Homebuyers who want to take advantage of the booming conditions in South Australia and its capital Adelaide must act now before any potential rate cuts in the future make competition tight again.
Raine & Horne general manager James Trimble said buyers in South Australia have a short window to get into the market, especially with the forecast that after several rate increases, the Reserve Bank of Australia (RBA) would start easing the monetary policy in line with the inflation targets.
“While the Adelaide market continues to outperform other capital cities, my view is that if buyers think that we are in for a long-term real estate downturn, they must think again,” he said.
While more rate hikes are expected over the rest of the year and into the early 2023, Mr Trimble said the South Australian market would click immediately into gear and return to 2021 levels of activity once rates decline.
“In Adelaide, the market continues to tick along as genuine vendors continue to sell as genuine buyers compete for every property as mortgage interest rates are still relatively low.”
Adelaide reported the second biggest monthly gain in house prices based on CoreLogic data for July. On an annual basis, Adelaide posted the highest growth at 24.1%.
These gains have brought Adelaide’s median dwelling price to $650,047.
Mr Trimble said the slowdown over the past months was due to the traditional winter market jitters and the election period.
“Many buyers and sellers often put their real estate plans on hold during election campaigns and we’ve had a state and federal election, as well as the by-election for the state seat of Bragg in the city’s eastern suburbs,” he said.
Despite this, however, Mr Trimble said there are no signs pointing to a potential crash in the Adelaide market.
“With our more reasonable school fees, more affordable housing, and interest rate cuts now on the horizon, even with great growth, it's still a great time to get into the Adelaide market,” he said.
“While Adelaide real estate prices have finally started to catch up to Sydney and Melbourne, even our median house price is many hundreds of thousands of dollars cheaper than Sydney around and Melbourne.”
Photo by @glt23 on Unsplash.