It will not come as a shock to anybody following the current activity in the property market to find out that a major bank recorded a 50% year on year increase in properties in possession and bond foreclosures in the month of August.
This is of course due to the financial strain most households are under due to the interest rate increases over the last two years.What is also frightening is that foreclosures and taking a property into possession are the absolute last resort lenders will take to recover their money.
With a basic figure of distressed sales increasing by 20% month on month the situation will most likely worsen in the coming months.
Statistics released by Auction Alliance have reported a 21.5% growth in the number of bonds 1 month in arrears between the first and second quarters of this year resulting in a figure of 70 000.There is also the figure for bonds that are more than 4 months in arrears for the same period that has risen from 18 000 to 25 000.
While the statistics sound pretty scary we are said to be better off than the rest of the world.This will probably be no comfort at all to those who have already lost their homes or those whose homes are in danger of being foreclosed upon.
But take heart,the picture is predicted to get far better in the second quarter of next year with the expected interest rate cut in April.
