vendors enjoying larger profits

Vendors enjoying larger profits

Author: Ben Reid - Manager VAA

The latest edition of Corelogic’s ‘Pain and Gain Report’ was released last week, and it provides some interesting insights into what has been happening across the Australian property market, despite the impact of higher interest rates and cost-of-living concerns.

For those who may not have come across this report before, every three months the analysts at Corelogic take a look at sales data across the country to compare each property sale with the figure it was purchased for the last time it was sold. This provides a quarterly measure of how many property sellers are achieving a nominal ‘profit’, as opposed to those who are selling at a loss.

The report for the last three months of 2023 analysed around 90,000 property sales. It found that during that period:

  • Roughly 94 percent of homes sold for more than they were purchased for;
  • This included 97 percent of house sales selling at a profit;
  • The median holding time for profitable sales was close to 9 years;
  • For those sold at a profit, the median gain for sellers was around $310,000; whilst
  • Those selling at a loss recorded a median drop of $40,000.

The good news for those considering selling in 2024 is that the percentage of vendors achieving a profit had increased since the previous quarter, with the number of loss-making sales decreasing by over 5 percent.

Figures like these will be good news for Victorian homeowners who may be considering selling in 2024. However, it is important to keep in mind that the key ingredients to any sale that maximises your result is experienced, objective advice and a clear plan.

So if you would like an obligation-free chat about your options and how you can make the most of the current market conditions, don’t hesitate to give our team at Ian Reid Buyer and Vendor Advocates a call this week on 9430 0000.

You’ll also find lots of helpful tips for vendors in our free booklet, ”FATAL REAL ESTATE TRAPS EXPOSED”, so be sure to download a copy while you’re here.

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