Analysts and agents say that the proportion of homes for sale that were purchased less than two years ago is at the highest level since at least 2014. This is likely due to rising financial stress brought on by the spate of interest rate increases, resulting in mortgagees battling with rising repayments.

The figures from real estate data firm CoreLogic show that the percentage of properties sold after being owned for one to two years is at a nine-year high.

Since a pandemic low in mid-2021 (at around 8.3 per cent), there has been a steep increase in properties re-sold within the past two years. In Hobart, the percentage is almost 16 per cent, and in Brisbane, it is 15.2 per cent, closely followed by the ACT with 13.9 per cent. It’s a tough reality, especially around Brisbane, where almost one in ten homes are sold within two years of the last sale.

Research from CoreLogic indicates that a quick turnover of properties generally spikes during booms as investors flip homes for a fast profit. Head of Australian Research Eliza Owen has analysed the numbers on homes reselling within a few years of the previous purchase and says, “Historically, it is unusual for properties to be selling if they've only been held for a short period of time when capital growth conditions are weak."

She recalls, “The last time we saw a strong instance of short-term resales was when you had really low interest rates, consistent capital growth and basically a booming property market."

"In many instances, what was happening was that investors would purchase a property, hold it until the interest-only term was up and then resell it, in most instances for a profit."

This is not the case for many first-time buyers who have extended themselves as far as possible to buy a house when interest rates were low. Whether their situation becomes a ‘fire sale’ depends on what happens with further interest rate rises. 

Local Kiama real estate agent Sam Lathbury from First National Coast & Country recommends, “Seek advice early about your options so you can remain in control of the sale process. 

“The price you will be able to fetch at market depends on where you are located and how much competition there is at the time you want to sell.” 

He advises, “You need to plan for this to give yourself as much time and as many options as possible to get the right sale price.”

Mr. Lathbury warns that an increasing number of people will face financial difficulties due to substantial repayment increases as they transition from low fixed rate loans to variable rates.

The issue for those needing to sell is that “You can only sell to those who are looking at the moment.”  

And these potential buyers may also have less to spend.

“There is a disparity between income and repayment ability - the borrowing capacity of most buyers has reduced by around 20 per cent and wages have not gone up in line with inflation,” he points out.

There has been an overall 15 per cent drop in house prices in the local area, but in Kiama, it’s only been around ten per cent. 

“Kiama is definitely in a bubble and not as affected by some of the financial pressures elsewhere but there is definitely a knock-on effect from market struggles,” Lathbury adds. “This is due to the popularity of the area and the fact that there is less stock on the market, so prices are maintaining compared to other areas”. 

This is also affecting those buyers who have sold and then looking to buy here, and he adds “There is a lack of properties for sale, and this is an area where people want to buy, so demand is strong which has meant that our price correction hasn’t been as severe as some other areas.”