Property data company CoreLogic's latest Pain and Gain Report has a little more pain and a little less gain, as more residential properties are selling at a loss.
The report tracks the percentage of residential property sales that fetched more or less than their previous purchase price.
In the first quarter of this year 7.1% of nationwide sales were made at a loss, up from 6.5% in the fourth quarter (Q4) last year. That, of course, means the percentage selling for more than their purchase price was 92.9%, down from 93.5% in Q4 2023.
The number of properties selling for a gain peaked at 99.3% in Q4 2021.
Whether a property sells for a capital gain or a capital loss has a lot to do with when it was purchased.
The median length of time that the properties which sold for a profit had been owned for was 8.8 years in Q1 2024, while those that sold for a loss had been owned for a median 2.4 years.
Location is also a factor, with 10.5% of Auckland sales selling a loss in Q1, followed by Hamilton 9.4%, Wellington 7.3%, Tauranga 6.0%, Dunedin 5.9% and Christchurch 4.4%.
The biggest median loss of -$80,000 was in Wellington, followed by Auckland -$69,000, Tauranga -$50,000, Hamilton -$45,500, Dunedin -$45,000 and Christchurch -$24,500.
Selling costs such as agent's fees and legal expenses would add to that pain.
CoreLogic chief property economist Kelvin Davidson said the softening in resale performance was consistent with wider market patterns.
"We've seen flattening property values since the end of 2023, as a result of stretched affordability and low gross yields, high mortgage rates and the rise of available listings on the market," he said.
"These factors are all working together to swing the market back around for buyers," he said.
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