It has been an interesting 12 months in real estate...
We have seen rises and slight falls in property values, record house prices set, interest rate rises and some good news at last for first home buyers.
After a record post-pandemic boom, property values continued to soar Australia-wide early in the 2022/2023 financial year but the bubble popped soon after.
By December 2022 Adelaide was the only capital city in Australia to finish the year with record high price growth. In March 2023 Adelaide and Perth were the only capital cities to record growth of 5.6% and 6.1% respectively.
By May however, every capital city except Darwin once again recorded price rises during the previous three months, showing collective growth of 1.34% across the nation.
As we await the results of the June quarter, experts predict that the South Australian property market will continue to remain steady in the face of national price fluctuations.
RBA Interest Rate Rises
There is no doubt it has been a tough year for mortgage holders. The RBA has increased the cash rate as many as twelve times since May 2022, and it now sits at 4.10%.
Experts predict more pain for mortgage holders in July and/or August 2023, but relief may be in sight as economists suggest mortgage interest rates could begin to fall during 2024. Fingers crossed!
Relief for South Australian First Home Buyers
The recent release of the State Budget brings welcome changes to help South Australian first home buyers get their foot in the door sooner. Changes include:
- Zero stamp duty for first home buyers purchasing a new home valued up to $650,000 or vacant land valued up to $400,000 when purchased to build a new home.
- Eligibility for the existing $15,000 First Home Owner Grant has been expanded to include to new homes valued up to $650,000.
- Eligible first home buyers who purchase a new property can apply for a 2% deposit home loan through HomeStart.
Our real estate agents in the north east suburbs of Adelaide can help first home buyers with new homes and land in locations continuing to see good growth.
South Australian Rental Property Market
High demand across the rental property market is set to continue, which is good news for property investors with rental vacancy rates at an all time low.
Our Property Management team
remains as busy as ever keeping all our landlords and tenants happy, but if you’re thinking of investing and using the best property management services in Adelaide, they’d love to hear from you!
What Do We Predict For Real Estate in 2023/2024?
Perhaps we won’t hold our breath, but experts are expecting interest rates to begin to fall during 2024, bringing relief to many South Australian home owners and possibly putting a little more movement back into the property market.
Changes to the laws affecting South Australian first home buyers may see more activity for new home sales and house and land packages, which is good news for developers.
Some economists suggest the current national slump is temporary, and we could see a rise in property prices as much as 5% during 2024. We hope so!
(Property insights and data provided by Domain Property Group)
