Adelaide home prices reach new peak in October

South Australia and Adelaide continued to defy the home-price downturn across Australia, with the latter even reaching a new peak after home prices in the city strike another gain in October.

According to PropTrack Home Price Index for October 2022, national dwelling prices fell by only 0.06% over the month, the smallest decline since the national home prices peaked in March 2022.

Conditions on South Australia and Adelaide remained strong, with the capital city recording a 0.12% price growth to reach a new peak over the month.

PropTrack senior economist Eleanor Creagh said the rising rates have quickly rebalanced the housing market from last year’s extreme growth.

“Prices have fallen from their peak nationally. However, the pace of price falls has slowed from the faster falls seen earlier this year when interest rates first started rising,” she said.

In fact, the widespread falls seen across capital cities even reversed in some — Melbourne, for instance, bucked the recent trend of declines and reported a 0.02% gain in October.

Ms Creagh said sellers seemed to have learned to adapt to the market conditions, while buyers have taken advantage of less competitive conditions amid the spring-selling season relative to last year.

“The RBA appears done with frontloading the tightening cycle, slowing the pace of its hikes — this may give prospective buyers a confidence boost,” she said.

“With further rises on the horizon, borrowing costs will increase and maximum borrowing capacities will reduce, weighing on prices. This will be offset by tight rental markets, rebounding migration, low unemployment, and housing supply pressures.”

—

Photo by Tourism Australia on Canva.