The latest report from CoreLogic shows that Nationwide, short-term loss making property sales are rising, suggesting that more owners are questioning future gains.
The report revealed that the median hold period for properties selling at a loss was 6.7 years, down from 8 years in the previous quarter.
CoreLogic Head of Research Nick Goodall said more people were selling over a shorter period and taking a loss was the result of the general market slowdown, and uncertainty about the future.
“The recent slowdown in value growth is an obvious factor. There’s also the potential for future costs to increase, including higher interest rates, or policies affecting investors.
“We know from consumer confidence surveys that house price expectations have weakened. This new data shows a higher number of people who bought in the past year are more cautious and choosing to sell earlier,” Goodall said.
Nationally, there was over $26 million in realised losses over the quarter, or almost $20,000 per sale. Investors were hit harder than owner occupiers, losing around $44,500 per sale.
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