From RP Data:
RP Data has today released our latest Pain & Gain Report for the December 2013 quarter. The report found that of those residential properties re-sold throughout the final quarter of 2013, 9.7% were sold for less than their previous purchase price compared to 31.8% of re-sold homes transacting for more than double their previous purchase price.
The proportion of loss making sales was down from 12.6% at the same time in 2012 and was at its lowest level since the three months to July 2011.
Across the combined capital cities the proportion of loss making re-sales was even lower. Over the quarter, just 6.5% of homes sold at a loss compared to 9.8% at the same time in 2012. The proportion of loss making re-sales was at its lowest level since the three months to May 2011.
More importantly for the local Byron market (using Richmond-Tweed as a proxy):
A key feature of the Pain and Gain analysis over recent years has been the consistently high proportion of loss making re-sales across some of the most high profile coastal markets. Conversely, key regions linked to the resources sector have consistently recorded a relatively low proportion of loss making sales. More recently conditions have started to change.
Coastal market improved
High profile coastal markets such as Richmond-Tweed in New South Wales, as well as Far North, Gold Coast and Sunshine Coast in Queensland and the South West region of Western Australia have generally seen a high proportion of loss making re-sales over recent years. As the above chart highlights, the proportion of loss-making re-sales is now trending lower across each region. At the end of the December 2013 quarter, 23.8% of re-sales in Richmond-Tweed were at a loss down from a peak of 29.1% over the three months to October 2012.
Interested in selling your home and taking advantage of the improving market? Simply drop your details below for a free appraisal.