Regional home owners making profits
REGIONAL property markets across Australia are gaining in strength, with the Coffs Harbour and Grafton areas performing particularly well.
The CoreLogic Pain and Gain Report for the December quarter of 2017 shows the vast majority of home sales (nine out of 10) in Australia are turning a profit for their vendors.
The report tracks home sales across Australia and reveals the proportion of properties being sold at a profit versus those being sold at a loss.
Across the nation, 91.1 per cent of all properties that resold in the December quarter went for a price above their previous purchase price.
The report shows the Coffs-Clarence region has one of the lowest proportions of loss-making resales across the country - just 3.8 per cent of property sales in our region were sold at a loss.
The result made the Coffs-Clarence region the ninth-best performer across Australia during the quarter.
"With property values continuing to increase over the final quarter of 2017, albeit at a more moderate pace, the proportion of properties resold at a profit has continued to climb,” research analyst Cameron Kusher said.
Nationally, the profits earned from property resales over this period totalled $17.832billion.
By comparison the resale losses amounted to just $442 million in realised losses.
Across the nation, a higher proportion of houses are resold at a profit than units and
"Over recent years, value growth for units has substantially underperformed that of houses, as a result in most regions of the country a higher proportion of houses resold for a profit than units,” Mr Kusher said.
The regions now showing the lowest proportion of resales at a loss are those surrounding Sydney and Melbourne.
At the other end of the spectrum, three regions, all of which are linked to the mining sector, recorded at least half of all resales at a loss over the quarter.