Homeowners are staying put with a new study revealing the cost of selling is what is putting many off finding a new home.
Research from investment bank, Jarden, says homeowners are deterred by agent fees, legal fees and stamp duty costs.
Jarden chief economist Carlos Cacho says the costs associated with selling have increased at five times the pace of income over the past two decades.
Cacho says transaction costs for the average Sydney home have increased to more than $100,000 since 2000, in Melbourne it is up by about $80,000, and in Brisbane, it is $50,000.
He says the rise in selling and buying costs has blown out the period of time that owners typically retain a home for with the average holding period for dwellings now exceeding 20 years, up from 12 years in the early 2000s.
“Agent fees, which are usually charged as a share of the sale price, and stamp duty were the main culprits,” Cacho says.
