iscover
iscover 
CoreLogic’s Pain & Gain report for the September quarter of 2024 has shown the median nominal gain hit a series high of $295,000 since it began in the mid-90s. The report analysed 95,000 resales over the quarter.
As the median nominal gain reached new heights, the median loss from resales held steady on the June quarter of 2024 at $40,000; however, this was still just above the five-year average of $39,000.
Additionally, CoreLogic’s report found that the incidence of loss-making resales had fallen to its lowest level since March 2008 at 5 per cent.
The total nominal gains from resales over the quarter came in at $33.98 billion, up from the $33.3 billion in the previous quarter, while total losses were $270 million, down from $292.4 million on the June quarter.
According to CoreLogic’s head of research, Eliza Owen, the results can be attributed to the 0.8 per cent growth in national home values over the September quarter, along with “reasonably strong housing demand conditions”. Additionally, Owen said that strong prudential lending practices could have also played a part.
“A decline in home values is only a problem for sellers if they have issues servicing home loan repayments, or are in some other circumstance where they need to sell,” she said.
“Otherwise, homeowners can simply hold their properties back from the market until such time there is stronger buyer demand.
“That being said, there are still clearly pockets of pain where home sellers need to offload their property in spite of weak market conditions, or values remaining substantially below previous record highs.”
Furthermore, houses proved to deliver more profitable results during 3Q24, with 2.9 per cent of houses making a loss, compared to 9.4 per cent of units.
The report said that units are three times as likely to make a loss from a resale, which accounted for over a third of resales this quarter (33.5 per cent), however, made up 62.1 per cent of loss-making sales.
Owen said: “For the series of loss-making sales going back to the mid-90s, units have always had a higher chance of making a loss.”
Supply factors, along with units being the preferred investment dwelling with low maintenance, lower price points, and generally higher rental yields were all attributed to this result by Owen.
“Investors are also potentially in a better position to sell at a loss, because they may be able to offset that loss on future capital gains from property,” she said.
[RELATED: Home sales up 8% year on year]
ISCOVER 
