Housing Crash 2019??

Australian housing prices across the country are falling while household debt levels are at world record high.
Now with Westpac raising rates and tighter lending standards across the industry due to the Royal Commission.

Will we see 90 day mortgage delinquencies start to raise over the coming months??? Will prices continue to fall?
What is the affect to Westpac’s bottom line? Will they cut dividends ?

I wonder if shareholders are even aware of Westpac’s current exposed to the housing market.
Exactly how exposed to Westpac to the recent Australian housing boom and at what stage does this become a certain to shareholders?

From hundreds of hours of reading and research, it looks like Westpac is the most exposed of the big 4 to the housing market. So I am focussing only on Westpac. The other banks could be exposed but the first signs of trouble will probably show on Westpac’s assets.

What if house prices drop 30 to 40% and mortgage faults raise to 5% ???? There are many different possible scenarios. But I do not believe for a second that a ‘soft ‘landing of -10%’ is one of them.

Sydney is now down 6% from the top.
Perth is down over 20%.

Is a final scenario like Spain or Ireland possible? Time will tell.
I cant see Westpac surviving this type of scenario........


(this is only an opinion, DYOR)