RESIDENTIAL PROPERTY
FALLING in line with the housing downturn, the share of Australian dwellings making a nominal gain from resale has dropped for the third consecutive quarter.
According to CoreLogic’s latest Pain & Gain Report, the portion of dwellings that made a nominal gain from resale fell to...
Gains from residential resales across the country are still significant, with loss-making sales at the national level still...
Over the quarter, the number of loss-making sales was up 4.6%, with the number of resales overall declining 6.5% from...
While the rate of loss-making sales nationally across the house market increased by 20 basis points to 3.8% in the quarter, the share of...
“Given there is generally a higher concentration of investment ownership in the unit sector, the increase in servicing...
The drop off in profit making sales over the last three quarters has tracked in line with the seemingly short-lived housing market downturn...
The profitability of Australian homes declined at a faster rate in the first quarter compared to Q4 2022, down 80 basis points and...
“As you would expect, changes in the portion of profit-making sales tends to move together with the capital growth trend,” said Owen...
“So, it’s unusual to see a sharper deterioration in profits through the March quarter, when prices were starting to stabilise. This could be linked to...
Over the March quarter, the number of resales owned for less than two years increased, with those that sold for a nominal gain increased to...
While the portion of loss-making resales with a hold period of less than two years jumped from 3.4% in March 2022 to...
“Such short selling times that involve sellers incurring a loss may be considered unusual, because hold periods typically increase during housing...
“The implication may be that some sellers are choosing to incur a loss from resale in order to avoid particularly high mortgage repayments in...
Smaller cities saw greater gains over the quarter, with the rate of profit-making sales at its highest in Hobart, at...
Canberra and Adelaide followed with 98.1% of resales making a nominal gain, with Brisbane seeing a minor rise to...
With Sydney reporting a 10.7% incidence of loss-making sales over the quarter, its highest since the three months to August....
“There may be some motivated selling reflected in the next few quarters where property owners willingly sell at a loss to...
“The combined factors of a recent sharp downturn in home values, and rising mortgage rates, may be inducing a higher incidence of...