Market Update – October

As we enter the month of October, it’s truly noteworthy to observe Adelaide’s housing market continuing its steady climb, reaching unprecedented heights.

August witnessed an increase of 1.1% in Adelaide’s housing values, pushing them to a new record high. Currently, the median house value in Adelaide is $682,642. Over the past five years, Adelaide’s home values have shown an impressive increase of 49%, marking the most substantial growth among all the capital cities.

A significant contributing factor to this growth is the limited supply of available properties, with listings dropping to nearly 42% below the previous five-year average for this time of the year.

Furthermore, Adelaide boasts the lowest rental vacancy rate of any capital city, standing at a mere 0.4%. These extremely tight rental conditions are likely encouraging more individuals to explore the option of homeownership, especially amidst this ongoing rental crisis. 

In conclusion, as housing values continue their upward trajectory over the last six months, it’s evident that the Australian housing recovery is firmly entrenched, albeit with some regional variations. While the market overall is on the rise, certain challenges persist.

With interest rates not expected to decrease until 2024, more households may have to deal with mortgage stress. Until consumer confidence experiences a substantial boost, we may not see a significant increase in active homebuyers. 

Whether you’re a buyer, seller, or investor, stay tuned to see what the next months bring to the Australian and South Australian property markets!

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