buyers forced to pay after low valuations

Pretty dire article in Saturday's AFR:

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- Housing markets on the outskirts of Australian Cities are showing signs of stress & Banks are concerned refusing to accept "Sale Price Valuations" in a housing market that is falling.
- Banks are forcing Buyers to tip in 15% more money to cover the shortfall between developers "Sales Valuations" & Their "Bank Valuations" or forfeit the sale.
- Major Melbourne Developers reporting a "Large Increase" in buyers cancelling sales after coming up short of "Bank Valuations"
- Cancellation rates that were only at 10% 12 months ago are now running at 25% with many buyers walking away from House & Land contracts.
- Major Developer Mirvac reporting a "Sharp Rise" in contract "Cancellations" right across Australia because of "Bank Valuations" coming up short.
- Property "Experts" are warning of a "Bleak Outlook" for new estates on the outskirts of Australian Cities with further "Price Falls" expected despite RBA cuts in interest rates.
- New Housing Estates were the "Greatest Risk" in today's property market & were now at the "Margins"
- Developers were now offering buyers "Extended" settlement periods so that Buyers could save up discrepancy between "Bank Valuations" & "Sales Valuations" to appease the banks.
- Builders & Developers offering "Artificial Rebates & Bonuses" to maintain a high "Face Valuation" to banks so that Buyers can borrow enough to procede with contracts.
- Example given of a ING Bank Valuation that came in recently at $174,000 against a Binding contract a buyer had signed 12 months earlier for $200,000