Home sellers in regional Australia facing losses
While parts of Australia are experiencing a boom in residential property prices, a growing number of homeowners are selling their homes at a loss.According to the latest CoreLogic RP Data Pain and Gain report, 9.1 per cent of all homes resold in the June quarter recorded a gross loss when compared to their previous purchase price.The average loss was A$65,585.The proportion of loss-making sales was up from 8.9 per cent in the March quarter and 8.6 per cent in the June quarter last year.CoreLogic RP Data senior research analyst Cameron Kusher said the rate of loss-making resales was higher in regional areas than in the capital cities."Housing markets linked to the resources sector are generally seeing an increase in loss-making resales after housing market conditions in many of these locations posted sharp corrections," Kusher said.During the June quarter 47.6 per cent of resold properties in Mackay, Queensland, sold at a loss. The proportion in Fitzroy, Western Australia, was 35.6 per cent and in the Hunter Valley, New South Wales, it was 10.9 per cent.Length of ownership also played a part in resale values. Homes that were sold at a loss were owned for an average of 5.3 years. The average length of ownership for homes sold at a profit was 9.9 years and homes sold for more than double their previous purchase price were owned for an average of 16.4 years.Almost one-third (30.8 per cent) of homes resold during the quarter recorded more than double their previous purchase price.