Login
iscover
In good news for agents, more than nine in 10 vendors made a profit from selling property in the June quarter – with the average seller pocketing $265,000 more than they’d initially paid for their property.
In the latest Pain & Gain Report from CoreLogic, it was revealed that 91.5 per cent of property resales sold for more than their owners had previously purchased the property for.
It’s attributed the high levels of seller success to tight listings, record-low mortgage rates, and “extraordinary” growth in housing values across many of Australia’s markets.
According to CoreLogic’s head of research and the author of the report, Eliza Owen, it’s the fourth straight quarter that profit-making residential property sales figures have grown.
Approximately 106,000 dwelling resales took place in the June quarter – a 9 per cent increase in total resales compared to the March 2021 quarter.
Ms Owen said the number of resales “really does reflect the extraordinary recovery in housing values following a small downswing induced by the initial impact of COVID-19”.
For vendors who were looking to take advantage of the market, the typical hold period on all resales for the three months to June was 8.8 years.
The strong market offer meant vendors who did take advantage scored, on average, a gross resale profit of $265,000.
Median gross losses for the same period were -$43,000.
While the longer an owner does hold on to their home generally bodes well for their resale potential, Ms Owen has noted that even newer purchasers are seeing sizeable gains from their position on the property ladder.
Property owners reselling after just two years are already pocketing a median return of $123,000.
And this figure only grows the longer a vendor does hold on to their home: “For those cashing in after over 30 years of holding a property, the median return was $712,000.”
According to Ms Owen, it’s good news for agents.
“Such high levels of profitability may start to encourage vendor participation and bring down typical hold periods, especially as major cities navigate a path out of 2021 lockdowns.”
She revealed that the highest instances of profitability were achieved across regional and tree change markets.
Regional Victoria’s Ballarat SA4 region has led the way, achieved a record high rate of profitability with 99.7 per cent of resales across the quarter leading to a profit.
It’s a similar story across the entirety of regional Victoria, where 98.7 per cent of resales found buyers above their original purchase price.
Sydney also saw strong results for sellers – resulting in an almost four-decade high result for vendors.
“97.6 per cent of Sydney house resales achieved a level of gain, the highest level of profit-making resales since 1982,” Ms Owen reported.
“Even markets with relatively elevated levels of loss-making resales saw vast improvement through the June quarter, as the rate of loss-making resales declined -4.6 percentage points across Perth in the June quarter, and -4.7 percentage points across Darwin.”
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
You are not authorised to post comments.
Comments will undergo moderation before they get published.