July 15, 2021
Latest Adelaide real estate property news, with Bronte Manuel
New listing levels are on the rise but demand for Adelaide homes continues to outweigh supply, resulting in an extremely buoyant property market that shows no signs of slowing.
At TOOP+TOOP, we sold an average of more than two properties per day over the past month, with an average sale price just shy of $1 million.
Those sales have included some extraordinary results.
For example, a character home purchased in January was re-sold by our team in June for an extra $355,000 without any changes of note to the property. That equated to an increase in value of more than 20 per cent in less than six months.
That wasn’t an isolated case, either, with many of our recent vendors selling their properties at prices well beyond expectations.
Put simply, we have a large pool of very motivated buyers vying for similar properties, creating significant competition for some homes.
The latest data supplied by property analyst CoreLogic underlines the strength of the market at both a local and national level.
Australian dwelling values rose 13.5 per cent in the 2020-21 financial year, the highest annual growth rate since April 2004.
In Adelaide, home prices still sit at a record high, with a spike in value of 13.9 per cent over the past 12 months on the back of a 1.6 per cent increase for the month and 5.6 per cent increase for the quarter.
By comparison, Darwin experienced an annual growth rate of 21.1 per cent, while Melbourne home values increased by 7.7 per cent.
While the 28-day rolling change in the CoreLogic Home Value index has slowed across the combined capitals, reports from our sales team in the field suggest the Adelaide market is as strong as ever.
CoreLogic data supports those findings, with a 28.1 per cent increase in sales volumes here over the past 12 months and the median days on market dropping to 32 compared with 45 days at the same time last year.
It’s also interesting to note the strength of the higher end of the Adelaide market, with the upper quartile registering an increase in value of almost seven per cent over the past three months.
A sparsity of listings continues to be a challenge, however, and is no doubt a key driver in the increase of property values.
While the number of new properties hitting the market in Adelaide last month grew by 38.2 per cent, they continue to be absorbed by the volume of sales.
As a result, total listing levels remain particularly low, down 22.7 per cent compared with the equivalent period last year.
There are suggestions some vendors are choosing to ‘hold’ their properties until the peak spring selling season in the hope of maximising returns.
While there’s no evidence to suggest the Adelaide property market will ease in coming months, a significant increase in listing levels would provide greater choice for buyers and, as a result, could diminish competition for homes to some degree.