The quarterly 'Pain & Gain' report from CoreLogic RP Data has been released today, showing that homes purchased after 2008 and sold in the December quarter of 2014 were much more likely to incur a gross loss than homes purchased before the GFC hit. December quarter figures reveal that homes incurring a gross loss when sold had been owned for an average of 5.9 years, while properties that recorded a gross profit were held for an average of 10.2 years. Homes that resold for more than double the previous purchase price were owned for an average of 16.8 years.

For properties purchased prior to January 1st, 2008 and subsequently sold during the December quarter of 2014, only 4.9 per cent of resales were made at a gross loss. For homes purchased on or after January 1, 2008, that resold over the December 2014 quarter, 14.1 per cent recorded a gross loss relative to the previous purchase price.

Analyst and author Cameron Kusher noted that making a gross profit or loss on property differs significantly from property-to-property and area-to-area. Kushner said the proportion of loss-making resales has fallen to 8.6% over the December 2014 quarter from 9.1% the previous quarter and 9.6% a year earlier. Sydney, Perth and Melbourne have seen the lowest proportion of loss-making resales. Sydney and Melbourne in particular are reflective of the fact that these two cities are currently seeing the strongest growth in home values.