Profit taking from houses dropping

Although their share of resales dropped in the September quarter to 97.1% from 97.6% in the June quarter, the median sale was at a gross profit of $$337,750, compared to $324,000 for owner-occupiers, CoreLogic’s latest Pain & Gain report shows.

Across the country the number of all property types selling for a profit has fallen to its lowest level since the end of 2020, while the median profit has dropped $109,000 for houses and $158,000 for apartments.

In the three months to September 96.8% of property resales made a gross profit, down from the peak of 99.3% at the end of last year and the lowest level since the fourth quarter of 2020 when they were at 96.3%.

While the drop may be significant, CoreLogic data show through 2000 and 2001, it was common for the profit share to be as low as 75%, and in the post-GFC period, that figure was often as low as 80%. The latest figures are still well above those marks.