Regional SA home prices rose to a new peak in April, according to the PropTrack Home Price Index released last week.
The report found that home prices in regional SA rose 0.03% month-on-month and 11.61% over the past year, the fourth strongest annual growth of all markets.
Adelaide home prices rose 0.55% month-on-month in April to a new peak, with the South Australia capital remaining one of the country’s top performing markets, with home prices up 13.99% year-on-year.
The comparative affordability of the city’s homes has seen prices defy the significant increase in interest rates since May 2022.
PropTrack’s Eleanor Creagh said low stock levels were also intensifying competition, with home prices in Adelaide rising at a fast pace over the past year.
“National home prices hit a new record in April, as strong buyer demand has outpaced the rise in new listings this year. While demand remains robust, the pace of price growth is beginning to slow,” she said.
“The stable interest rate environment has been a driver of confidence among buyers and sellers. Higher than expected inflation in the March quarter has pushed back the expected timing of rate cuts but most expect the next move for interest rates will be down although the timing remains uncertain.
“Strong population growth, tight rental markets, low unemployment and home equity gains are stimulating housing demand. Meanwhile, the supply side of the housing market has fallen short in responding to substantial demand. Building activity is at decade low levels, exacerbating the housing supply shortage.
“Despite some easing in population growth, this mismatch between supply and demand is expected to persist in mitigating the downward effects of affordability challenges and a decelerating economy.
As a result, prices are expected to remain on the rise in the months ahead.”
Key findings from the report:
• Regional SA home prices rose by a slight 0.03% over the past month to reach a new peak.
• Regional SA home prices now sit 11.61% above April 2023 levels, making it the fourth best performing market in the country.
• Since March 2020, home prices in regional SA (+67.1%) and Adelaide (+66.2%) have surged to record the respective second and third strongest increase of all markets.
• Adelaide home prices rose 0.55% month-on-month to a new peak, with the city’s comparative affordability and low stock levels driving the fast pace of growth.
• Home prices are up 13.99% annually, making Adelaide one of the country’s top performing markets.
