Economists say the strength of the property market has come as a surprise but, fundamentally, demand continues to overwhelm supply.The Reserve Bank will no doubt continue to watch the number of shorter-term property resales closely for further signs of mortgage stress.
"Despite the slight drop off in the median nominal gain, the rate of sellers making a profit has improved over the year and is the highest in Australian dwelling sales since July 2010," she said."This increase in the profitability rate across the Australian housing market helps to shore up financial stability for many property owners at a time when higher mortgage costs are starting to take their toll on household budgets.
"Melbourne of course is the weakest and I suspect there's a degree of distressed selling in Melbourne."Adelaide and Brisbane were tied for the most profitable cities, with a loss-making sales rate of just 1.6 per cent of resales. "This data suggests the sticker shock from higher mortgage rates may have had some influence on decisions to sell more property than otherwise would have transacted after a short hold period," the CoreLogic report noted.
"Similarly, three-year held resales in the year to March have hit a high of 15.8 per cent, but this is not too far from a decade average of 12.7 per cent."The median hold period of resales across Australia was 8.8 years through the March quarter, down from 9.0 years in the December quarter of 2023, and 8.9 years in the March quarter of 2023.With a $593 million hydrogen plant on the way, the number of houses going under the hammer in Whyalla has been steadily outpacing its neighbours.
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