When COVID-19 first began in 2020, there were plenty of messages of doom and gloom in the media, including around the impact this virus would have on the economy and property market.
With many well-known economists predicting that house prices in Adelaide would fall by anywhere from 5% to 30%, there was much fear and uncertainty as to how things might play out over the year.
While this uncertainty did lead to a minor decrease in the market early in 2020, in reality, the fallout from the virus actually went the complete opposite way to predicted. As the situation with COVID-19 improved across Australia, particularly here in SA, we saw confidence begin to grow again, both from a residential and commercial perspective.
According to statistics from the Real Estate Institute of South Australia (REISA), though the number of houses for sale was down during the June quarter when compared to the same period in 2019, the median house price continued to increase, with both statistics peaking in the September quarter. Metro-Adelaide performed particularly well on the median house prince front, increasing by 10.81% from $370,000 in 2019 to $410,000 in 2020 during the September quarter.
A recent article on realestate.com also showed there were no signs of slowing down as the year drew to a close and we moved into 2021, with many auctions scheduled right up until Christmas and for the first weekend in January, a time that has previously been quieter for the market.
With all this in mind, it can still be difficult to predict what might happen in the year ahead, but if the market can survive 2020 well and truly intact, we think things are looking pretty positive for 2021!
If you’re considering putting your property on the market in 2021, or are interested in buying while the market is booming, get in contact with the Eastern Conveyancing team to find out how we can help.