We all want to know our home purchase is going to pan out long term. Sometimes we can glean how things are going in the market from looking at how long people hold their home before selling and how much they gain (on average) when they do sell.
The median hold period of resales across Australia was 8.8 years in the June quarter. If holding this long, nationally, sellers have seen their home values increase by 56% on average. It pays to hold onto a home for a property market cycle.
While there is a wide range of hold periods, around 16% of those selling in Q2, 2024 had held their property between two and four years. And though those holding 2-3 years have seen the highest increase in interest payments, there is another factor that motivates sellers: the fact that many want to take a profit after a large jump in values.
It’s not only about investors though; home owners also saw an opportunity to sell their property and go to the next stage of their property life cycle, be it upsizing or downsizing.
What is the Average Property Profit in Brisbane and Moreton Bay?
While we might admire those property renovation shows, the properties held for less than 2 years make up just 7% of the market. In fact, the average Brisbane-based seller who made a gain held their property for 9 years, for a profit of $345,000.
As they held through a cycle, nearly all buyers made a profit. Brisbane claimed the top spot as Australia’s most profitable market, with a profit-making rate of 99.1%. Moreton Bay owners also did well, with a 99.8% profit rate overall, and a median profit of $332,500 after 7 years.
CoreLogic states that in Moreton Bay the median house price is now $776,000, having grown 13.5% in two years. Meanwhile, the median sale price of units across the year is $500,000, reflecting a 35% two-year increase.
With the median sale price of Brisbane city homes at $1.2 million (units $595,000), this puts Moreton Bay housing at 35% less than Brisbane – and so a more reachable level for new home buyers.
(Sources: CoreLogic’s Pain & Gain report Q2 2024; CoreLogic www.propertyvalue.com.au and Real Estate Investar.)