November 15, 2023
Our latest Adelaide property update, with Bronte Manuel
Adelaide stock levels have experienced a mild boost through the peak of the spring selling season, but increased availability has done nothing to dull buyer competition.
In fact, Adelaide dwelling values remain at record-high levels on the back of consistent and sustained growth.
The latest report from property market analyst CoreLogic showed that home values here have risen by 1.3 per cent for the month, 4.2 per cent for the quarter, and 6.5 per cent over the past 12 months. That three-monthly growth rate is the second highest of any capital city, behind Perth’s 4.6 per cent increase.
As a result, the median sale price for metropolitan Adelaide has risen to more than $710,000 according to official figures released by the Office for the Valuer-General. By comparison, the median value in December 2019 was just $471,000.
Our team at TOOP+TOOP certainly delivered some powerful results last month. We sold 63 properties over that four-week period at an average price of more than $1.23 million. Significantly, the average days on market for those homes was just 17 days, well under the broader South Australian agency average of 29 days.
In simple terms, many of our listings are selling quickly for prices beyond vendor expectations.
While CoreLogic's recent data indicates a 4.3 per cent rise in new listings for the month, total listings are still down 8.9 per cent compared with the same time last year, reflecting a market that is still grappling with limited supply.
Those figures suggest that while sellers are gradually entering the market, the overall inventory has not yet reached the levels needed to ease the competitive tension among buyers.
The most recent interest rate rise of 25 basis points may create a level of hesitation with some buyers, but the previous 12 rate rises since May 2022 had a relatively minimal impact on selling conditions. It could be argued, however, that we are approaching a level where affordability issues could slow buyer activity at some price points.
As the year draws to a close, we anticipate the market to maintain its current trajectory, with both buyers and sellers keen to finalise deals before the holiday season.
The Adelaide property market continues to offer valuable opportunities for discerning investors and homebuyers, with its strong performance indicators and competitive environment.