The number of houses and units resold at a loss in both capital cities and regional areas increased over the June quarter, according to the latest CoreLogic Pain & Gain report.
As much as 12.2% of houses and 19.9% of units in regional markets were sold below their previous purchase prices, continuing the loss-making resale trends that started in the August 2015 quarter for houses and the February 2016 quarter for units.
Meanwhile, capital city houses resold at a loss increased from 5.7% in the March quarter to 5.9% in the three months to June. 9.5% of units were also resold at a loss. The proportion of loss-making resales over the quarter increased across each capital city with the exception of Melbourne and Canberra.
In spite of these figures, CoreLogic head of research Cameron Kusher said that these numbers are still considered to be low historically.
“While loss-making resales increased over the quarter, historically, most cities are still seeing quite a low instance of homes reselling at a loss,” said Kusher.
are the exceptions, with the proportion of loss-making resales at, or close to, historic highs.”
As much as 20.1% of Perth homes were resold at a loss, while Darwin registered 24.2% – the highest proportion since December 2002.
Units sold at a loss were also higher in number compared to houses across capital and regional markets. Only Sydney had a lower proportion of units reselling at a loss compared to houses.
“Houses have typically recorded a superior rate of capital growth to that of units and those houses reselling at a profit tend to record a much greater profit than units. These factors go some way to explaining why units are recording a much higher proportion of loss-making resales than houses,” said Kusher.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out