Up 60 pc: Distressed property listings soar amid flood of new homes

A sharp rise in distressed property listings is emerging as the latest pressure point in Australia’s housing market, just as a flood of homes for sale hands buyers more power heading into spring. New SQM Research figures reveal distressed listings jumped another 4.2 per cent in August and are now 10 per cent higher than a year ago — with increases of more than 50 per cent in some parts of the country. SQM Managing Director Louis Christopher. At the same time, the number of homes sitting on the market is almost 13 per cent higher than this time last year, dramatically shifting the landscape for buyers who have spent years battling a shortage of stock. Distressed listings have soared 59.5 per cent in the ACT over the past year, 50 per cent in South Australia and 40 per cent in Western Australia. Queensland is also flashing warning signs, with distressed listings jumping 8.2 per cent in August alone to 1497 — a massive 25 per cent increase in just 12 months. Distressed home listings jumped 8 per cent in Queensland in August. SQM Research managing director Louis Christopher said the numbers were not yet evidence of widespread mortgage distress — but the change in direction was signific...