Couple hugs in the background in soft focus and a Sold sign is in focus in the foreground in front of a house Couple hugs in the background in soft focus and a Sold sign is in focus in the foreground in front of a house

NZ records highest average resale profit in 20 years

 

In the last three months of 2018, our property market was working out hard, and NZ homeowners were looking good! Most properties — 96.3% — resold for an average profit of $195,000: up $10,000 on the previous quarter. CoreLogic’s quarterly Pain & Gain series has been comparing latest sale with previous sale prices for twenty years, and average profit has never been this high. Median national loss, on the other hand, was $25,000. These measures point to a market in reasonably good shape.

CoreLogic’s Nick Goodall says high profits resulted from people holding properties longer — 7.6 years’ average — and, extended price rises. Wellington has came out on top, while Auckland managed to move above a 5% average loss for the first time since mid-2013. Broadly, the lower North Island held strong, while West Coast and Canterbury softened. CoreLogic’s data also showed 96.6% of houses resold for a profit, versus 89.8% of apartments. Loss making properties were owned for an average 2.8 years — the shortest duration since 2010!

If your clients are hoping to benefit from this upswing, I’ll help them secure finance. Or, I can look at their existing loans to see if there’s a more competitive deal. Let me know.

Source: https://www.corelogic.co.nz/news/homeowners-pocket-median-resale-profit#.XIitfigzaUk

 


Published: 25/3/2019

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