National house sales cream $3.8b profit in three months
5 Jul, 2017 7:00am
House sales have made a mint in the first quarter of 2017, with $3.8 billion in profits.
But it's not all good news, with $24 million in losses recorded by those who made a bad bet on the property market.
The figures come from the latest CoreLogic Pain and Gain report, released today.
Unsurprisingly, the biggest chunk of profits were made in Auckland, with a $1.6 billion slice of the profits.
CoreLogic noted that 3.7 per cent of houses were resold at a loss in the March 2017 quarter, and that losses had been going down since 2011.
"That is unsurprising when you consider the growth in values that the NZ property market has gone through over that period - as prices increase it becomes less likely that a property will sell at a loss," the report said.
But of those who made a loss, investors were more likely to be caught out than someone who lived in the home.
CoreLogic warned that could be a problem if the housing market turned.
"Investors remain a key group of interest for the Reserve Bank of NZ as their loans are viewed as being riskier in downturns," the report said.
Of those houses selling at a loss, on average landlords were left $20,000 out of pocket.
Sourced from the NZHerald: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11885935