New figures provided by RP Data Core Logic are showing that the dwelling prices in Adelaide are increasing faster than any other capital city, outpacing property heavyweights Sydney and Melbourne.
Adelaide prices have risen 0.5% in just a week and a whopping 2.9% for the previous month according to the data. Sydney recorded and increase of 0.8% in the month while Melbourne saw a dip in values by -1.6%
The represents great news for home owners but it is important to recognise that there is record low stock hitting the market meaning that people are now holding onto their homes for longer than in previous years. The low supply in new properties available is likely one of the key factors driving this growth.
In total, Adelaide home prices are up 4.7% in the past 12 months which is well above the forecasted 3.5%.
The current median price in Adelaide sits at $430,000 and the median unit price is $311,000.
Picture: 19 Ackland Avenue, Clarence Gardens sold $90,000 over reserve in November 2016 making it the 2nd highest sale price on record in the suburb.
Looking forward we will likely see buyers in the market right up until Christmas where things will cool off. We would expect the market to reopen in the new year with a similar pace to what it is currently.
The current low supply is causing frustration for many buyers as properties are neither being pushed out of their grasps price wise or selling before they have an opportunity to get their offers in. Buyers need to be well prepared in order to avoid disappointment and/or missing out on the one that they want.
Top tips for buying in the current market;
- Ensure your finances are in order so you do not hesitate when it comes to bidding or placing an offer.
- The less conditions on a contract the more attractive to a seller. For example, get a building inspection done prior to auction or in the cooling off period as opposed to including it in a condition of the contract. Conditions = currency.
- Be realistic about offers. Don’t miss out on the home of your dreams for the sake of a couple of thousand dollars. Over the course of 20-30 years the additional cost is minor.
Source: RP Data Core Logic