Average $69,000 loss when 9% sold property in 2015 March quarter
Over the March 2015 quarter, 9.1% of all homes recorded a gross loss when resold, and when compared to their previous purchase price, according to CoreLogic RP Data.
This figure was slightly higher than the 8.6% recorded at the end of 2014, but lower than the 9.6% over the same quarter last year.
There was an average loss of $69,468.
But while 9.1% of resales were transacted at a loss, 90.9% of properties resold over the quarter sold at a profit.
CoreLogic RP Data's Cameron Kusher noted that 30.7% of homes resold for more than double their previous purchase price.
"Across those homes which sold at a profit, the total value of this profit was recorded at $13.8 billion with the average gross profit recorded at $230,633."
The lowest proportions of loss making resales are currently found in: Sydney (2.4%), Melbourne (6.2%), Perth (6.7%) the regional NSW (8.6%).
The highest proportions of loss making resales were recorded in: Regional WA (21.0%), Regional Qld (20.9%), Regional TAS (19.8%) and Regional SA (17.0%).
Across the country, those homes that resold at a loss had an average length of ownership of 6.0 years.
Across all sales recording a gross profit the average length of ownership was recorded at 10.0 years, while homes which sold for more than double their previous purchase price were owned for an average of 16.8 years.
According to Mr Kusher, the data also highlights the fact that ownership of property, whether for investment or owner occupier purposes should be seen as a long-term investment.
CoreLogic RP Data's quarterly Pain & Gain report, highlighted regions where properties sold for less than their initial purchase price.
Leading the results for the largest proportion of loss-making re-sales is unit dwellings within lifestyle markets.
According to research analyst Cameron Kusher, an interesting trend to emerge throughout each of the capital city housing markets is that the proportion of loss-making resales is now lower than each of their recent post financial crisis peaks.
Sydney, Melbourne, Brisbane, Hobart & Canberra recorded the lowest proportion of loss-making resales while in the remaining capital cities the proportion of losses is trending higher.
Across Perth and Darwin, the results show a rapid lift in the proportion of loss-making resales over recent months. This is mirroring broader housing market conditions where value growth has stalled, listings are rising, sales are falling and rental rates are reducing.
For the regional areas of the country, the proportion of loss-making resales is higher than those within the capital cities with resales trending lower in Regional NSW, Regional SA and Regional TAS, is relatively flat in Regional Vic and Regional Qld and trending higher in Regional WA and Regional NT.
