The share of short-held listings selling at a loss has ballooned in the inner-city areas, reflecting their weaker performance in the past three years.
The proportion of new residential listings held for less than three years has more than doubled in many outer ring suburbs across Sydney and Melbourne over the past three months compared to the long-term average.
Nearly half of all short-held listings in inner Melbourne are selling for a loss according to CoreLogic. “I think it will start to slow from here. We’re just past the peak of fixed rate transitions, and it seems most households have managed mortgage payment increases fairly well. So if we’re not at the peak of short-term resales we’re very near it,” she said., as they are expected to in the near term, the more short-term resales are de-risked in terms of servicing outstanding debt.”
“I’m pretty confident that rising interest rates [are] a factor in people’s decision to sell within a short period of owning their homes,” Ms Owen said. “Periods of strong capital gain can be associated with short-term reselling because the seller can realise a strong profit which can offset high transactional costs or might be put towards buying a higher quality property,” she said.During the pandemic boom, house prices on the Central Coast surged by 45.8 per cent, Blacktown was up 27 per cent, the outer south-west by 31.3 per cent and Mornington Peninsula by 33.4 per cent.
Meanwhile, in the inner south-west, inner west and inner south, short-held listings accounted for up to 13 per cent of all new listings, but a third of those were listed below their previous purchase price.
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