More homeowners are selling off their property at a loss, as Aussies try to avoid rising mortgage repayments.
New research from CoreLogic found the number of properties making a profit dropped to 92.3 per cent over the March quarter, marking the third consecutive quarter of decline.
Darwin had the highest rate of loss-making sales, with 29.5 per cent of properties selling for a loss. This was followed by Perth, with 13.8 per cent.
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Sydneysiders made a loss on 10.7 per cent of property sales, the highest rate since August 2009, while Melbourne residents copped a loss on 10.2 per cent of sales.
On the other end of the spectrum, Hobart recorded the most profit-making sales (99 per cent), followed by Canberra and Adelaide (both 98.1 per cent), and then Brisbane (95.7 per cent).
CoreLogic head of research Eliza Owen said average gains remained substantial overall, but noted profits were dropping despite the rate of decline in home values easing.
“It’s unusual to see a sharper deterioration in profits through the March quarter, when prices were starting to stabilise. This could be linked to more short-term selling,” Owen said.
CoreLogic found there was an increase in the number of homeowners who were selling after less than two years.
“Such short selling times that involve sellers incurring a loss may be considered unusual, because hold periods typically increase during housing-value downturns, as sellers try to avoid making a loss,” Owen said.
“The implication may be that some sellers are choosing to incur a loss from resale in order to avoid particularly high mortgage repayments in the current rate-hiking environment.”
More than one in 10 Sydney and Melbourne property sellers copped a loss over the March quarter.
Here were the suburbs in the two cities with the biggest percentage of loss-making sales and their median losses:
Strathfield – 35.1 per cent of sales, $40,000 loss
Botany Bay – 33.8 per cent of sales, $60,500 loss
Burwood – 31.9 per cent of sales, $45,000 loss
Parramatta – 28.8 per cent of sales, $57,000 loss
Ryde – 25.1 per cent of sales, $58,500 loss
Melbourne city – 46.6 per cent of sales, $55,000 loss
Stonnington – 29.2 per cent of sales, $55,700 loss
Boroondara – 25.9 per cent of sales, $37,000 loss
Yarra – 22.3 per cent of sales, $40,000 loss
Port Phillip – 21.1 per cent of sales, $46,250 loss
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