New data proves that property doesn’t always rise in value

More homes are selling at a loss than last year, with vendors incurring a $66,000 deficit in the average loss-making resale.

According to CoreLogic RP Data, 9.1 per cent of home resales that occurred in the June quarter sold for less than the previous purchase price.

That compared to a gross loss rate of 8.6 per cent in the June 2014 quarter.

The share of loss-making capital city sales increased from 6 per cent to 6.1 per cent, while the share of loss-making regional sales increased from 14.6 per cent to 15.2 per cent.

In the capital cities, homes that were sold at a loss had been owned for an average of 5.3 years.

Homes that were sold for a gain had been held for 9.9 years, while homes that yielded a gross profit of at least 100 per cent had been held for 16.4 years.

In the regions, homes sold for a loss had been owned for 6.4 years, while homes sold for a gain had been owned for 10.2 years and homes sold for a 100 per cent gain had been owned for 17.6 years.

The average loss incurred in loss-making resales was $66,000 throughout Australia, or $79,000 in the capitals and $55,000 in the regions.

The average gain in profit-making sales was $259,000 – $314,000 for capital city homes and $139,000 for regional homes.

CoreLogic RP Data said the proportion of loss-making resales has been trending lower in Sydney, Melbourne, Brisbane, Hobart and Canberra, and higher in the other capitals.

“Across Perth and Darwin, in particular, there has been a fairly rapid lift in the proportion of loss-making resales over recent months,” according to CoreLogic RP Data.

“This is mirroring broader housing market conditions where value growth has stalled, listings are rising, sales are falling and rental rates are reducing.”

[Related: East coast agents urged to learn tough west coast lessons]

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