Owners holding homes for longer

Owners holding homes for longer

Posted on Friday, March 27 2015 at 11:58 AM

CoreLogic RP Data research analyst Cameron Kusher has released research that shows homes are being owned for longer across Australia, with the average number of years a capital city house is owned climbing from 6.8 years a decade ago to 10.5 years over the past 12 months.

the capital cities over the past decade, Hobart (4.4 years) and Canberra (4.3
years) recorded the greatest increase in average hold period for houses.

(4.2 years) and Adelaide (3.8 years) have recorded the biggest increases for
units. Melbourne and Perth (both 3.3 years) recorded the smallest increase in
average hold period for houses over the decade while Sydney and Melbourne (both
2.4 years) recorded the smallest increases for units.

the council areas, the region to record the shortest hold period was the Darwin
region of Palmerston with a hold period of 5.7 years, while the regional southeast
Queensland area of Somerset has the shortest average hold period for units at
4.6 years.

to Kusher, many of the regional areas listed are smaller regional townships linked
to the mining and resources sector. Interestingly, he notes that there are very
few New South Wales, Victorian or Tasmanian council areas on either lists of
shortest average hold period.

South Wales and Victoria emerge as the areas that typically have the longest
average hold period. Auburn in Sydney has the longest average hold period for
houses at 15.7 years and Greater Shepparton in north-western Victoria has the
longest average hold period for units at 12.6 years.

sold in 2014 across the combined capital cities showed that houses had been
owned for an average of 10.5 years and units for 8.7 years. A year earlier the
average hold period of those homes sold was 10.1 years for houses and 8.4 years
for units.

the regional markets, Kusher found that homes tended to sell on a more regular
basis than their capital city counterparts.

to Kusher, over recent years there’s been an ongoing trend towards homes being
held for longer. Since the middle of 2005, the average hold period has
continued to trend higher, which has occurred alongside a reduction in

the hold period continuing to trend higher at a national level across all
capital cities, it’s evident that home owners are moving less regularly than
they have in the past.

is further highlighted by the fact that the number of houses and units selling
at a national level is much lower than the peak in 2003-04, despite the fact
that the overall national population is much greater now.

home entry and exit costs no doubt play a large role in homes being more tightly
held,” he continues. “Charges levied on the sale price such as stamp duty and
agent commissions no doubt act as a disincentive for home owners to move on a
more regular basis or alternatively move to more appropriate accommodation as
their needs evolve over time.

“We see no evidence to suggest that over the
coming year the average hold period of properties selling won’t increase
further,” Kusher concludes.

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