Short, sharp, stats & updates on what’s happening in Adelaide’s property market in June 2022
Market in a Minute / Episode 15
Dwelling values in Australia continue to rise, however, with a mere rise of 0.6%, last month’s growth rate was the lowest reading since October 2020 – which showcases that the housing growth rate is losing some momentum.
At the national level, sales volumes rose 13.7% in the 12 months to April, to an estimated 597,506. Looking into South Australia, Adelaide shines at the capital city growth table with housing values rising by 1.9%, adding approx. $11,500 to the values of the typical dwelling.
Auctions remain popular as Adelaide home buyers continue to face significant stock shortages. At Ouwens Casserly, we had more than 34 auctions and saw a clearance rate of 85%, in comparison to 80% across the state.
The disconnect between available supply & housing demand continues to drive up the prices and further insulates Adelaide’s property market from lower prices. The consistent high auction clearance rate is reflective of Adelaide’s strong selling conditions.
With the RBA lifting its official cash rate for the first time in 11 years, we can expect the property market to transition towards softer conditions in the coming future. As the cash rate rises, variable mortgage rates will also trend higher, reducing borrowing capacity & impacting borrower serviceability assessments. – Making it worth consideration to secure your property this winter before those predicted subsequent rises reduce your borrowing power further.
On the rental market front, Adelaide continues to outshine other major cities with the second-fastest pace of annual rental growth at 9.2%. Easing state & international borders resulting in a rebound in migration rates may also have a positive impact on Adelaide’s rental market.
Our team attracted more than 3553 participants to our property inspections and our properties’ median number of days on market was recorded at an enviable 31 days compared to the state record of 37 days.