Property losses up nationally, local buyers seize chance
NEW national figures have revealed the number of owners selling for less than they paid is on the increase.
The latest CoreLogic Pain and Gain Report revealed 10.2 per cent of properties resold during the first quarter of the year was at a loss.
Nationally property profits were worth $14.819 billion during the quarter while losses were at $428.1 million.
While 89.8 per cent of sales were still for more than owners originally paid, CoreLogic analyst Cameron Kusher said the latest data was a reflection of the slow down in national price growth in the market.
The level of loss making sales was the highest it had been since October 2013.
While a higher number of property sales in capital cities were at a profit compared with regional areas, Mr Kusher said price growth was doing better in regional areas.
Deardrie Keleher principal of PRD nationwide Tannum Sands said unfortunately in Gladstone a very high proportion of properties were still selling at a loss.
"It's 100 per cent given at the moment, if people purchased around 2012-2011, they are selling at a loss," she said.
"Anybody who purchased before that may still be coming out even or making some money."
Ms Keleher said high rents during the recent boom, motivated many people to buy instead of forking out for inflated rents.
"But in the last three years, we've had a dramatic price drop in this area," she said.
"Having said that we have had a very good last year.
"With prices the way they are, at the bottom, it has encouraged a lot of people to start to get back into the market again.
"We've seen quite a lot of first home buyers."
Ms Keleher said an encouraging sign was the number of people moving back into the area to take advantage of the cheap rent.
"As a result rental prices are now on the increase and the market is now improving," she said.
"When rents start going up again, people start buying again."
Mr Kusher said overall regional markets were improving in terms of the level of loss making sales.
"Generally speaking the regional market is pretty steady, some of the regional areas are still very weak," he said.
He said coastal regional markets were generally doing reasonably well.
"It seems like those areas reasonably close to the capital cities are doing pretty well really but the mining areas are still really struggling."
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