Looking for the current median house price in Adelaide? You’ve probably noticed the general downtrend in the Australia property market lately—it’s been a huge topic in the media, creating a lot of buzz about what real estate will look like in 2022.
There have been big changes throughout the country. On one side are the capital cities like Sydney and Melbourne whose dwelling values have been falling, and on the other side are Adelaide and Brisbane, who are recording continued growth. Even the worst suburbs in Adelaide are experiencing some growth.
So let’s answer some burning questions about Adelaide’s median house prices, the Adelaide property market and what’s happening in the Aussie real estate market.
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What’s the median house price in Adelaide?
According to Corelogic data, the current average house price in Adelaide is $748,000. This is an increase of 11.73% over the past year.
The median rent price in Adelaide is $483 per week and the average rental yield at 3.4%.
What is the median house price in South Australia?
In the state of South Australia, the current median house price is $475,000. About 33,000 houses have been sold over the past year, spending an average of 62 days on the market before being sold—data as reported from Corelogic.
That’s slowly rising, especially with the most expensive house in Adelaide listed last year at $12 million.
Are house prices dropping in Adelaide?
Adelaide appears to be outperforming in the housing market. With the median house price at $748,000, it continues to grow despite the slowing pace of other capital cities.
The city wasn’t as quick to grow initially, but once residential property prices began to rise, they increased continually.
The supply of homes coming to the market is low which means competition is solid. So much so that earlier this month, Corelogic data reported 40% fewer houses coming to market than the last five-year average.
At the same time, sales are booming, with a 53% increase from the previous five-year average.
What is happening with the property market in Australia?
In short, a lot has been happening with the property market in Australia. Let’s break down the factors influencing these changes.
Rising mortgage rates
The RBA raised the cash rates for the third time in a row to 1.35% last week and they’ve signalled it won’t stop there. This decision comes from a need to cool the impact of inflation and the housing market boom.
To put it simply, interest rate hikes make it more expensive to borrow money from lenders. However, it also means more returns on savings as well as your super.
When it costs more to get a loan, the demand is expected to slow. Fewer people are inclined to buy their first home, for example, if the interest rates are higher than they can afford.
Rising inflation
Australia isn’t experiencing as heavy an impact of inflation as in some parts of the world. Currently sitting at around 5%, it hasn’t reach the massive jolts seen in Turkey (54%), Sri Lanka (55%) or Brazil (125).
The fears around high inflation are linked to the daunting term, recession. If inflation is high that means that the cost of goods is higher. If wages aren’t increased enough for people to afford these higher rates, it leads to a big drop in consumption.
All this uncertainty in Australia right now is affecting the real estate market and therefore property values. This is a big change from last year when interest rates were low and there was a buying frenzy.
But this doesn’t mean that properties aren’t selling, just that they’re selling at a lower price.
Overall buyer sentiment
With more of the media covering the downturn in the market, buyers questioning affordability are reluctant to enter the market or purchase another property. This lessens the demand for real estate and general enthusiasm towards the big Australian dream of owning your own home.
Is Adelaide property a good investment?
One of the best parts about Adelaide is that it offers the same kind of lifestyle you’ll find in other capital cities like Brisbane, without the hefty price tag.
Things like transport and accessibility are great, and you’re not far from natural attractions like vineyards and national parks.
Historically, Adelaide has had a strong performing price growth. The rise in house prices and in demand has been steady. Even with the onset of the pandemic in 2020, which saw the Australian house prices slow down in other parts of Australia, Adelaide remained steady.
This applies to the current property value in the city compared to the rest of the country. While Sydney and Melbourne are seeing residential property prices drop, Adelaide is less volatile which makes it a solid choice for property investment.
If you’re looking for cheap houses for sale in the Adelaide suburbs as an investment, check out areas like Salisbury and Elizabeth North.
Houses for sale in Adelaide
To give you an idea of what’s on offer around the median house price in Adelaide, we’ve rounded up some of the best properties on the market.
Quaint CBD 2-bedder
Modern city apartment
Elegant townhouse
French-inspired CBD unit
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