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CoreLogic Pain & Gain Report Reveals Biggest Winners & Losers

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Australia’s biggest winners and losers across capital city and regional property markets over the June 2015 quarter, were today released in the latest CoreLogic RP Data Pain and Gain property report.

The Pain and Gain report revealed that 30.8% of resales earned a doubling in profits for owners over the quarter which was based on the previous purchase price of the dwelling, while the proportion of loss-making resales rose.

CoreLogic's Senior Research Analyst Cameron Kusher explained that for resales incurring a gross loss over the December quarter, the average length of ownership was just 5.9 years. Properties that recorded a gross profit were held for an average of 10.2 years, while those homes that resold for more than double the previous purchase price were owned for an average of 16.8 years.
Across the country:

  • Homes that resold at a loss were owned for an average of 5.3 years.
  • For those to profit from a resale, the average length of ownership was 9.9 years.
  • Homes which sold for more than double their previous purchase price were owned for an average of 16.4 years.

  • Dwellings losses over the quarter amounted to $411.3 million; an average loss of $65,585 per sale.
  • Profit-making resales recorded a healthy $16.1billion, grossing owners $259,174 in profit.
  • While 9.1% of resales were transacted at a loss, the vast majority (90.9%) of properties resold over the quarter did so at a profit and 30.8% of homes resold for more than double their previous purchase price.
  • 9.1 % of all homes resold of the June quarter recorded a gross loss when compared to their previous purchase price, and slightly higher than the results for the March 2015 quarter at 8.9% and a slightly higher result than the 8.6% recorded over the June 2014 quarter.
  • Sydney remains as the only capital city housing market in which units had a lower proportion of resales at a loss (1.8%) than houses (2.2%) over the quarter.
  • For the capital city and regional markets, the lowest proportions of loss making resales are currently found in: Sydney (2.0%), Melbourne (5.7%), Perth (8.6%) and Regional Vic (8.6%).
  • The highest proportions of loss making resales were recorded in: Regional WA (24.5%), Regional Qld (22.5%), Regional SA (20.9%) and Regional Tas (19.9%).
  • During the second quarter of 2015, 7.7% of houses resold for less than their previous purchase price compared to 12.6% of unit resales.
  • Across the capital cities, 5.0% of houses resold at a loss compared to 8.4% of units and in regional markets 12.5% of houses resold at a loss compared to 23.8% of units.


To view the full CoreLogic Pain & Gain Report click here.

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Article originally posted at: https://https://theurbandeveloper.com/articles/corelogic-pain-gain-report-reveals-biggest-winners-losers