With the  economy stabilising, Adelaide – capital city of South Australia – offers reasonable home prices and also boasts steady expansion. Versatile industries in Adelaide range from manufacturing, education and retail to tourism and agriculture. With government support, the city’s infrastructure has undergone impressive development, while Adelaide’s population growth and high quality of life make it an ideal home for investors, families, students, and professionals of all ages. It is a choice locale for home buyers and investors.

Adelaide housing market values are maintaining a level 42.8 per cent higher than pre-Covid values, regardless of current interest rates. According to data from CoreLogic, the property research firm, this increase is a cyclical peak As stated by Mr. Lawless (Corelogic expert), not only the metropolitan, the regional South Australia also experienced an impressive housing value increase throughout 2022, equalling 17.1 per cent.

 

Effect of Current Home Prices on Property Owners, Buyers, and Sellers

The current higher home property values in Adelaide still offer a welcome benefit for residence owners. Although these significant increases in home prices were discouraging some eager property buyers, Adelaide’s housing prices are still quite reasonable compared to other capital cities. In addition, the reasonable housing rental rates help keep home seekers in lower income brackets moving into the city. With affordable housing options available for professionals, executives, and staff of different salary levels, Adelaide attracts a balanced workforce for the city’s varied industries.

Recent figures from CoreLogic reveal that the median rental rate in Adelaide was $518 during the December quarter of 2022. This was an increase of 12.9 per cent for the year. Yet, Adelaide still maintains the position of Australia’s second most reasonable capital city for residential rent costs. Surprising the most affordable city for rental was Melbourne, with an average rental rate of $507. Adelaide is third most affordable city to live in after Tasmania and Darwin in terms of property prices.

 

 

 

Predictions for Home Value Trends in Adelaide During 2023

Some predictions are that Adelaide home prices may fall during 2023. This is due to the fact that the cash rate is likely to increase and peak by mid-year. Yet, this city has traditionally maintained reliable home property market strength, regardless of market fluctuations in other regions of Australia. Although there may be a correction, we don’t foresee a significant drop in housing prices, as SA is moving towards a net positive migration, more employment and new and expanding industries such as space, film and technology.

Post-covid many families, professionals, industry executives, and all levels of workers  continue to relocate to this attractive capital city. Students and families with children of all ages also view Adelaide as an ideal place to live.

There are many homeowners asking whether they should sell their properties or wait it out in the current climate. The home sellers who will be buying whether they are upsizing, relocating or downsizing should not stress over the economy as they are buying and selling in the same market. Whether the market is up or down it does not affect them.

First home buyers and investors are also encouraged to do their research and historically are better off buying rather than wait as the property market in SA does not go through the same peak and troughs as other major capital cities and has always been steady.

 

Concluding Thoughts

Of course, it is essential for potential home buyers and investors to remember that buying property is a long-term investment. Buyers and investors should keep in mind that the property market can experience fluctuations and changes of varied degrees. Whether you are seeking a new residence for yourself, for you and your partner, or for your family in another city or town, be sure to research the property market carefully. Real estate investors should follow the same process. Currently the investors are reaping the benefit in a strong rental market with a good ROI (return on investment) and easily find good tenants due to high demand and low supply.

Whether you are thinking to sell or buy, take time and speak to professionals such as local real estate agent, financial planner or finance broker to evaluate any home that interests you thoroughly before making an offer on a property. In addition, you should consider your financial situation before selling or buying a house. It is also advisable to consult a financial advisor or real estate agent before you sell or buy. You can then enjoy choosing your next home or investment property in Adelaide with expert knowledge and confidence.