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Core Logic RP DATA- Pain & Gain report

By Lianna Georges

*** Sourced from Core Logic RP DATA

The Pain and Gain Report is a quarterly analysis of homes which were resold over the quarter. It
compares the most recent sale price to the previous sale price in order to determine whether the property
sold at a gross profit or gross loss. It provides a proxy for the performance of each housing market and
highlights the magnitude of profit or loss the typical seller of a home makes across those regions
Over the March 2015 quarter, 9.1% of all homes resold recorded a gross loss when compared to their
previous purchase price. This figure was slightly higher than the 8.6% recorded at the end of 2014 but
lower than the 9.6% over the same quarter last year. Although the proportion of loss-making resales
rose, the figure has been fairly steady over the past 12 months. The total value of the loss-making
resales over the quarter was $417 million with an average loss of $69,468.
While 9.1% of resales were transacted at a loss, the vast majority (90.9%) of properties resold over the
quarter did so at a profit. In fact, 30.7% of homes resold for more than double their previous purchase
price. Across those homes which sold at a profit, the total value of this profit was recorded at $13.8 billion
with the average gross profit recorded at $230,633.
The data also highlights the fact that ownership of property, whether for investment or owner occupier
purposes should be seen as a long-term investment. Across the country, those homes that resold at a
loss had an average length of ownership of 6.0 years. Across all sales recording a gross profit the
average length of ownership was recorded at 10.0 years, while homes which sold for more than double
their previous purchase price were owned for an average of 16.8 years.
The capital city housing markets continue to record a lower proportion of loss-making resales than
regional areas of the country. The trends in regional areas are shifting with the proportion of loss-making
resales falling in areas linked to tourism and lifestyle. On the other hand, housing markets linked to the
resources sector are generally seeing an increase in loss-making resales as housing market conditions
continue to deteriorate.–pain-and-gain-report-released-june2015.pdf

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