Home values declining across nation, but Adelaide forging ahead

Across the nation, home values have been declining. But Adelaide has bucked that trend. Find out how we performed here, and what it means for those hoping to enter the market.

Adelaide’s property market is bucking the national trend, with houses increasing in value in June, a new report shows.

According to PropTrack’s Home Price Index for July, Adelaide house values increased by a nation-leading 0.42 per cent for June, while nationally, home values dropped 0.25 per cent for the month.

Adelaide home values are still on the up, PropTrack’s latest Home Price Index report shows. Pic: Supplied

Hobart was the second best performing capital city, up 0.26 per cent, closely followed by Perth which was up 0.12 per cent.

Sydney home values declined by 0.4 per cent, whereas in Melbourne home values dropped by 0.61 per cent.

Outside the capital cities, regional South Australia led the nation with 0.75 per cent growth for the month.

Looking at the past 12 months, Adelaide recorded the second-highest value growth of 23.39 per cent, trailing Brisbane by just 0.36 per cent.

PropTrack economist Paul Ryan said Adelaide’s market was impressing on a national stage.

“Adelaide continues to see solid growth, with prices up a further 0.42 per cent in June to reach a new price peak,” he wrote in the report.

“Adelaide continues to have the most momentum of any city market.”

PropTrack economist Paul Ryan. Pic: Supplied.

Mr Ryan said the market was cooling across the nation, and this looked set to continue into at least next year.

“Conditions in the housing market have slowed rapidly, marking the sharpest slowdown in prices in more than 30 years,” he said.

“We expect continued price falls across the country until the uncertainty about the extent of interest rate increases is resolved – likely extending beyond 2022.”

Real Estate Institute of South Australia interim chief executive officer Cain Cooke said the report was good news for homeowners, but would likely come as a blow to those looking to buy their first home.

While Adelaide values are up, they are falling in other states. Pic: Supplied.

“We are seeing a shift in market conditions - the numbers at open inspections are starting to pull back - but there is still strong interest and demand from buyers looking to secure a property,” he said.

“It is a challenging time for first homebuyers and one of the ways we need to address that is by tackling supply and affordable housing and creating opportunities in the tiers of the market they can afford to buy in.

“I’d certainly say to them to not be despondent, there is a way, but it certainly is a challenging time.”