The proportion of property sellers who suffered a loss increased slightly in the March 2020 quarter, according to CoreLogic's latest Pain and Gain report. Is 2020 not the right year for property owners to sell?
The report showed that the losses for the March 2020 quarter reached $ 908.6 million, compared to $ 766 million in the previous quarter. Of all the states, only Sydney and Hobart reported a decline in the share of loss-making sales.
In contrast, the share of for-profit sales for the first three months of the year fell to 87.7%, down 100 basis points from the previous quarter. Gross profit on homes sold in the quarter fell 12% from $ 22.5 billion to $ 19.8 billion.
On an annual basis, the value of profitable sales increased dramatically from $ 14.3 billion over the same period last year. It was at the time when the market was in recession.
"Despite the potential fallout from COVID-19 at the end of the quarter, only a small portion of the deficit sales reflects the start of the pandemic," said Eliza Owen, responsible for residential research. at CoreLogic.
Owen said the share of loss-making sales has remained relatively stable with the onset of strict social distancing in late March.
Although Owen expects the housing market to report an increase in the share of loss sales in the second half of 2020, she believes that the volume of activity in selling could be more moderate since sellers are not likely to test the market.
"Aid to mortgage holders whose jobs and incomes have been affected by the pandemic has probably also helped keep loss-making sales low," said Owen.
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