Market slow down reaches South Australia
Whilst median prices in South Australia remained steady in Q1 of 2011, it seems the Adelaide property market is only now feeling the effects of a slowdown in the housing market.
The median house price for metropolitan Adelaide decreased 1.1% to $402,500 over the June quarter. However it is not all bad news in the Adelaide property market. Although there was no positive growth for the quarter, the median house price has grown by 1.6% when compared to the same time last year. In addition, the median unit price for Adelaide held steady at $320,000.
Regional median house prices also experienced a similar decline of 1 per cent, falling to $260,000 for the June quarter. Whilst the median unit price for regional South Australia experienced the largest decline, falling by 5.7% to $175,000.
The flat market has also had an effect on vendors, with 10% fewer transactions occurring in Q2 this year versus the same time last year.
The current market reflects the tough economic conditions being felt locally and nationally. As the spring selling season approaches and rates remain on hold, we anticipate that more buyers will re-enter the South Australian market and by the end of the December quarter may well see the market’s performance improve and record growth in median prices.