Adelaide’s property market was much like a jigsaw puzzle this past quarter; it fit together but required a lot of effort to do so. With a bottle neck effect brought about by the incredibly low stock levels that were 13% lower than the same equivalent month to month from what was already a low level last year, there was very little stock to offer. This created a dilemma for vendors who had made the decision to sell yet couldn’t find anywhere to buy, and were therefore reluctant to commit without any surety of somewhere to go. This developing trend of the need to sell as well as buy will likely continue moving forward. From a Buyers Agent perspective, this presents the opportunity to put our skills to work with the added sales advisory role. Though may create a catch 22 in this market of low stock levels. For this quarter, this placed clients who did not have to sell to buy in a good position competitively on terms, with a clean and streamlined offer and contract process.
The primary difference between this third quarter and last years was the swing in poor quality or compromised assets selling well due to the FOMO effect of the bull market to grinding to a complete halt. While interest rates certainly created uncertainty in buyer sentiment, they did not have the same dramatic effect as was felt by the Sydney/Melbourne market. With a less developed growth cycle, our market still showed a capacity to absorb interest rates and remain competitively affordable.
The complexities of this current market meant that the only properties to perform well fell into a very narrow category of good quality, nothing compromised, ready to move into, doesn’t need any work. Simple, clean. With building and labour costs unstable, demand was high for already renovated or extended properties. This meant that there was, and is looking ahead, value to be found for homebuyers willing to compromise on the condition of the property until renovations costs become more realistic. This is particularly opportune for investors not looking to live in, rather to hold as is for the unseeable future, with only minor cosmetic adjustments to lease to tenants.
- Charles Sturt
- City of Prospect
- Port Adelaide/Enfield
The developing trend of both buying and selling in unison will likely continue throughout the next quarter. With no clear spring uptick in the listings in regards to volume, low stock levels will keep comparative demand high, which will in turn keep prices on the up. Expect to see prices remain steady if not still growing for good quality assets.
Get in touch with Sharon to find out more about the Adelaide property market, or make an appointment to discuss your requirements and see how we can help you get into your ideal home sooner.
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The first step in your property journey, whether it be buying or selling, is gaining clarity on your situation.