Core logic has released a housing market update for July 2017. The following information explains the current market conditions for Adelaide and the combined capital city housing market.
Since the end of 2008 Adelaide home values have increased by a cumulative 17% with values increasing by 2.4% over the past year. However more recently in the July quarter, Adelaide home values noticed a -0.2% change. Total listing numbers in Adelaide have increased over the past 12 months by 1.5%. The average days on market have decreased from 52 days 1 year ago to more recently 44 average days on market. Unit approvals have seen a big decline in May while house approvals maintain at a steady rate. In regards to the change in combined capital cities dwelling prices, there has been a decline in the past quarter which was impacted heavily by a slowdown in the Sydney market.
In regards to auction clearance rates in Adelaide, they have trended lower this quarter with Adelaide’s most recent preliminary clearance rate at 56.1% from 61 reported auctions. This time last year however there were 68 Adelaide homes taken to auction with a clearance rate of 69.5%.
Unemployment has decreased to its lowest level since February 2013 with particularly strong growth over the past 8 months which is great for economic confidence and housing affordability.
34.8% of all new housing finance commitments in SA are investors however; with investor incentives decreasing and first home owner incentives increasing we can expect this percentage to drop in the future.
Rental growth has strengthened in regards to combined capital cities over the past 12 months. This could be attributed by strong migration rates and low rates of owner occupier first home buyer purchasers.
Sources: core logic rp data 2017