Bronte Manuel's Adelaide market update for January

The Adelaide property market started 2021 just like it finished 2020 – with eager buyers creating extremely strong competition for quality homes.

As a result, Adelaide dwelling values continue to surge beyond already record-high levels.

The latest findings from property market analyst Core Logic showed that Adelaide property prices increased by 0.9 per cent in January. That’s on the back of a 3.3 per cent lift for the quarter and a 6.5 per cent increase over the past 12 months.

By comparison, the value of capital-city homes across Australia has risen by 1.7 per cent over the past year, with Melbourne (-2.1%) the only city to register a decline.

Our January results at Toop&Toop painted a similarly positive picture at a local level.

While we conducted fewer property viewings during a typically quieter January, more than 1600 buyers still inspected our homes, with almost 30 per cent of those new to the market.

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Digital data was also steady, with homes on the Toop website generating 113,624 views and interest from interstate buyers remaining particularly buoyant.

That physical and virtual traffic translated to 30 sales for the month, with an impressive average price of $1.13 million and several properties achieving results well beyond vendor expectations.

It’s a story we told often during 2020 and there’s no indication of imminent change.

Adelaide property continues to perform strongly across all market segments, too. The upper quartile achieved the highest growth rate in value at 3.4 per cent, compared with 3.3 and 3.1 per cent increases for the middle and lower segments respectively.

Homes here are also selling more quickly. The median days on market in Adelaide in January dropped to 37, compared with 43 days in January 2020.

While the market is looking increasingly favourable for sellers, many vendors remain hesitant to put their home on the market.

In the 28 days to January 31, there were 131,657 properties listed nationally, which is 28.3 per cent below the five-year average for this time of year.

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Listing levels in Adelaide are particularly low.

Total listings are down 35 per cent compared with the equivalent period last year, while the volume of new homes entering the market is also down 11.2 per cent.

That scenario continues to create heightened demand for those properties that do match a buyer’s search criteria, driving up prices for the right homes.

With the official cash rate holding at 0.1 per cent through January and the RBA forecasting that the target inflation rate needed to lift rates would not occur in 2021, there’s an increasing likelihood that property values will continue to rise as even more buyers enter the market.

As mainstream media continues to highlight the strength of the market, we could see more moderately motivated vendors opting to list their properties with the hope of achieving a truly premium result.

Bronte Manuel
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