Long-time homeowners across Sydney are still reaping major windfalls from their home sales, despite recent falls in prices.
An analysis of sales records has revealed the average Sydney homeowner selling a property bought 10 years ago made about $475,000 in resale profit.
The average apartment seller who owned their home for the same period pocketed about $373,000 in median resale profit, according to the CoreLogic data.
The big profits were amassed in an otherwise subdued market.
Sydney’s median property price dropped nearly 11 per cent over the past year and the number of buyers reporting they’re actively looking for property fell about 25 per cent.
Realestate.com.au chief economist Nerida Conisbee said the profits showed the recent downturn had a minimal impact on sellers.
“Recent falls in prices are not that significant when you compare them to long-term trends,” Ms Conisbee said.
“Most homeowners benefited from an incredible run-up in prices over many years. They’re not affected by the weaker market in the same way as those who bought when prices were at their peak, and they’re not the majority of sellers.”
Ms Conisbee added that sellers of homes in areas where there was rapid gentrification and population growth were in a particularly strong position.
“Those who own homes in the inner west would have done very well,” she said. “A lot of young people have moved in over the years and renovated the homes, making the region more attractive to other buyers and that’s pushed up the prices.”
Sales data confirmed that detached house sellers in the Strathfield council area were getting the biggest resale profits in Sydney.
The average seller resold their house for about $1.18 million above the price they paid 10 years ago.
The growth equated to an 8.7 per cent jump in prices every year — a faster rate of average annual price increase than anywhere in Sydney.
The median price of a house in the area was under $1 million at the end of 2008 and is now $2.1 million.
The boost in prices followed a 15 per cent jump in the size of the local population between 2011 and 2016, when the last two censuses were taken.
Devine Real Estate principal Steven Devine said Strathfield also benefited from being at the “geographic centre” of Sydney.
“It’s a better bet for people like medical professionals than somewhere like the eastern suburbs because it’s easier to get around the whole city,” he said.
Mr Devine added that sellers who focused only on the past 18 months of price movements needed to consider the bigger picture.
“It’s true that you will have to accept a price that’s lower than you could have got a year ago. But when you consider the price you could have got three years ago, you’re still significantly up,” he said.
Sellers in nearby Burwood, along with Ryde and Parramatta have also been scoring big wins.
Burwood house prices remain up $850,000 on what they were 10 years ago, while in the Ryde council area the median price difference is $909,000. House prices in the Parramatta LGA have swelled by $660,000 over the decade to hit a median of $1.19 million.
They first moved there 44 years ago knowing little about the suburb — but Rod and Lyn Rimes say they lucked out by buying in Strathfield all those years ago.
The couple have watched their suburb transform into one of Sydney’s most popular areas and became heavily invested in its success along the way — Mr Rimes was a local councillor for many years and served as Strathfield mayor in 1985.
“It’s a wonderful area,” Mr Rimes said. “When we first moved here there was little open at (Strathfield) square but that’s all changed.
“It’s become very convenient. You’re in the city now in 20 minutes.”
The couple are taking their much loved home at 54 Redmyre Rd to auction with Joe Campisi of Devine Real Estate on April 6 after deciding to downsize to something smaller.
“The house is still very much like it was in 1905 when it was built,” Mr Rimes said. “It’s got these lovely big rooms and high ceilings.”