A new report showed that most people who sold their homes during the first quarter of 2016 have gained a profit, which averages around $240,000.
According to the Pain and Gain report by market analysis firm CoreLogic, as much as 91 per cent of all the homes sold during the March 2016 quarter were sold at a profit, raking in a collective gross profit of $12.9 billion. However, one in 11 homes were sold at losses totaling $362 million and averaging $66,073 per sale.
The pattern of gains and losses differed widely across the nation. On the positive end, only fewer than one in 50 units and slightly more than one in 50 houses sold at a loss in metropolitan Sydney. On the other hand, regional Western Australia saw more than one in four houses and two in five units sell at a loss, largely due to the mining investment boom's demise. Similarly, more than three in five unit sales ended in the red for Queensland's Mackay and Townsville areas.
"The trends in regional areas are shifting with the proportion of loss-making resales trending lower in areas linked to tourism and lifestyle," said CoreLogic research analyst Cameron Kusher. "On the other hand, housing markets linked to the resources sector are generally seeing an elevated level of loss-making resales after housing market conditions in many of these locations have posted a sharp correction."
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