Short, sharp, stats & updates on what’s happening in Adelaide’s residential sales market for June 2024.
According to the latest CoreLogic report, Adelaide continues to show impressive growth in the housing market. In May, home values in Adelaide rose by 1.8%, contributing to a significant increase in the median dwelling value over the past year. In dollar terms, this translates to an approximate $95,400 rise in just 12 months.
Interestingly, unit values in Adelaide are outpacing house values, with a 7.4% increase for units compared to a 5.6% rise for houses over the first five months of the year. This trend highlights the growing demand for more affordable housing options within the city.
A key factor driving this price growth is the extremely low supply of advertised stock. Currently, stock levels are 40.3% below the five-year average for this time of year, indicating that properties are being quickly absorbed by eager buyers. This scarcity is putting upward pressure on prices, making the market increasingly competitive.
Despite the challenges posed by high interest rates and rising living costs, Adelaide’s housing market remains robust. However, this resilience is contributing to worsening housing affordability. The national dwelling value to income ratio has climbed to 7.7, and it now takes about 10.3 years to save for a 20% deposit, assuming households can save 15% of their gross income.
As we look ahead, Adelaide’s housing market is likely to continue experiencing upward pressure on values, coupled with ongoing affordability challenges. Even with high interest rates, the demand for housing in Adelaide shows no signs of slowing down.
If you are looking to buy, sell, lease or have your property managed this winter, reach out to one of our specialist property consultants here within the OC team.
