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Adelaide housing market update [video] | March 2024 - featured image
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Adelaide housing market update [video] | March 2024

Housing values posted a broad-based rise in February, with CoreLogic's National Home Value Index up 0.6%.

This was a 20 basis point acceleration from the 0.4% increase seen in January and the strongest monthly gain since October last year.

Each of the capital cities and rest-of-state regions recorded a lift in values over the month, except Hobart, where the market was down 0.3%.

Adelaide dwelling values are up 1.1% in February, continuing a strong run of growth, where the market has recorded a monthly change of more than 1% through nine of the past 10 months.

Adelaide Housing Market Update | March 2024

The ongoing rise in values reflects a persistent imbalance between supply and demand, which varies in magnitude across the cities and regions.

The unit market has recorded stronger gains over both the rolling quarter and the past 12 months, which may be an indication that housing affordability is pushing more demand towards higher density options, where values are around $285,000 lower based on the median house and unit value.

Potentially, we're starting to see some early signs of a boost to housing confidence, as inflation eases and expectations for a rate cut, or cuts, later this year, firm up.

The re-acceleration and value growth have been accompanied by a bounce back in auction clearance rates and in consumer sentiment.

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Adelaide has seen the most substantial rise in dwelling values across the capital cities since the start of Covid, with the market up 55.6%.

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Auction results and sentiment have both shown a historically strong relationship with housing trends.

The rise in clearance rates from the mid-50% range late last year to the high 60% range in February points to a better fit between buyer and seller pricing expectations.

A rise in sentiment suggests that households will have a better ability to make decisions around large financial commitments, like a property purchase.

Growth in rental values has also re-accelerated through early 2024, with a monthly pace of change rising to 0.9% in February, the highest reading since March last year.

This re-acceleration also saw the rolling quarterly change in rents rise to 2.4%, the highest since May last year.

The pickup in rents is mostly a seasonal phenomenon, with the first quarter of the year historically showing an accelerating trend.

However, there's also been a pickup in the annual growth trend for rents, with the national rental index up from a recent low of 8.1% in October last year to 8.5% over the 12 months ending February.

You may also want to read:

National Housing Market Update [Video] 

Perth Housing Market Update [Video]

Sydney Housing Market Update [Video]

Brisbane Housing Market Update [Video]

Melbourne Housing Market Update [Video]

About Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au
6 comments

I was thinking of selling my older property I bought in 2019 for a new cheaper appartment in a nice location closer to work and using the sales differences to prepare for the future 2 or 3 years. I wonder if this makes sense but in some ways I would ...Read full version

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Invest in real estate for your child's future

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