August 19, 2021
Latest Adelaide real estate news, with Bronte Manuel
We’ve gathered plenty of anecdotal evidence recently to suggest Adelaide property is among the most highly sought-after in Australia.
Now a report released by property market analyst CoreLogic has confirmed it.
The report showed Adelaide had a sales-to-new-listings ratio of 2.0 for the past quarter, the highest of any Australian capital city. The average ratio across all capital cities is a record-high 1.4.
The sales-to-new-listings ratio is calculated by dividing the number of sales by the number of new listings over a set period.
For the past decade, the ratio has averaged 0.9 nationally, suggesting for each listing added to market, there was just under one transaction that took place.
When the ratio is 1.0, it suggests buyer demand and advertised supply is balanced.
Adelaide’s ratio of 2.0 shows that for each property that hit the market over the past quarter, there were two homes sold.
That’s undoubtedly a key factor in total listing levels dropping by 27.6 per cent compared with the same time last year.
Our findings across the TOOP+TOOP Sales Team has endorsed the CoreLogic data – sales volumes and results are strong but new listing rates have been slower than we’d usually expect.
We sold 55 homes last month at an average sale price of $935,934.
Yet many vendors remain hesitant to place their homes on the market, despite the strong selling conditions.
Dwelling values here continue to climb and still sit at a record high, up by 15.7 per cent over the past 12 months.
That’s on the back of a 1.7 per cent rise in the past month and 5.3 per cent increase for the quarter.
It’s interesting to note the value growth in Adelaide has been significantly higher than regional South Australia, where values have risen by just 1.8 per cent over the past quarter.
The top end of the Adelaide market has been particularly strong, too. Homes in the top 25 per cent of values enjoyed a 6.6 per cent increase, compared with a 4.6 per cent rise for the middle 50 per cent of values and 3.4 per cent for the lowest 25 per cent.
CoreLogic also reported that first-home buyers are comprising a smaller portion of market demand, mainly due to affordability constraints and fewer first-time buyer incentives.
In Adelaide, first-home buyers accounted for 26.8 per cent of owner-occupier housing finance commitments, where it had previously sat closer to 30 per cent.
With the traditional spring selling period drawing closer, we’re expecting to see a spike in listing levels in coming weeks.
However, with fewer than 5000 homes on the market in Adelaide and a large pool of keen buyers, the market should remain very buoyant for some time.