Stability For The South Australian Property Market
You can be forgiven for thinking that much of the recent data and subsequent media coverage regarding the national housing market has been generally negative in tone.
For example, the end of April saw the release of the RP Data-Rismark Home Value Index, which showed that capital city dwelling values were flat in the month of March, and over the March quarter had displayed a conspicuous decline.
There is also much talk in the public domain about the effect of rising interest rates, a long-term housing shortage, poor housing affordability and the various taxes buyers must pay, which I daresay are not contributing a great deal to positive sentiment in the market.
It was therefore refreshing for me to recently become aware of the latest happenings in the South Australian residential market, which saw the strengthening of both metropolitan and country house prices over the March quarter.
According to the Real Estate Institute of South Australia (REISA), Adelaide house prices rose 0.49% over the quarter to $410,000, with a 1.23 per cent increase over the past 12 months, continuing the trend seen in the last quarter of 2010.
The President of REISA, Greg Nybo, said that the results were positive, given that there was an interest rate rise in November and with the abundance of stock present in the marketplace. He feels that the sales figures from the first quarter of 2011 indicate Adelaide’s stability and that despite the figures being down somewhat from the last quarter of 2010, house prices look to be holding.
Furthermore, values in country South Australian also showed a moderate strengthening over the quarter, with the median house price rising 3.15 per cent from the fourth quarter of 2010. Greg Nybo said that such stability is reassuring for regional residential housing over the long term.
With these figures in mind, and with predictions that South Australia may be on the cusp of another mining boom, the state is definitely one to watch, both from an investment and home buyer perspective. Greg Nybo has said that the coupling of the RBA’s decision to keep interest rates on hold for another month with South Australia’s comparative affordability in both rural and metro areas should continue to keep interested buyers and investors returning to the South Australian market.
If you have any queries about real estate in South Australia, or in any location, please feel free to drop into one of the hundreds of CENTURY 21 offices around the country and talk to an agent today.