Demand for Adelaide homes hits ‘crazy’ levels with buyers desperate to not miss out

Adelaide property prices are surging at a faster rate than every other mainland state capital as buyers seek to make the most of record-low interest rates.

The city’s combined median house and unit prices jumped 7.3 per cent in the past 12 months, to $478,587.

That was nearly three times the 2.6 per cent combined rate for all capital cities, according to Core Logic’s latest Hedonic Home Value report.

Adelaide buyers are racing to secure properties, which is driving up house prices and the cost of renting.

LJ Hooker Kensington/Unley agent Chrissy Esau recently sold a home in Halifax St, city, prior to auction after her vendors accepted an offer more than 20 per cent above their reserve.

She said some hopeful buyers had travelled as far as Crystal Brook and Kingston SE to inspect it.

“The market is crazy hot at the moment,” Ms Esau said.

“So many people are worried about missing out and not getting on the merry-go-round that they’re all prepared to pay crazy prices, they’re not waiting for auctions and they’re not waiting for other people to catch up.

“They’re getting organised, they’re getting out there on the first day, they’re taking offer forms and submitting them within hours of the open closing.”

According to the report, Adelaide’s houses values were up 3.1 per cent for the past quarter and 7.6 per cent on this time last year.

Metro units were also strong performers – up 5.2 per cent for the year.

Core Logic’s research director Tim Lawless said strong property growth was visible in every capital city and had been fuelled by a combination of record-low mortgage rates, government incentives, improving economic conditions and fewer homes being on the market.

Mr Lawless said Australia hadn’t experienced widespread growth like this in more than a decade.

“The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fuelled buyer demand.” However he warned the reduction of government incentives, such as JobKeeper, would be a significant headwind for the property market.

Regionally, SA homes were up 6.5 per cent for the quarter and 11.5 per cent on this time last year.

Meanwhile, a separate Core­Logic report showed Adelaide’s auction clearance rate currently sits at 82.5 per cent, with houses selling on average within 40 days.

Buyers who shop around for the best interest rates can get fixed loans for as low as 1.99 per cent and variable rates of about 2.5 per cent.

The Advertiser last month reported that real estate agents were experiencing their biggest demand for rental properties in more than a decade.

They said they were receiving hundreds of inquiries per home because fewer people were leaving the sate.

Source