New data confirms buyer determination
As we’ve mentioned in some of our recent posts, the property market during the past couple of years has provided some interesting lessons for all of us on market resilience and people’s determination to move forward on their property journey despite whatever challenges may be impacting on those plans at the time.
These lessons were reinforced this week when Corelogic published their latest ‘Pain and Gain’ Report. If you haven’t come across the report before, it looks at property sales results across the country, comparing the sale price of properties that were sold during that period with the price that was paid the last the same property changed hands.
The report for the September quarter last year found that the rate of profit-making resales of residential real estate rose to 92.4 per cent in the third quarter of 2021, up from 87.5 per cent in the same quarter of 2020. This was despite the impact of the lockdowns that affected the property market is Sydney, Melbourne and the ACT during this period.
When you look beyond the headline numbers, there were a couple of interesting underlying trends that came from these figures.
For example, the increase in demand from tree-change and sea-change buyers meant that regional Australia had a higher rate of profitable resales than the capital cities, with 93.1 per cent of sales being profitable in the regional markets verses 91.1 per cent in the cities.
The report also found that house resales had a slightly higher chance of achieving a profit than units, (95 per cent versus 86.5 per cent), although that gap does appear to be narrowing somewhat in recent times.
Based on around 99,000 September property sales that were analysed for the report, the median holding time before selling a property was 8.8 years. Not surprisingly, properties that were held for more than 30 years achieved the highest overall profits, averaging around $745,000. However, due to the strength in the recent market, the report also found that properties sold within two years of purchase achieved the highest average rate of annual growth, achieving close to $120,000 per year.
Of course, while reports like these provide some interesting insights into the overall market at a national level, they do not provide specific information on how much more your own individual property in the City of Hume could be worth in the current climate. So if you’re interested in getting an accurate update, even if you just want to make sure that your insurance has the right level of coverage, don’t hesitate to give one of the team at Barry Plant Gladstone Park on 9330 1088.
Best wishes,
Nick Pugliese - Sales Director
and Bill Karp - Director
Barry Plant Real Estate
Gladstone Park