Adelaide's residential market drifted lower over the September period with median house prices falling by 0.55% to $373,000. Units also fell slightly by 0.64% to median value of $291,500.
This slowdown in growth is not surprising at a time when the faltering global economic environment is weighing down on consumer confidence.
Peter Koulizos, university lecturer, property investor and author of 'The Property Professor's Top Australian Suburbs' says the Adelaide market has been greatly affected by what is happening globally, but he expects the doom and gloom to pass shortly.
"Traditionally spring time is a good for property, but we're finding that the fear factor is holding people back from making offers and going to auctions and this is having an impact on the property market," Koulizos explains.
"But this won't last forever and sooner rather than later the state factors (such as mining and defence booms) will kick in and the positives will outweigh the negatives. We just have to weather the storm and the market will turn again next year."
Robin Turner, president of the Real Estate Institute of South Australia (REISA) says
The Adelaide market showed great strength over the September quarter, despite REISA figures reporting a 20% to 25% drop in the number of sales transactions.
"The buyer activity is noticeably slower, and the time on market has blown out from days (seen this time last year) to months now. But prices are holding very well and where there has been reductions in areas 45-50kms from the CBD, your inner city avenue properties are holding very well indeed," Turner explains.
"But the Adelaide market is quite resilient. Investors may be adopting a wait and see attitude, but they continue to see bricks and mortar as excellent investments especially with the current share market having a horrible time and the cash market coming down. So property investment is a very solid option for people at the moment."
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