How’s the South Australian Real Estate Market looking, as we enter the new financial year?

Based on the latest CoreLogic Report, our key take aways are;

For investment properties, it’s a strong market for growth. More equity available to reinvest into a larger investment portfolio.

For buying a first home, the rising property prices are making it much harder to get a foot in the door (There are ways around this, but the market conditions do not make it easy. Ask us how!).

Here’s the Adelaide data, that we are basing this on;

1.            Market Strength: Adelaide's housing market has definitely been eating its Weet-Bix. We’ve seen an increase in property growth by 1.8%. Contributing to the 4.3% rise over the previous quarter. This marks the fastest pace of growth over a three-month period since May of 2022.

2.            Annual Growth: Over the past year, Adelaide's median house price has jumped by approximately $95,400! This indicates strong annual growth in property values. Despite broader economic challenges, like the higher interest rates, and the rising cost of living (I am still in shock from earlier in the year, when heads of lettuces were $10!)

3.            Economic Factors: The Reserve Bank of Australia (RBA) maintained the cash rate at 4.35% for most of the first half of the year. This stability has provided certainty for buyers and sellers in the market, helping to sustain demand.

4.            Supply and Demand: Strong demand, coupled with a low supply, continue to increase pressures on property values throughout Adelaide. This imbalance between demand and supply is a significant driver in the increased prices we are seeing within the market

5.            Challenges: Despite the positive growth, there are ongoing challenges of affordability throughout the Adelaide property market. The interplay between demand, supply, and economic conditions will influence future market trends and affordability issues.

Our two cents:

Adelaide is on its way to looking like Sydney in the next few years, with property prices so ridiculous for 4 walls, to call home. If you haven’t considered getting into the market now, its probably a good idea to consider it.

If you have been thinking about purchasing an investment property, but waiting for the market to dip, before doing so, it doesn’t look like its going to slow any time soon.