The office figures show between January and July 2009, home repossessions were 30 per cent lower than during the same period last year. In total 300 fewer homes were forcibly taken from their owners.

The one big difference to the economic backdrop, is interest rates which have successively and sharply fallen over the past twelve months to be at record lows.
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Roger Mendelson, chief executive of debt collection agency Pruschka told the Sydney Morning herald “NSW was hit first and hit hardest when interest rates went up, because it had the highest house prices, and it was by far the worst state in terms of repossession.”

“Ironically, the financial crisis has benefited those people because most have retained their jobs, but interest rates are artificially low.”

The decline in repossession numbers are at odds with mortgage default cases lodged in the NSW Supreme Court, which show only a slight reduction in the past 12 months.

Mr Mendelson said this suggests home owners are agreeing to sell their homes, rather than be forced out.