Negative Equity fears for Australian households

April 15, 2019

That dreaded phrase, negative equity, which has been clear of the headlines for many years here in the UK, but halfway across the globe it is a rumour that has a growing trend and likelihood of rearing its ugly head.

“Risks to the household sector have increased over the past six months given weak housing market conditions… ” stated RBA via their latest Financial Stability Review.

A report on the Finance Nine website looks at the warnings coming from the Reserve Bank that more and more households in Australia could be falling in to negative equity as property prices continue to fall. This situation could be damaging to many home owners and would be home owners where lending becomes tighter and the option to sell property to resolve situations becomes a negative financial decision.

The current rate of price falls is one of the largest on record as quoted by National Australia Bank (NAB) Group Chief Economist Alan Oster.

Title image provided free by Pixabay.

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Letting Agent Talk

Five key tax mistakes made by landlords

By Allison Thompson, National Lettings Managing Director, Leaders Landlord tax is a hugely complicated area, so if you are investing in buy-to-let or renting out any property you own, it’s well worth consulting a specialist property tax adviser. They can help ensure you: a. Own, let, take income and realise gains from your investment in…
Read More →
Breaking News

House prices post third consecutive quarter of growth

The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market continued to demonstrate positive momentum during the third quarter of this year, with house prices increasing for a third consecutive time, although the rate of growth seen did slow considerably when compared to the…
Read More →
Breaking News

Estate agent predicts ‘Boxing Day Bonanza’ as property market reignites

A leading estate agent is forecasting a “Boxing Day Bonanza” for home movers. Brendan Kay, Managing Director of Parkers Properties in West Oxfordshire, says that the “market is coiling and about to spring” after months of inertia driven by Budget uncertainty. Brendan, who has offices in Witney and Eynsham, looks after clients in some of…
Read More →
Estate Agents should not all look the same
Breaking News

Agent numbers set to grow by 4% in 2026

The latest research from The Property DriveBuy reveals that the number of estate agency businesses in the UK could be set to increase by over 4% in 2026, marking another year of solid expansion for the sector and further increasing the level of market competition. Property DriveBuy analysed available Office for National Statistics data (2017-2025)…
Read More →
Breaking News

Rental supply climbs 15% despite landlord uncertainty

The latest research from Dwelly has found that, despite what has been an incredibly uncertain year for landlords – marked by political back and forth over the Renters’ Rights Act, its eventual approval, and the additional 2% tax hit delivered in last week’s Autumn Budget – there are currently 15% more rental homes available to…
Read More →
Breaking News

FCA sets out plans to help build mortgage market of the future

First-time buyers and the self-employed could get a step-up onto the housing ladder, under new plans from the FCA. Its priorities for reforms to the mortgage market also include helping homeowners unlock housing wealth for a more comfortable later life. The FCA will focus on 4 areas: First-time buyers & underserved consumers: Simplifying mortgage rules…
Read More →