Short, sharp, stats & updates on what’s happening in Adelaide’s residential sales market for May 2024.
According to the CoreLogic report, the national Home Value Index (HVI) surged by 0.6% in April, marking the 15th consecutive month of growth.
A notable trend observed is the strengthening of growth conditions across lower-priced properties. Nearly every capital city is experiencing this shift, reflecting a preference for more affordable housing options. Additionally, regional markets are displaying resilience, with slightly stronger quarterly growth compared to capital cities, a reversal from previous trends.
In Adelaide, home values increased by 1.3% in April, slightly lower than the growth rate observed in March. However, the unit sector remains robust, leading in capital gains with values up by an impressive 14.5% over the past year, outpacing house values. Lower quartile home values have also risen at double the pace of the upper quartile, indicating broad-based growth across different market segments.
As housing affordability becomes more challenging, demand is likely shifting towards lower-priced areas, including the northern suburbs and the outer south, as well as the unit sector, where the median value is nearly $290k lower than the median house value.
In the realm of monetary policy, the Reserve Bank of Australia (RBA) maintained the cash rate at 4.35% in its May 7th meeting. Despite concerns about higher-than-expected inflation, the RBA refrained from implementing further interest rate hikes, avoiding a “tightening bias.” This decision provides relief to borrowers and underscores the RBA’s cautious approach in navigating economic uncertainties (The Guardian, 2024).
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.
