It’s not something that is making headlines but Australians are staying put for longer.
In 2010 the average tenure for homeowners was seven years. This has been the case for a long, long time.
In 2019, it is 11 years.
That is an increase of 59%.
It means that the ‘cycling’ of residences has slowed considerably. It also means there is less resale stock flowing into the market.
Why is this the case?
Maybe people have realised the costs of buying and selling and can ‘suffice’ with their current home by investing a bit in improvements.
Stamp duty in NSW on a modest $800,000 home is over $31k. Selling costs would be another $25k – so $56k really gets you nothing whereas $50k invested in a refresh on your current home could make a lot of difference.
Less resale stock and falling supply of new homes exacerbates the imbalance between demand and supply and keeps pricing up.