Majority of homes resold at a profit

Ninety per cent of properties resold over the March 2015 quarter had a profitable outcome, according to a CoreLogic RP Data quarterly report of homes resold over the three months.

The total profit made from resold homes was $13.8 billion with the average gross profit recorded at $230,633 with over 30.7% of homes resold at more than double their previous purchase price.

Homes that resold at a gross loss tallied at 9.1%, slightly higher than the 8.6% at the end of 2014.

“Although the proportion of loss-making resales rose, this figure has been fairly steady over the past 12 months with the total value of the loss-making resales over the quarter recorded at $417 million, with an average loss of $69,468,” said CoreLogic RP Data research analyst Cameron Kusher.

The report highlighted the link between length of ownership of a property and its resale value with those resold at a lost averaging 6 years compared to ownership of average 16.8 years for those that more than doubled their previous purchase price.

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