Short, sharp, stats & updates on what’s happening in Adelaide’s property market in July 2022
Market in a Minute / Episode 16
Dwelling values in Australia have risen 14.1%, down from a cyclical peak of 22.4% recorded in the last year, showcasing a continued slowdown in the housing growth rate. Over the previous quarter, the increase in affordable housing value of 3.4% has outperformed the luxury homes segment throughout the country, which displayed a fall of -1.4% by comparison.
At the national level, sales volumes rose a mere 6.5% this quarter, to an estimated 586,602 properties. A blend of higher interest rates and rising inventory levels contributes to the slower market activity seen across the Australian housing market. All in all, properties are taking longer to sell, with current median days on the market at 28, up from a recent low of 20 days in the previous quarter.
Looking at South Australia in particular, Adelaide stands as an exception to this downward trend, seeing a quarterly growth rate rise of 1.8%, showing we are continuing to benefit from the affordability and pandemic-induced preference shifts.
At Ouwens Casserly, we had more than 32 auctions this past month, with a clearance rate of 85.11% in comparison to 60.6% across the nation. Our team attracted more than 3,548 participants to our property inspections and our properties’ median number of days on market was recorded at 31 days. One to highlight was our recent sale of a comfortable 3-bedroom home on the fringe of McLaren Vale with sea and vines views, which reached a whopping $2.35m under the hammer.
On the rental market front, Adelaide’s rental value outshines other capital cities with a rise of 9.8% in rental rates. Higher rental yields (3.7%) and a rise in migration rates further reflect positive prospects of the Adelaide rental market.
Turning to finance, after their 5th of July meeting, the RBA announced another 50-basis point increase, in line with market expectations, bringing the official cash rate target to 1.35%. The Reserve Bank has raised interest rates for the third month in a row and is expected to steadily raise the cash rate through to the end of the year and into 2023. We are likely to see further falls in housing values nationally, becoming more widespread as mortgage rates trend higher.