Adelaide home prices dip for the first time in more than a year

Property prices dropped across Adelaide in January – the first time in more than a year – but they’re still 10 per cent higher than they were this time last year.

Adelaide home prices have fallen for the first time in 16 months following a quieter start to the new year.

The city’s median property price dipped a slight 0.13 per cent in January – or around $922 – to $708,000, latest PropTrack figures reveal.

It is the first time monthly prices have dropped since September 2022, when they fell just 0.02 per cent.

Prior to that, prices declined 0.14 per cent in August 2022.

Property prices dipped slightly in January, latest PropTrack data shows. Picture: supplied.

Despite the marginal fall last month, Adelaide property prices were still 10.52 per cent – or $67,392 – higher than they were at the same time last year.

The double-digit annual growth makes Adelaide the third strongest capital city market in the country, behind Perth (15.45 per cent) and Brisbane (10.71 per cent).

PropTrack senior economist Angus Moore said Adelaide’s housing market had been “remarkably resilient” over the past year and its slight dip in January wasn’t necessarily a sign of what was to come.

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“January is a very quiet month for home sales because of the Christmas and end-of-year break,” he said.

“We just don’t tend to see as many homes sold in, particularly early, January.

“Certainly over the past year Adelaide has been extremely strong.

“We expect Adelaide will continue its momentum from 2023 and be one of the stronger performing cities, given its relative affordability.

PropTrack senior economist Angus Moore. Picture: supplied.

Turner Real Estate managing director Lachlan Turner. Picture: supplied.

“We wouldn’t expect to see quite as strong a pace of growth as last year though.”

Turner Real Estate managing director Lachlan Turner said his agency had noticed listings were down over the January period but that was just fuelling demand.

“Listing volumes are low so far and even lower than this time last year,” he said.

“It’s still very early in the year though.”

He agreed prices would likely continue to climb over the next year as a result of several factors, but he said there was one in particular that would drive growth.

“The population is the key to everything – it’s growing and there’s already a property shortage so demand will remain and it will remain for a long time,” he said.

Meanwhile, regional SA recorded 0.24 per cent growth in January and 10.45 per cent for the year, taking its median home price to $415,000.

Its annual growth makes it the strongest performing regional market in the country.