Quick observation

I know we have been talking about the back log of properties that will be hitting the market when this lockdown ends and the recent Westpac calibration on the property market correction to a more conservative figure than initial estimates. I would like to bring your attention to the following figures:

The MIP ( mortgagee in possession figures for Victoria, released by core logic recently.) Great news that virtually no MIP for Victoria however we all know this a figure underpinned by the mortgage amnesty. The figure one need to observe is the -25.53% figure.This tells us that forgetting Covid there is likely a backlog of 25% of outstanding MIP properties that have benefitted from the bank moratorium and jobkeeper that needs to be added on top of Covid induced distressed upon expiration of these two assistance packages.

It is likely the banks will work with clients to some degree resulting in a smattering of MIP sales over the following 2 years as opposed to a clear month or line in the sand when the market will be flooded with forced sales.