Australians are choosing to own their homes for longer according to RP Data with the average time frame between house sales increasing from 6.8 years to 8.6 years over the last decade
And it’s likely that our slower market conditions will push these figures out further.
Melbourne and Sydney home owners tend to remain in their homes the longest, according to RP Data research analyst Cameron Kusher.
“This is likely due to higher purchase prices of homes which then results in higher transaction costs,” Kusher says.
Monash in southeast Melbourne has the longest average hold period among the sellers of last year, at 12.6 years.
The longer period of time between sales was also a growing phenomenon with units. Ten years ago, the average Australian unit was selling after an average of 6.1 years, and now it is 7.5 years.
Not surprisingly mining regions, which are more investor and speculator driven, feature heavily in the list of regions with the shortest average hold period.
I have always recommended buying investment properties in major capital cities with a large base of and wide demographic of owner occupiers, as it is really owner occupiers who buy 70% of the properties on the market and underpin property values. They also create stability in property values, staying put rather than selling up when the market turns or economic times get tough.
RP Data calculates the average hold period as the average time frame between actual residential property sales, therefore excluding those who continue to hold.
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