Based on the Wikipedia, Arrear is a legal term for the part of a debt that is overdue after missing one or more required payments. Housing tenants are obliged to pay the rent at the end of month or on the due date. Will holidays play a big role why housing arrears are increasing? Will arrears continue to rise till the end of the first quarter of 2014?
According to Moody’s Investors Services, “The percentage of home owners a month or more behind on mortgage repayments lifted from 1.44% in December to 1.66% at the end of March. The increase was consistent across all mortgage providers, he added. Cutting the cash rate by 25 basis points play a big role why arrears lifted. Stagnation of local housing market and unemployment are factors really influence arrears also. Anyhow, despite of the negative perception, we still have hope and already forecasted, everything will going smoothly by the 2nd quarter of 2014. We will have a boomer and competitive housing market in 2014.