Adelaide has always been known as the ‘affordable state’, especially when compared to the eastern states.
Over the past couple of months, buyers have become bewildered at the increase in property prices and the level of competition that faces them at open inspections and auctions.
Adelaide property prices have hit a record high in recent months which experts say is great news for people selling, but it is causing some angst for buyers trying to break into the market. There are not enough houses on the Adelaide property market to keep up with demand and there is an abundance of interstate interest.
Late last year, Adelaide's median house price reached a record high, peaking at $510,000, and so far, this year, dozens of properties in various suburbs have exceeded expectations which is likely to cause an increase over the next few months.
"It is a testament to South Australia's reputation as one of the safest, most affordable and most liveable places in the world” the state’s Real Estate Institute stated in their December quarter report.
There are several factors driving up prices. With supply down and demand up, and properties selling for tens of thousands of dollars above the asking price, Adelaide has become a seller's market. Experts say the reasons for the price boom include fewer listings, higher levels of interstate interest, the impact of coronavirus on disposable income, and South Australia's comparative success in dealing with the COVID-19 pandemic. Some properties in Adelaide are currently selling for more than $100,000 in excess of the asking price with data also showing that the total number of listings for houses and units across Adelaide have declined dramatically in recent months.
Real Estate Institute of SA chief executive Barry Money described what was occurring in the South Australian capital as a "mini-boom". Watch this space Adelaide!!
So if you're currently looking at capitalising on the Adelaide seller's market and you have questions regarding finance, please give us a call on 8300 8300.