Affordable housing in Adelaide selling quickly amid low supply, high demand

LOW supply and high demand for affordable housing is leading to quick sales and good prices for home sellers, real estate experts say.

Affordable homes are driving the market. Lisa Morgan had an editorial in last weekend's real estate magazine to sell her Nairne home and since had over 100 view her home which the agent says is unheard of. Story is about the high demand and low supply of affordable homes and the success of print advertising. Pic: Tricia Watkinson.

LOW supply and high demand for affordable housing is leading to quick sales and good prices for home sellers, real estate experts say.

RP Data figures show there are currently 2092 less Adelaide private treaty homes and 55 less auction homes on the market than there were this time last year.

At the affordable end of the market, there are 982 SA private treaty houses for sale for less than $300,000, 359 fewer than this time last year, and 646 units, 81 fewer than last year.

There are also 1629 private treaty houses on the market between $300,000 and $500,000, 810 fewer than this time last year, and 521 units on the market in the same price range, 46 more than last year.

Real Estate Institute of South Australia chief executive Greg Troughton said increased confidence was generating strong competition among buyers of affordable homes.

“We can see the lowness of interest rates taking effect and the competition with the banks is also helping,” Mr Troughton said. “Less stock and more people wanting to buy will help push prices up in that affordable bracket.”

Mr Troughton said stalling investor activity in the bottom end was making conditions ideal for first homebuyers.

“It seems the investors have had their feeding frenzy and are having a rest, giving the first homebuyers the opportunity to enter the market,” he said.

Toop&Toop Real Estate director Anthony Toop said the costs of buying were comparable with, and sometimes cheaper, than renting.

“There are a lot of people who are feeling comfortable in their jobs that see these affordable homes are an alternative to renting,” Mr Toop said.

“Affordable properties are available and you don’t have to go out into the sticks to find them.”

He said if housing stock levels didn’t increase significantly during spring, demand would push prices even higher.

“Now is a fantastic time to put your home on the market because, by late October, the market saturates and prices soften,” Mr Toop said.

Lisa Morgan’s $295,000 to $305,000 Nairne property featured in a full-page editorial in last Saturday’s The Advertiser Realestate magazine.

About 130 people have since inspected the home and Ms Morgan’s agent, Dee-Anne Hunt of Harcourts Adelaide Hills, had to schedule an extra open inspection to meet the demand.

Since last Saturday, Ms Morgan has received eight offers on her home.