96% of
property resales from September to December 2019 achieved
above original purchase
price
The latest CoreLogic Pain
& Gain Report released today (www.corelogic.co.nz/paingainreport) takes a
deep dive into the profits and losses across property
resales for the December 2019 quarter. Conducted by
Economist Kelvin Davidson, the Pain & Gain results
delivers a proxy for the performance of the housing market
by highlighting the magnitude of profit or loss a typical
seller of a home makes across the country.
In the key
findings from this report (resales - 1 October 2019 to 31
December 2019), Kelvin Davidson found that:
A
renewed strength in property values across the country at
the end of last year has helped to keep the ‘gain’
figures strong. About 96% of property resales in the fourth
quarter of 2019 were made above the original purchase price
– an improvement from 95% in Q3.
Auckland and
Christchurch both contributed to the overall improvement.
Auckland’s share of profit-making resales rose to about
93% in Q4, up from 91% three months earlier. Christchurch
improved from 89% to 90%. Meanwhile, Dunedin and Wellington
remain buoyant, with profits seen on 99% of resales in
Q4.
Not only is it common for property resellers to
get a price above what they originally paid, the scale of
those profits is significant.
Nationally, the median
gain at resale in Q4 was $213,000 – up from $202,000 three
months earlier. That swamped the median resale loss, which
was just $25,000 in
Q4.
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