Mortgage stress of Sydney’s outer west

New South Wales is the home to 44% of Australia’s mortgage delinquencies where mortgage holders in the outer western and south-western suburbs of Sydney are the most at risk of losing their homes, according to a Moody’s Investors Service report on 750,000 housing loans.Mortgage stress

The national average delinquency rate is 1.34% while the areas listed below have more than 2% of mortgages which are more than 30 days behind in repayments.

These mortgage stressed suburbs include the following regions where delinquency rates are between 2.4% – 2.8%:

  • Fairfield / Liverpool
  • Canterbury / Bankstown
  • Macquarie Fields, Minto, Camden and Narellan
  • Penrith, Mount Druitt, Blacktown and Richmond

The arrears in the north-west area of Sydney represented 6.5% of all arrears nationally, although the region accounts for only 3.7% of home loans written in Australia.

The study above was based on mortgages which represented approximately 12% of all mortgages in Australia.

Sydney is forecast to have a median house price of $750,000 by June 2013, a 20% increase from the current $624,000 median house price according to a QBE housing survey compiled by researchers and forecasters BIS Shrapnel. Forecasters predict a 4% increase in prices this financial year and 6% in 2011 / 2012. The forecast 9% increase in 2012 / 2013 comes despite a forecast variable interest rate rising to 9.1% during this time.

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