Adelaide home prices almost $86k higher than a year ago following months of steady growth
This city’s median home price has soared to a new record that’s nearly $86,000 higher than this time last year.
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Adelaide home prices are almost $86,000 higher than they were this time last year following another month of steady growth.
Latest PropTrack figures, released on Monday, reveal the city’s median property price climbed 0.31 per cent in March and 13.47 per cent over the past year to a record high of $723,000.
That’s up $2234 on the previous month and $85,827 higher compared to March last year.
The annual growth makes Adelaide’s property market one of the strongest among the country’s capital cities – it only trailed Perth, which recorded 18.62 per cent growth.
According to the PropTrack report:
+ National home prices reached a new peak in March, up 0.34 per cent month-on-month and 6.79 per cent year-on-year.
+ Smaller capital cities Perth, Adelaide and Brisbane reached a fresh peak in home prices in March, with prices growing by 18.62 per cent, 13.47 per cent and 12.90 per cent respectively over the year to March 2024.
+ In Sydney, home prices have grown 8.11 per cent over the past 12 months, while annual growth has been sluggish in Melbourne with just a 1.71 per cent increase.
+ Price growth in regional markets lifted 0.19 per cent to a new peak, with all areas except for regional Victoria recording price growth in March.
+ Along with their respective capital cities leading annual price growth in March, South Australia, Queensland and Western Australia had the strongest market activity for the regions, with annual growth of 12.81 per cent, 10.18 per cent and 10.01 per cent respectively.
ADELAIDE’S ‘DRAMATIC’ HOME PRICE RISE
Adelaide unit prices climbed at a slightly faster pace than houses in March – 0.66 per cent to a median of $542,000 compared to 0.27 per cent to a $775,000 median for houses.
However, house prices outpaced those of units over the past year – a 13.66 per cent rise compared to 11.89 per cent for units.
Meanwhile, regional SA’s median home price rose 0.64 per cent in March and 12.81 per cent over the past year to $439,000 – both higher than any other rural areas in the country.
Real Estate Institute of South Australia chief executive Andrea Heading said prices would likely continue to rise at a steady pace over the next few months.
“Everything that we’ve read or been told is that it’s still going to go up, but it wouldn’t be dramatic price rises,” she said.
While limited supply was largely driving demand, Ms Heading said people were feeling confident enough to put their homes on the market, in part thanks to an expected interest rate fall later in the year.
“Normally what we’d see now, coming into autumn and winter, we see that not a lot of listings come on and September is when the resurgence starts again.
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“I know the Hills have had a good amount of listings come onto the market but it’s everywhere.
“From a sales perspective, it’s such a good time to put your property on the market, but then it’s where do they go if they sell?”
PropTrack economist and report author Eleanor Creagh said Adelaide was one of the country’s “top performing markets”, with home prices up 2.24 per cent so far this year.
“The comparative affordability of the city’s homes has seen prices defy the significant increase in interest rates since May 2022,” she said.
“Low stock levels are also intensifying competition, with home prices in Adelaide rising at a fast pace over the past year.”
Nationally, home prices rose 0.34 per cent in March to hit a new record median of $768,000.
They have climbed 1.57 per cent so far this year and are 6.79 per cent above March 2023 levels.
Ms Creagh said despite an increase in the number of homes hitting the market this year, demand absorbed the surge, leading to further price increases.
“The expectation that interest rates may begin to move lower in late 2024 will sustain buyer and seller confidence,” Ms Creagh said.
Several factors – including demand because of tight rental markets, population growth, resilient labour market conditions and home equity gains – were likely to keep pushing prices up in the months ahead, according to Ms Creagh.
Meanwhile, she said sharp rises in construction costs and labour and material shortages have slowed new builds.
“The imbalance between supply and demand is likely to further offset the impact of affordability constraints and a slowing economy,” Ms Creagh said.
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