Australia’s housing market is facing significant challenges, with both buyers and renters feeling the impact of rising prices and a severe lack of supply. South Australia, in particular, is seeing rapid growth in property values while the rental market remains tight across the country. However, that doesn’t mean it’s not a great time to move.
The growth is starting to slow and even out, and the local property market confidence is rising. Despite this growth, some experts believe prices may stabilise towards the end of 2024 as affordability constraints limit further increases.
Here’s an in-depth look at the state of the housing market in Australia and advice for those looking to buy or move.
Buying in the Adelaide housing market
Although slower than in previous years, the Australian housing market continues to grow. Although the rate of price increases is not as steep, the market still poses challenges for those seeking to buy property.
According to CoreLogic’s monthly Home Value Index (HVI), the national median home value rose by 0.5% in August 2024, marking the 19th consecutive monthly increase. Currently, the national median value stands at $802,357, with some cities like Perth and Adelaide seeing significant rises, while Melbourne and Hobart experienced minor declines.
Adelaide’s home values surged 1.4% in August alone, with a median price of $776,597. However, a recent article points out that the confidence in the South Australian property market is the best in the country, with an increase of 9 per cent from the previous quarter.
This uptick in confidence reflects a general sense of stability in the market, which could signal an easing of price growth later in the year.
Even though the market is still competitive overall, South Australia offers a more attractive option for buyers, particularly as growth shows signs of tempering. It’s a great opportunity for those looking to enter the market before further price hikes.
Advice for buyers
Timing
With property prices still rising but at a slower rate, the end of 2024 could be an exceptional opportunity for buyers. Those who have been waiting for the right moment to enter the market may find that the slowing pace of price growth offers them a better chance to purchase a property before prices climb higher.
Location matters
When buying a property, location is a key factor. In high-demand areas, prices tend to be higher, which may push some buyers out of the market. However, looking beyond the more popular suburbs could uncover better value. In South Australia, suburbs outside the metropolitan Adelaide region might offer more affordable options, such as Andrews Farm, Christie Downs, Mount Barker, Woodcroft and more.
Government assistance
First-home buyers in Adelaide should take a look at the government schemes and incentives designed to make homeownership more accessible. For example, first-home buyer grants, stamp duty exemptions, and low-deposit home loan schemes can significantly reduce the financial burden of purchasing a property. In South Australia, these initiatives can provide much-needed support for buyers who are trying to enter the housing market.
Australia’s housing market remains challenging for both buyers and renters, and South Australia is no exception. While the pace of price growth may slow in the coming months, the fundamental issue of undersupply persists, and it could take years for supply to catch up with demand.
For those looking to buy or rent in South Australia, it’s essential to stay informed of the Adelaide housing market and jump on opportunities that fit with your lifestyle and living goals. Whether you’re considering purchasing a property in a less competitive suburb or taking advantage of government incentives, a clear plan and a focus on long-term goals will help you succeed in this challenging market.
