Home owners wait to sell in the hope of getting a better deal

Home owners are waiting longer before selling their properties in the hope of getting a better deal, as house prices begin to bounce back as the property market shows signs of rising.   

Figures released by consultancy RP Data show that home owners are holding their biggest investment for at least 25 per cent longer than they were a 10 years ago, with the average length of ownership for houses, based on data on properties sold over the past year, was 9.3 years, and 8.2 years for units.  

Ten years ago the average holding period for a house was 6.8 years, and for a unit 5.9 years.   Property-Real Estate prices across Australia’s capital cities rose 0.3 per cent in February, the second consecutive monthly increase following a 1.2 per cent rise in January.   

RP Data said the average holding period for houses and units remained relatively static until late 2005 and increased after this time.  The company’s analyst Cameron Kusher said the increase in holding periods was logical when measured against a decline in sales.   

There is no incentive for home owners to move more frequently, but there are benefits for property investors as there are far greater benefits to replace older properties for brand-new properties which attract greater taxation deductions and also do not have maintenance costs.    

Regional and coastal areas have dominated the list for both houses and units with the longest average holding period.  The mining Australia wide recorded a holding period for houses of just 4.4 years, while Weipa in Far North Queensland recorded the shortest holding period for units, at 3.4 years.    

High home values in capital cities have also contributed to the lack of movement, with the median price of a home in Sydney was $540,000, while in Melbourne it was $482,000, with Perth and Brisbane were $465,000 and $420,000 respectively.