Already a subscriber?Residential vendors reaped $310,000 gross profits on average during the December quarter, 6.9 per cent higher than the previous three months and bolstered by a sustained increase in home values, which hit a record high during that period, CoreLogic’sFewer homes were sold for a loss, as the share of profitable sales rose by 0.4 of a percentage point to 94 per cent, highlighting the housing market’s resilience despite higher interest rates and the soaring cost of living.
“It tends to be the case that rising values create this increased incidence of profitability, so further price increases this year means more sellers would be making a profit.” “When people start feeling the strain on their cash flow as we’re seeing now, they may decide to offload their property and take a lower profit or even a loss.”
Profits from residential resales rose by 4.2 per cent to $29.9 billion, underscoring the improving profitability in the housing market since the recovery trend began in early 2023.Every house sold across 27 local government areas in the capital cities was profitable, while all units in 31 districts delivered a profit to vendors.