Homeowners making record profits as housing market cools

Homeowners continue to make record profits on reselling their properties, even as the housing market begins to cool from its boom years.

Analysts Cotality found the national resale profitability rate reached its highest level in more than 20 years as the median gain hit a record in the March 2026 quarter.

A whopping 96 per cent of residential property resales delivered a nominal profit in the quarter, the strongest result since 2005 - though up just 0.1 per cent on December’s 95.9 per cent rate.

The median gain reached a record $377,000, while the median loss remained unchanged at $45,000.

Cotality head of research Gerard Burg said despite signs of slowing momentum across parts of the housing market, sellers were still benefiting from growth built over many years.

“The strong resale results we’re seeing today largely reflect the substantial value growth accumulated over recent years rather than current market conditions,” Burg said.

“Housing values continued to rise through most of 2025, and many sellers have benefited from holding their property through multiple growth cycles, which has allowed them to build significant equity over time.”

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However, in what’s perhaps a sign of things to come, those few owners who did sell at a loss were more likely to be recent buyers.

Houses that sold at a loss had been purchased an average of 4.3 years ago in the March quarter, which meant they were last on the market at its peak in late 2021 and early 2022.

By contrast, profit-making properties were held for an average of 9.1 years.

“The figures illustrate the value of a buy-and-hold approach to property ownership,” Burg said.

“Time remains one of the most effective ways to absorb market cycles and improve the likelihood of a positive resale outcome.”

Brisbane was the most profitable city to sell in during the March quarter, with 99.8 per cent of resales making a profit, and a median gain of $525,190.

Adelaide came second, with a 99.3 per cent resale profit rate and houses making $477,000 for their vendors on average.

Perth was also strong, with a 98.9 per cent resale profit rate and a median profit of $475,000.

“Brisbane, Perth and Adelaide have all benefited from strong population growth, tight housing supply and sustained buyer demand,” Burg said.

“Many owners who bought before the recent upswing, during a period of affordability and low interest rates, are now selling into a market where values have risen substantially, translating into some very significant resale gains.”

Houses remained a bigger seller than units, both more likely to sell at a gain (98.1 per cent to 91.9 per cent) and for larger profits ($440,000 to $256,000 on average).

Melbourne’s unit market remained one of the country’s weakest, with just 81 per cent of resales generating a profit.

Coastal lifestyle markets continued to dominate the list of Australia’s strongest-performing regions.

Noosa, on the Sunshine Coast in Queensland, recorded the nation’s highest median resale gain at $729,750, due to strong long-term demand and limited housing supply.

Overall, although resale profitability remains exceptionally strong, Burg said the strong pace of growth recorded over recent years post-pandemic was unlikely to be repeated across all markets.

Cotality’s national hedonic home value index showed no growth in May, and conditions have become more varied, with declines underway in Sydney and Melbourne while other markets continue to record growth.

“The resale results for the March quarter are a reflection of the strong housing conditions experienced across most capital cities over the past five years rather than a forecast of where the market is heading next,” Burg said.

“Declining values will erode profitability in the coming months, but future performance will increasingly depend on local market conditions, property type and when a property was purchased.”