Adelaide clearance rates are finally UP

[Erica]

I'm having a quiet day at work, so thought I'd share my thoughts on the Adelaide market; I'm feeling positive that the next 12 months will be good for CG, and about time, after the last few years of flat and slightly backwards growth, with current record low interest rates and the last quarter median reported for Adelaide metropolitan slightly up, however still below the peak median reached in June of 2010, I'm thinking the upswing of the cycle has now begun.

Adelaide adjusted clearance rates for the past 6 months
9th Sep 73%
2nd Sep 73%
25th Aug 69%
18th Aug 70%
11th Aug 77%
4th Aug 59%
28th July 47%
21st July 54%
14th July 56%
7th July 58%
30th June 57%
23rd June 46%
16th June 42%
2nd June 58%
26th may 64%
19th May 43%
12th May 62%
5th May 52%
28th April 49%
21st April 43%
14th April 40%
7th April 53%
31st march 55%
24th March 52%
10th March 59%
3rd March 53%
(source www.reisa.com.au)


I'd love to hear the thoughts of other investors focusing on Adelaide...

 

[ad5]

Reading Adelaide auction clearance rates can be misleading. with such low auction volumes the clearance rate is volatile, typically Adelaide has 50-80 auctions per week where as Melbourne is 900+ and easier to read.

SA's economy is struggling and has the highest unemployment of the mainland states. The latest SQM research prediction of around 5% in 2014 looks reasonable to me. http://www.macrobusiness.com.au/2013/09/sqm-predicts-rapid-sydney-house-price-inflation/

 

[ad5]

Speaking of volatility:

15th Sep 58%
(source www.reisa.com.au)