How is the current market looking?
With the median property price sitting at $549,000 this has already seen a 3.7% increase over the March quarter, which is sitting higher than usual but don’t let this freak you out there’s room in the property market for everyone.
Adelaide is currently the third most affordable city to purchase a house, followed behind Perth and Darwin. This is a great sign and you’re definitely in the right place with Adelaide being named the 3rd most liveable city in the world!
Units and houses have been selling at the highest level since 2007, the current flow of new listening has not been able to keep pace with buyer demand creating competition that the Adelaide housing market has been experiencing for quite some time.
We have seen an increase of purchase by investors particularly toward lower purchasing price and tight rental market. Interstate migration has always been a constant drain on housing demand, however the stark turnaround has enabled a positive flow of residents into South Australia for two consistent quarters.
Record Low Interest Rates
Interest rates in Australia have fallen to a record low, there are both short-term and long-term factors that have driven rates low globally. Particularly in Australia one of the shorter-term domestic factors is weak consumption of growth, which is driven by weak wage growth, consumers are feeling burdened by high levels of household dept. As economy growth has shown to be weak due to the impacts of COVID-19 this means that inflationary pressures are low and as a result interest rates need to be lowered.
With interest rates sitting at a record low buyer demand and sales volume are currently higher in comparison to a year ago, this will be a continuing trend throughout 2021. While low borrowing costs are a strong incentive for potential buyers, there is now strong employment growth, and high consumer confidence in response to the government’s HomeBuilder program. Interest rates will definitely play a part in the stronger than usual winter property market.
When will it slow down?
With the booming rise in Australian property prices since the beginning of the pandemic, we are seining low interest rates and a huge shift in people seeking change of lifestyle. Considering the current property market, it’s predicted that prices are tipped to surge by 20% throughout 2021 and 2022. The rapid pace of growth in early 2021 is expected to slow next year, as the gradual slowdown within the property market will be a result of affordability constraints and less government stimulus.
What does the future hold?
Home prices are surging around Australia and with the current property demand from home buyers the market is set to remain strong. More and more Australians are looking at dipping their toes into the property market, this will have a strong ongoing demand for years to come. With borrowing costs lower then they have ever been, the reassurance that interest rates won’t see a rise for at least 3 years is increasing confidence that the buyer demand will remain strong throughout the winter seasons and remaining of the year.
How can we help?
When it comes to making that first purchase, we are here to help you find a property that is suitable and specific to your needs. Don’t hesitate to get in contact with our team while the market is still hot!
