It’s been one of the most remarkable years in the Adelaide real estate market for a long time.
Now, at the end of the financial year, we thought we’d share our thoughts about the previous 12 months, and what it might mean down the track.
As buyers returned, so did confidence
After almost a year of uncertainty brought about by the pandemic, buyers saw light at the end of the tunnel at the end of 2020. Many interstate buyers returned to Adelaide around Christmas 2020 and were able to retain their employment by working remotely. This meant they were able to borrow money to purchase property immediately, without having to wait the usual 3 to 6 months to meet banking conditions when starting a new job.
Low interest means higher prices
With record low interest rates and banks offering long term fixed loans at record breaking lows, buyers were happy to increase their loans, which also pushed up prices.
FOMO fuels the frenzy
This combination of low interest rates and high buyer confidence quickly depleted the existing supply of homes on the market. New homes entering the market had record levels of interest and attendees at open inspections. This fuelled competition and it became the norm for buyers to line up and make offers above the advertised price range. Fear of missing out added to the huge increase in values we have seen over the last 6-9 months.
When will it end?
Our opinion is the demand for homes will continue as supply typically drops between now and spring, when more homes will hit the market. If interest rates increase and overseas travel commences, we predict a flattening of buyer demand.
A big year for Boffo
The Boffo rebrand was received better than we could have imagined. The older brand was dated and it was evident clients were craving a quality, fresh and on-trend brand to represent their homes in the sales campaign. Our year as Boffo has been our biggest ever, as we’ve helped over 600 clients move home.
Sellers wanting a piece of the auction
With strong buyer demand, sellers were preferring auctions over the older ‘For Sale’ method. Fortunately, our in-house auctioneer Mark Fricker is one of the most experienced in the country and we saw some fantastic results which will be talked about for years to come.
Pockets of gold
When migration from overseas commences again (potentially next year), we will be likely to see another mini-cycle of strong buyer demand in certain pockets of Adelaide.
A market that's still strong
Although the level of attendees at open inspections has dropped slightly compared to earlier in the year, we are still seeing a 90% auction clearance rate most weekends and properties on average selling within two weeks of hitting the market.