November 18, 2021
The latest Adelaide real estate market update, with Bronte Manuel
Predictions of a softening Adelaide property market are yet to eventuate, with a string of outstanding sales results in recent weeks.
At TOOP+TOOP, we continued to experience extraordinary demand at all price points over the past month, though the higher end of the market was particularly strong.
The total value of properties sold by us for the month topped $106 million, the result of 77 homes changing hands at an average price of $1.38 million.
That included 41 properties selling for more than $1m, 20 reaching the $2m mark and five topping $3m, including one property that fetched $4.955m.
While, as expected, there has been a spike in new listings at the peak of spring, the volume of sales has offset any shift in the supply-demand balance.
Put simply, there are still more buyers than properties.
Due to the publicity around market conditions, we’ve found some vendors have elevated price expectations but most of those expectations are still being met – and often exceeded.
We’ve had a number of scenarios over the past month where properties have sold for several hundred thousand dollars above what we’d already considered to be a bullish price point.
The most recent findings from property market analyst CoreLogic highlights the extremely favourable selling conditions.
Their data shows Adelaide dwelling values have risen by 20.1 per cent over the past year, with a quarterly increase of 5.9 per cent and 2 per cent increase for the month.
That compares with national capital-city growth rates of 20.8 per cent annually and 4.4 per cent for the quarter.
A breakdown of monthly sales underlines the demand for premium homes, with the upper quartile of Adelaide home values registering a three-month growth rate of 6.6 per cent.
The volume of sales across all price brackets rose sharply, too, with 30.7 per cent more transactions completed for the month compared with the same time last year.
Listing levels here are undoubtedly improving, with 27.3 per cent more homes entering the market last month compared with 12 months ago.
However, there are still almost 20 per cent fewer properties for sale in Adelaide in total compared with the equivalent period in 2020. This can be almost entirely attributed to the strong absorption from sales.
Given the buoyancy of the market, fuelled by fierce buyer competition, we’re expecting significant activity right up to Christmas which will almost certainly flow through to the first weeks of 2022.