A distressed sale refers to when a property owner is struggling to make their mortgage repayments and puts their property on the market.
The data, from Domain, shows that such sales have trended down this year despite rising inflation and interest rates.
Eight of the top 10 regions for distressed sales across Australia are in Queensland. One reason for this is that interstate buyers crossed the borders during the pandemic to buy holiday homes or investment properties and they didn’t anticipate interest rates rising as quickly as they have, says Domain.
But the drop in distressed sales is still a surprising result and shows owners are adjusting to higher mortgage repayments and living costs and hanging on to their homes.
Sunnybank tops the distressed sale list in Queensland with around 13% of properties in this suburb considered distressed sales, whereas across Brisbane the figure is less than 5%.
Some lifestyle areas including the Gold Coast are doing it tough with areas like Mudgeeraba-Tullebudgera showing 11.9% of listings as distressed and Southport where 11.6% are distressed.
While it can be distressing to sell a property that you can no longer afford, getting advice early can help you through such a situation. Get independent financial advice and get ahead of your situation as soon as you can.
If you’re thinking of downsizing your mortgage, talk to local agents to find out how much your home is worth or where good value properties may lie within your ideal budget.
Wondering what your property budget can buy? Contact us for a chat or view our current listings for sale.
Thinking of selling? Find out how much your property is worth or talk to us about selling.