Selling your home? Chances are you’ll double your money
Nearly a third of home sellers are doubling the previous purchase price, a new report has found.
The CoreLogic Pain and Gain Property Report has revealed 31.9% of properties sold in the March quarter sold for more than double their previous purchase price. The report found the total value of homes resold at a profit was $12.9 billion. The average gross profit made on the homes was $239,855.
Not all vendors were so lucky, however. The report found a rise in the proportion of homes sold at a loss. During the March quarter, 9.2% of homes resold recorded a gross loss, compared to 8.3% from the final quarter of 2015 and 8.8% a year ago. Regional properties were more likely to sell at a loss than capital city properties, with 13.1% of regional properties recording a loss versus 6.9% of capital city properties.
“The trends in regional areas are shifting with the proportion of loss-making resales trending lower in areas linked to tourism and lifestyle. On the other hand, housing markets linked to the resources sector are generally seeing an elevated level of loss-making resales after housing market conditions in many of these locations have posted a sharp correction,” CoreLogic research analyst Cameron Kusher said.
For vendors making a profit, a buy and hold strategy seems to be the most effective. Homes sold at a loss in capital cities had been owned an average of 5.4 years compared to 10.1 years for homes sold at a profit and 17.2 years for homes that sold for more than double their previous purchase price.