Fewer homes selling at a loss
The latest housing data shows a positive trend for Australian homes – fewer properties are selling at a loss.
It is an interesting upward trend especially after a dubious quarter (July 2012-Sep 2012) where 13.5% of homes sold at a loss while only 30.9 % of homes sold at prices two times more than the purchase price. Over the last quarter, the number of homes selling at a loss has come down to 12.5% while those sold at more than double the purchase price has appreciated to 32.1%. The trend is visible across all of Australia.
Properties on or near coastal areas have suffered the most while those close to resource and mining sectors have seen minimal losses. It is also worth noting that the financial crisis is not the only reason why homes are being sold at a loss. Many people are doing so because it allows them to buy another property (where appreciation can be very high in the near future) at a throwaway price.
Read the full article here.
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