This home on Heber St, Hurstville sold in August for $74,000 less than the price the owners paid in 2014.
SHATTERED families have been selling their homes for up to $134,000 less than they paid for them in the Sydney regions worst affected by the ongoing housing downturn.
The losses were mostly from those selling upper market houses purchased within the last one-two years and in areas heavily supplied with new housing.
These homeowners struggled to find buyers who could afford to pay the excessive prices they once paid as banks put a stranglehold on lending.
They also faced stiff competition from other sellers in their area due to the high supply of housing, forcing them to offer big discounts to get buyers interested.
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Data from research group CoreLogic showed prices for properties at the top end of the market fell an average 8.6 per cent over the past year — nearly twice the 4.6 per cent price fall for homes at the bottom end.
This home on Thorn St in Ryde sold for $1.228 million in August, but it had previously sold for $1.25 million three months earlier.
Real estate analyst Andrew Wilson of My Housing Market said the homeowners most vulnerable to the falls were recent buyers who were forced to sell by divorce, recent unemployment or other financial hardships.
“They will have to accept whatever price they can get,” he said.
Homeowners in the construction hot spot of Canterbury were most likely to make losses on their sales, additional data showed.
A unit inside this building on Canterbury Rd, Canterbury sold in August for $73,000 less than the 2017 purchase price.
Nearly 9 per cent of sellers in the Canterbury council area resold their homes for less than they paid during the three months of winter, with the median loss $134,000.
Most of the unlucky sellers had purchased their homes about two and a half years ago.
Recent sales included a unit at 314 Canterbury Rd which sold in August for $650,000 — $73,000 below the $723,000 paid in February 2017.
In the nearby Auburn area, 8.6 per cent of sellers resold their homes at prices below what they paid, while in the Bankstown, Ashfield, Ryde and Hurstville council areas it was 6-7 per cent of sellers.
The median losses ranged from about $30,000 to $55,000.
Transactions included the August sale of a three-bedroom house on Heber St in Hurstville for $74,000 below the price paid in December 2014. A nearby home on Beronga Ave sold in September for $10,000 less than its 2015 price.
A three-bedroom house on North St in Ryde recently sold for $1.22 million, well below the $1.51 million paid in 2016.
This Beronga Ave home in Hurstville sold in September for $100,000 below the 2015 price.
CoreLogic analyst Cameron Kusher said homeowners who sold recently purchased properties were in a vastly different position from those selling homes owned for decades.
“If you purchased your property many years ago, it will still be worth a lot more than what you paid for it,” he said, adding there was an upside to the sluggish sales environment.
“For people who don’t own a home, it’s good news because you’ve got a chance to get into the market.”