Record Property Profits for Australian Resellers Despite Slower Market

Australians are making a record $295,000 median profit when reselling their property, despite slowing market conditions, a new report from CoreLogic has revealed. Analysing 95,000 resales over the September quarter, the latest Pain and Gain report found people selling their homes had hit a record median profit since the series started in the mid-1990s. Only 5% of resales made a loss, the report found – the lowest level since March 2008.

The median loss from resale was steady on the previous quarter at $40,000, but up slightly from the five-year average of $39,000.Total nominal gains from resale were just under $34bn in the quarter, up from $33.3bn in the previous quarter. Combined losses were $270m, compared with $292.4m in the previous quarter. CoreLogic’s head of research, Eliza Owen, said the results could be attributed to 0.8% growth in national home values through the quarter on top of reasonably strong housing demand conditions.“A decline in home values is only a problem for sellers if they have issues servicing home loan repayments, or are in some other circumstance where they need to sell,” she said. “Otherwise, homeowners can simply hold their properties back from the market until such time as there is stronger buyer demand.” “That being said, there are still clearly pockets of pain where home sellers need to offload their property in spite of weak market conditions, or values remaining substantially below previous record highs.”Melbourne was the only capital city market to see an increase in the rate of loss-making sales, with 9.9% of sales recording some loss. At the other end of the spectrum, Brisbane was the most profitable city for the second consecutive quarter. Of the resold homes in the quarter, 99.4% made a nominal gain, up from 99.2% in the previous quarter, and 97.4% a year ag

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