Adelaide house market at five o'clock and in a state of limbo: Experts

The Adelaide housing market appears to be in a state of limbo, though annualised data from RP Data shows that house price falls accelerated during the final six months of 2011.

Louis Christopher describes the Adelaide market (both houses and units) as “neither falling nor recovering”.

WBP believes the city’s market still has a way to go before bottoming out but says that house prices appear to be stabilising in some areas, while demand is weak in others.

Charles Tarbey places Adelaide close to the bottom of the cycle and says that while there is a higher level of housing stock at the start of 2012 than at the start of 2011, these levels are steadily declining. 

“It may only require a pick-up in global confidence for activity to increase. Signs of increasing activity can be seen, for example, in attendance levels at open for inspections,” he says.

Time: Five o'clock

CBRE says affordability will be the key issue for the Adelaide market during the next 12 to 18 months despite the recent house price correction. CBRE says a recovery in the Adelaide housing market is heavily tied to further interest rate cuts and a reduction in global uncertainty over the eurozone, which is encouraging buyer caution.

According to the Real Estate Institute of South Australia, Adelaide vacancies sit around the 3.1% level, just above the equilibrium figure of 3% – indicating a slight oversupply of rental accommodation.

Population: 1.2 million

Median house price: $390,000 

House price growth in February 2012: 1.4% 

Annual house price growth to December 2011: -5.3% 

Annual house price growth to July 2011: -3.9% 

Rental yield: 4.2% 

To find out where your capital city's house or unit market is on the property clock, download our free eBook.

Property Observer has also analysed the Adelaide unit market on the property clock.

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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