Photo: RNZ / Marika Khabazi
Homeowners getting a return on their investment is up for the first time in two years, as the market continues to recover.
CoreLogic's fourth quarter (Q4) Pain & Gain report indicates profitable resales rose for the first time since the three months ended 2021, with 93 percent of homeowners making a gross profit.
The national median gain on profitable resales rose by $8000 to $305,000, from the third quarter.
The median resale loss was also significantly smaller - $45,000 in Q4, compared with $50,000 in Q3.
CoreLogic chief property economist Kelvin Davidson said more than nine in 10 properties were selling for a profit.
"Although it must be noted this is still quite low compared to the longer-term average and reflective of the fact that national values are still about 11 percent below their peak."
He said the latest figures signaled that the trough for this measure of housing performance had "probably" passed.
"However, the higher portion of profitable resales we're starting to see is consistent with the rise in property values themselves since September's trough, alongside wider market forces such as the peak for mortgage rates, high net migration, a resilient labour market and easing credit conditions."
The hold period to achieve a gross profit rose to 8.5 years, from 7 years in 2020 and 2021.
Davidson said the hold period played a vital role in these figures, with long ownership lengths almost inevitably resulting in a gross profit.
"It's also important to note that for owner-occupiers, these aren't necessarily cash windfalls, with the new equity often just recycled into the next purchase."
Regional resales mixed
Auckland saw 90 percent of resales make a gross profit, up from 88.5 percent in Q3.
Wellington also saw a rise in profitable resales to 94 percent from 91.4 percent in Q3, while Christchurch also profitable resales rose slightly to 96.5 percent, from 96 percent.
However, Hamilton, Tauranga and Dunedin all saw their share of profitable resales decline a touch.