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.