Some Australian homeowners tend to re-list their properties into the market within two years of their purchase, a new study from Suburbtrends found.
Depending on the state/territory, up to 9% of homeowners are relisting their properties for sale within two years of purchase, according to the study.
Here are the top 10 reasons why homeowners sell their homes:
- Job relocation – Job changes and career opportunities may require homeowners to relocate.
- Financial stress – Homeowners might be unable to keep up with mortgage repayments.
- Lifestyle changes – Any significant life events like marriage, divorce, or birth of a child could compel homeowners to seek a different home.
- Real estate investment – Some owners purchase their homes with the intention of renovating and reselling for profit.
- Market appreciation – Homeowners wish to capitalise on the likely increase in their properties’ value.
- Neighbourhood dissatisfaction – Issues with the community may encourage homeowners to look for a new home in a short period of time.
- Property defects – Discovery of significant structural or maintenance issues after purchasing might leave homeowners opting to sell rather than invest in repairs.
- Changes in interest rates – Any increase in interest rates could make it harder for homeowners to afford their mortgage.
- Inheritance – If the property is inherited, the new owners may choose to sell it if they have no desire to occupy and manage the property.
- Overestimation of affordability – Homeowners might have overestimated their ability to afford buying a home, leading to a financial strain.
Which states have the highest re-listing rates?
Close to a tenth of homeowners in Queensland decided to put their property back to the market after two years of buying it. The state has the highest rate of property re-listing.
Suburbtrends founder Kent Lardner said the high tendency of relisting in Queensland could be due to the state’s dynamic job market and its investment opportunities.
“Queensland's rapid development and economic growth have created a climate where job relocation and investment in real estate are more prevalent,” he said.
Re-listing rates vary across states: Tasmania at 8%, South Australia at 7%, New South Wales and Western Australia at 6%, Northern Territory at 5%, Victoria at 4%, and the ACT at 3%.
Mr Lardner said ACT’s low relisting rate could be due to the stability of its employment market, given that it is home to a large public service sector.
“It could also be due to the generally high level of satisfaction with the region's infrastructure and amenities,” he said.
“The ACT's unique environment fosters stability, making it less likely for homeowners to re-list their properties within a short period."
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
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