Australians are owning their home for longer
Ten years ago the average amount of time that a home was owned in a capital city was 6.8 years. CoreLogic RP Data have released a report that shows in the past 12 months, this figure has increased to 10.5 years, meaning homeowners are holding on to their property for longer.
CoreLogic RP Data's analysis of properties sold across all capital cities in 2014 shows that houses are currently held for longer than units, on average. Houses are owned for an average of 10.5 years and units for 8.7 years .
Melbourne property is held for the longest period of time for both houses and units, compared to the other capital cities - 11.8 years for houses and 9.7 years for units.
In regional centres, we generally see properties sell on a more regular basis when compared to capital cities. For 2014, the average hold period of a regional house was 10 years. Interestingly, the average amount of time that units are held is longer than those in a capital city - 8.9 years recorded in 2014.
Over a ten year period, Hobart and Canberra recorded the biggest increase in the average hold period for houses - 4.4 and 4.3 years respectively. Hobart also recorded the biggest increase for units, along with Adelaide - 4.2 years and 3.8 years respectively.
Seeing this trend increase on a national level and across all capital cities, it's clear that homeowners are moving less regularly than they have in the past.
Factors that play a role in this trend include the costs involved with buying and selling a home. Fees such as stamp duty could persuade homeowners to hold on to their property for longer. It's speculated that the hold period nationally will continue to increase in the years to come.
With Australians moving less regularly, it's important that our clients understand they don't have to be selling their home - or buying a new property - to reassess their mortgage. They can use a home loan health check at any time to make sure that their loan is the right one and offers the best features for their personal situation.