SYDNEY, Sept 1 Reuters Australia39;s housing market downturn is squeezing many home sellers into a double bind They39;ve taken out a mortgage for a new home but are holding out for a good deal on their old place, forcing them also to hold a bridging loan to cover their previous mortgage.

And with prices now falling at their fastest pace in four decades, a sharp reversal from the 25 annual price rises seen just a year ago, the durations of those bridging loans are doubling or even quadrupling from their typical threemonth span.

This has been good news for many lenders in an otherwise shrinking mortgage market, where falling house prices and rising interest rates are driving away business, but it means more financial stress for borrowers still braving the market.

I think there are people who have been caught out, said Julie Buchanan, a seller39;s agent in Sydney who recently extended a marketing campaign for a highend property to three months from six weeks, due to lukewarm buyer interest.

A lot of them have had to have their price expectations revised, she said. If they can39;t get the price then bridging finance is something they use to get them over the line. Then they39;re potentially holding two properties.

Most properties still sell within the threemonth timeframe of a standard bridging loan The average home in Australia39;s major cities took 31 days to sell in August, while sellers may also factor in a contract settlement time of about six weeks.

But that was…