Housing affordability: Buying a house for under $600k in Adelaide just got tougher

New data shows the share of properties listed for sale for less than $600,000 has hit a record low in Adelaide.

The share of properties newly listed for sale and priced less than $600,000 has hit a record low in Adelaide.

Those keen to get their foot on the property ladder on a budget in Adelaide will now have to look even harder.

Latest data shows the share of properties newly listed for sale and priced less than $600,000 has hit a record low in Adelaide.

According to the PropTrack Market Insight report, which released today, the share of properties newly listed for sale on realestate.com.au priced less than $600,000 has fallen to a record low of 46.1 per cent of listings (houses and units combined) in Adelaide in October 2022, a sharp decline from 72.6 per cent recorded at the beginning of the pandemic (March 2020).

Described as an “ideal family home” this four-befroom home at 3A Hazelwood Place, Blakeview is on offer for $459,950.

Despite house prices falling in the last two months, fewer and fewer properties were now sitting under $600,000. The share of houses listed for sale on realestate.com.au in this price budget fell to 39.6 per cent in Adelaide in October 2022, the data reported. The share had declined from 68.7 per cent recorded at the start of the pandemic.

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PropTrack director economic research Cameron Kusher said that despite house prices having fallen across capital cities, the number of homes priced under $600,000 was continuing to decline.

“It reflects how strong price growth has been in Adelaide. When prices rise, it also pushes the cost up for lower-priced properties. The drop in number of listings also highlights how it’s becoming increasingly difficult for people with lower budgets to find properties,” Mr Kusher said.

This three-bedroom house at 24 Clare Mews, Munno Para West is on the market with a price guide of $379,000 to $409,000.

“It will push people out of Adelaide to the outskirts where you can find those properties or get people into apartments and townhouses whether there is a bit more supply available at those price points,” he said.

According to the report, there are still options for first home buyers in the unit market under $600,000.

Compared to houses, for units, the change has been marginal, declining from 93.6 per cent of new listings at the start of the pandemic to 82.9 per cent recorded last month.

“If there were more price falls in Adelaide, we might potentially see some increase in new listings under $600,000 but long term trends show there will be fewer and fewer properties listed under that price,” Mr Kusher said.

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Originally published as Housing affordability: Buying a house for under $600k in Adelaide just got tougher