Many homeowners made a profit on reselling their homes in the first quarter of 2021. Very few vendors tool losses during the first quarter and the majority have enjoyed the rapid increase in house prices resulted in profitability.
According to CoreLogic,” the number of loss-making sales fell 16.5% in the March quarter to 9500, with fewer than one in 10 homes selling below the previous purchase price”.
And the rest of 9 out of 10 homes made a huge profit holding 89.1% than the previous quarter. I would say in one word ‘WOW’.
The acceleration in housing value through the first quarter of 2021 increased profitability.
Regional cities continue to outpace the capital cities with 90.6 % of a home selling for a profit, compared to 90% of capital city resales.
The way it is going, it will reflect the higher achievable prices in coming months as well. Nationwide, price growth in the home value rose by 1.9% in June, making an annual growth by 13.5% for the financial year.
According to ABS housing finance data,” the upswing in the purchase price and profitability has been driven by growth in borrowing for the purchase of property increased by 30.5% in the past 12 months, compared to the previous 12-month period”.
Looking at this more inquiry may be placed on loaning situations because of the sharp rise in borrowings and house prices.
According to the CoreLogic home value index shows that the change of dwelling prices in Adelaide is 13.80% which is great news with a 5.63% increase over the quarter.
According to Ms. Owen, Head of Research,” a broad-based housing market upswing continues to support improved profitability in housing market resale. However, with the dwelling market at extraordinary record high values, there are potential headwinds for buyers to be cautious of.