Budget Adelaide market tipped for subdued 2% annual growth: Domain Group

The Adelaide housing market recorded another year of solid activity over 2014 with the median house price increasing by 4.6%, according to the Domain Group senior economist, Andrew Wilson.

This is despite the continued underperformance of the local economy. Up from the 3.4% recorded over 2013, this growth reflects a market finding its feet again after a prolonged period of subdued buyer activity.

Source: Domain Group

Buyer activity in the Adelaide housing market has centred on mid to upper price ranges, particularly in the established western and eastern suburban areas.

Lower interest rates will fuel confidence in aspirational buyers in these areas again through 2015.

The budget markets to the north and south will remain subdued as high unemployment and concerns over job security constrains growth.

Source: Domain Group

The Adelaide market is set for another solid year in 2015 with prices growth likely to be similar to those recorded over the past two years.

The median house price in Adelaide is forecast to increase again by between 3 and 5% over the year 

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Source: Domain Group