House price boom over, but not in SA

Experts say SA’s housing market has plenty more room to grow, but prices in 50 towns and suburbs have softened since their pandemic peaks. See them here.

Industry experts have effectively declared an end to Australia’s property price boom, but economists say Adelaide’s market isn’t ready to slow down just yet and may still experience further growth.

According to realestate.com.au data, just 15 per cent of the 343 SA suburbs or towns to have recorded at least 30 sales over the past 12 months have shown value drops from their highest point last year, during the height of the coronavirus pandemic.

Conversely, 85 per cent of Adelaide’s suburbs and towns have seen monthly median increases since the start of 2021.

Suffering the greatest value loss since its October 2022 peak median of $1.03m is Maylands in Adelaide’s eastern suburbs.

Despite its median increasing 4.2 per cent over the past 12 months, its current median sits at $960,000 – 6.8 per cent below its peak.

Houses in Whyalla Norrie, on the Eyre Peninsula, currently have a median of $152,000 – 1.3 per cent up on this time last year, but 6.75 per cent below their November peak of $163,000.

Underdale and St Peters homes have both increased solidly over the past 12 months – Underdale is up 25.2 per cent and St Peters is up 36.6 per cent – but both recorded drops of more than 6 per cent from their peaks.

House prices are going up in many SA suburbs, new realestae.com.au data shows. Pic: supplied.

REA group executive manager of economic research Cameron Kusher said, nationally, price growth had been slowing for the past eight to nine months, particularly in Sydney and Melbourne.

“That rate of growth has eased, the peak is gone, but there are still prices in some places that are rising, albeit at a slower rate,” he said.

Of the SA suburbs and towns to have recorded a drop since their 2021 peak, 28 (56 per cent) of them were found in SA’s regional areas, while 22 were metropolitan suburbs.

This can present good buying opportunities for those who have struggled to enter the market.

Mr Kusher said the data suggested SA’s market was cooling across all regions and price points, and he was surprised to see as many as 50 suburbs make the list.

“It is still probably the strongest market, but it highlights that even a strong market can see prices fall,” he said.

But they have fallen from their pandemic peaks in 50 suburbs and towns, the data shows. Pic: supplied.

AMP Capital chief economist Shane Oliver said while prices were still rising on a national level, it was “fair to say the boom is over”, with Sydney and Melbourne appearing to have peaked and the rate of increase having “slowed to a crawl”.

He said Adelaide had likely passed its peak, but as it had typically lagged behind the two largest capitals, may still have some room to grow.

“I suspect it (the boom) will be over everywhere within six months,” he said.

“That said, there will still be some areas booming but not as much.”