Court show 346 writs were issued for repossession in the six months to June 30 — that’s 13 a week.
By comparison there were 390 repossessions for all of last year and just 284 in 2021.
The process is a last resort when a borrower can’t make their mortgage repayments.
The lender must apply to the Supreme Court for an order to take possession of the property and sell it to recover the outstanding loan.
My Housing Market chief economist Dr Andrew Wilson said it is a “lagging indicator” of the market.
Read Related Also: Hersha Parady, Little House On The Prairie Actor, Dead At 78
“Repossession data tends to reflect on what’s happened before,” Wilson said.
“And, of course, we must remember that Sydney house prices, while doing very well at the moment, fell by 9 per cent last year.”
That more buoyant market tells the tale of two Sydneys; while some are struggling, others are still in the bidding.
An auction at Chipping Norton yesterday for a five-bedroom home attracted a huge crowd and a final sale price of $1.8 million.
Revealed: The top 20 suburbs in Australia where nobody wants to sell
That’s above recent nearby sales and what bidders expected.
