Short, sharp, stats & updates on what’s happening in Adelaide’s residential sales market for January 2024.
According to the latest CoreLogic report, national home values exhibited a 1.5% rise in the three months leading up to December, signalling a slight slowdown from the peak of 3.2% seen in the June quarter. However, the overall picture for 2023 reflects a robust recovery, with home values surging by 8.1% throughout the year—rebounding from a significant -4.9% dip in 2022. Despite this recovery, the annual growth rate remains lower than the extraordinary 24.5% recorded in 2021.
Adelaide continues to be a standout performer in the property market. December saw a 1.3% increase in dwelling values, contributing to an impressive 8.8% rise over the past year. Notably, Adelaide’s dwelling values have hit a record high, showcasing the city’s resilience and attractiveness in the real estate landscape.
Looking ahead, the current PropTrack report suggests that the momentum in home prices is likely to persist in 2024, albeit at a decelerated pace. Several factors contribute to this continued growth, including record net overseas migration, tight rental markets, low unemployment, and gains in home equity. Additionally, the implementation of stage three tax cuts from mid-2024 is expected to influence the market dynamics, particularly for higher-income earners who may show increased demand for higher-priced housing.
In the realm of monetary policy, the RBA board has decided to raise rates to 4.35% last month to mitigate the risk of an “unwelcome” rise in inflation. However, financial markets anticipate a potential reversal at the next RBA board meeting, with an expected interest rate decrease to 4.10%. (Asx.com.au, 2024)The resilience of Adelaide and the national market, coupled with upcoming policy changes, sets the stage for an intriguing journey into 2024. Stay tuned for more insights as we continue to explore the ever-changing world of Australian real estate.