Pain & Gain Report - released September 2015

Released September 2015, the Pain & Gain Report is a quarterly analysis of homes which were resold over the quarter.

About the Report

The Pain and Gain Report is a quarterly analysis of homes which were resold over the quarter.  It compares the most recent sale price to the previous sale price in order to determine whether the property sold at a gross profit or gross loss.  It provides a proxy for the performance of each housing market and highlights the magnitude of profit or loss the typical seller of a home makes across those regions analysed.

Findings

  • Dwellings losses over the quarter amounted to $411.3 million; an average loss of $65,585 per sale.
  • Profit-making resales recorded a healthy $16.1billion, grossing owners $259,174 in profit.
  • While 9.1% of resales were transacted at a loss, the vast majority (90.9%) of properties resold over the quarter did so at a profit and 30.8% of homes resold for more than double their previous purchase price
  • 9.1 % of all homes resold of the June quarter recorded a gross loss when compared to their previous purchase price, and slightly higher than the results for the March 2015 quarter at 8.9% and a slightly higher result than the 8.6% recorded over the June 2014 quarter.
  • Sydney remains as the only capital city housing market in which units had a lower proportion of resales at a loss (1.8%) than houses (2.2%) over the quarter.
  • For the capital city and regional markets, the lowest proportions of loss making resales are currently found in: Sydney (2.0%), Melbourne (5.7%), Perth (8.6%) and Regional Vic (8.6%).
  • The highest proportions of loss making resales were recorded in: Regional WA (24.5%), Regional Qld (22.5%), Regional SA (20.9%) and Regional Tas (19.9%).
  • During the second quarter of 2015, 7.7% of houses resold for less than their previous purchase price compared to 12.6% of unit resales.
  • Across the capital cities, 5.0% of houses resold at a loss compared to 8.4% of units and in regional markets 12.5% of houses resold at a loss compared to 23.8% of units.

Proportion of total reseals at a loss/gain, houses vs units, June 2015 quarter

2015-09--paingain-IMG

Table available on page 6 of the report

To read the CoreLogic RP Data Pain & Gain Report click on the Download Report button at the top left of the page.