Here's my thinking, according to the report yesterday on ABC TV on The Business program, Westpac has placed 2.6 percent of their mortgage book as repossessions. They are no longer classing them as merely high risk and the language has moved to taking action on people unable to pay. That really does not sound so bad until you start thinking about it. At 2.6 percent it means 1 in around 38 houses (38.46 technically) is about to be owned by, and sold by, Westpac.
One house in 38 needing to be sold does not sound very bad at all until you remember that Westpac is one of four major banks. If all major banks are looking at around that figure, then it fast becomes 1 in 8 or more houses (given that there are credit unions as well) that will be owned by the banks.
Not good. Still, a bargain to be had if I add in the vacant deceased estates that expect a cool half a million for a house older than I am. The news is scary and it seems like I am one of the few aware of the imminent threat, and opportunity approaching.
This article by the Daily Reckoning is worth looking at.