Quote:
Originally Posted by Yellow_Festiva
Come September when the loan deferrals expire there will be a bunch of home owners under severe mortgage stress if the economy doesn't return to near normal.
They are suggesting extending the deferral program.
For how long? The banks are in a bind - they may be left holding housing stock that's worth less than the loan against it.
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That's a fair point. With the loan deferral program running things aren't changing yet. But i'm not completely convinced they will anyway.
Local land sales dropped right off when the first lock downs started, but once talk of restrictions being eased surfaced, sales went straight back to where they were previously. And auction prices have not dropped at all. Still places selling for well over the reserve price.
Outside of the overpriced capital cities I think it's hardly even going to drop.