Adelaide Suburbs Low Stock, Why?

A

ad5

I am currently looking to purchase a typical family sized home (not courtyard/townhouse) in the south west region of Adelaide, the suburbs one back from the esplanade suburbs (Glenelg down to Brighton). However there is literally nothing around. What is the explanation for this?

For example, there is one fairly large suburb that according to census data has a population of just 5000 and most properties (70%+) here are houses. There are currently only 2 houses on the market that are not under contract and its been that way for weeks. The ones shown under contact are old listings from last year. Realestate.com.au supply to demand trend is showing a 100% increase from late last year. I've noticed this for a few of Adelaide's suburbs.
 
Maybe because a lot of those houses are down from their peak price and nobody wants to sell?

I don't know glenelg prices that well
 
I think there are 1 maybe 2 full sized houses currently on the market in Glengowrie, in Warradale none north of train tracks, north brighton low as well west of Brighton road. Most stock is old, nothing new hitting the market.

Also odd to see Adelaide's auction clearance rates sit around 40-50% this year and jump to 87% this weekend. Clearly lack of supply.
 
I've also been looking in that area and yes it's very tightly held for obvious reasons. Westfield Marion, Brighton and Glenelg are all popular nexuses and the schools though they are starting to creak from the demand are still very popular. Ordinary houses west of Brighton Road start at $700k and I think people are sitting tight for another boom to nudge them into $1m territory.
 
Yeah its odd, plenty last year. Some this year, not like they are selling quick as some sit on the market for ages, more so little supply, which is annoying when you have plenty of boxes to tick in a property.
 
In some areas where you have a mix of old and new I've notice the old take longer to sell. Not sure why this is, but good for those buying old I would think.

This is one of those areas, so makes me think that perhaps some people are still holding off selling if they think their property will be sitting on the market.

Just a week ago the auction clearance rate was 46.4 - in line with what it's been.

I'd say not much has changed since last week. My own street hasn't had a house for sale in months yet before that there were quite a few in a flat market, in a very short space of time??
 
Always thought about something like it for good cap growth (coming in under the criteria and being a FHB).

Not so sure about yield in the med-short term (turing into an IP after living in for a year or two).

Should slide out of the exclusive period soon.
 
jim1964 said:
It will not get to the open market,IMHO.Inner city properties in this price range fly off the shelf.If anything its underpriced .
Click to expand...

Probably, just getting to the back end of the exclusive period.

In fact I'd look at it seriously now within the AHP if it was 10-15% larger.
 
ad5 said:
I am currently looking to purchase a typical family sized home (not courtyard/townhouse) in the south west region of Adelaide, the suburbs one back from the esplanade suburbs (Glenelg down to Brighton). However there is literally nothing around. What is the explanation for this?

For example, there is one fairly large suburb that according to census data has a population of just 5000 and most properties (70%+) here are houses. There are currently only 2 houses on the market that are not under contract and its been that way for weeks. The ones shown under contact are old listings from last year. Realestate.com.au supply to demand trend is showing a 100% increase from late last year. I've noticed this for a few of Adelaide's suburbs.
Click to expand...

Correct me if I'm wrong as I don't have the latest mag with me but I'm sure I saw in the latest API mag that Brighton had gone down 38% in last ??? If this is correct, then no wonder no one is putting their properties on the market.
 
arriety said:
Correct me if I'm wrong as I don't have the latest mag with me but I'm sure I saw in the latest API mag that Brighton had gone down 38% in last ??? If this is correct, then no wonder no one is putting their properties on the market.
Click to expand...

Hi arriety, you know better than that! 38% down?? ...raw data... :confused:
 
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