"Surging House Prices in Adelaide"

Thanks Arjay, I like those figures :D

Does anyone no what sort of % increase would define a boom and what % would be classed as an upswing?
 
adelaide prices

is this the same list that was in the advertiser on sat ?

whilst the adelaide market is being talked up & i have confidence in good capital gains in the longer term these figures don't really tell the whole story:

i have been watching the adelaide market for some time now & have observed the following:

the main factor in maintaining rising prices within adelaide is a lack of supply. It is spring, traditionally the 'best' time to come on the market yet the number of home opens on the weekend is around 1000 (per the 'tiser). Last year this figure was about 1800. During the winter this figure was down to about 800.

If you look at many of the inner suburbs there will only be 1 or 2 houses for sale on any one weekend - thus for most residential buyers it's a case of take it or leave it - again looking at the stats & my own suburb, there was only 3 sold in the whole year & given the wide range of property available in the suburb the median is a pretty unreliable indicator of 'value'.

this is pretty much the case for alot of the inner suburbs - i suggest alot of the major growth is in the out of town areas - elizabeth etc

here's where i'm pessimistic, given the low supply, prices in the inner suburban areas should be running away, but they're not, indicating that either there just isn't the demand or they are fully valued.

i would suggest that there are probably a load of people who would really rather move but either can't find the property they are looking for, can't wear the costs of buying & selling or can't afford the step up. In these cases people are chosing to stay put & rennovate.

here's where things do get interesting - wages are continuing to rise, jobs are still plentiful & economic activity is growing - there will come a point when all this pent up demand (of deferred moves) will come onto the market in a burst of activity - as house values rise, people will feel richer & the extra equity will be funneled into taking the next step up the ladder & there will be a spiral of house price growth - i see a big indicator as being the price of units which are rising quite sharply and are not too far below that of housing (in the same suburb) - 2 bed unit $280k v 3 bed house $400k - i know where i'd rather be - i can only see this increase coming from owner occupiers since the rental return wouldn't be great for investors & potential for capital growth is very limited, it's just a cheap way of getting into a good suburb.

so whilst i'm not getting excited by the market just yet, i see that there is good reason to be optimistic.
 
Some very good points STB.

I also noticed the drop off in the number of sales in a lot of the subrubs, which is why not all the figures would necessarily be too accurate. Still, it's all generally positive.

You make a good point with units. A few weeks back I was having a look at a small group (5) of units in Ridgehaven. One was on the market listed for $170k+

When I got there the agent told me the guy in the unit next door had already bought it for over $200k (which annoyed me as I and quite a few other buyers went out there for the open even though it was already under contract, and he was letting everyone have a serious look around, even though they were wasting their time).

In that same group of units, they had 2 other sales this year as follows:

May '03:$128k
Apr '07:$166k
Jul '07:$175k
& now Oct '07: Between $200k-$210k

In the same suburb only in June '07 you had houses (big enough for subdivision if desired) selling for $250k and under.

I believe a lot of the price increases at the moment are as you mentioned, due to the lack of supply in the market. Having said that, bring on the real boom! :)
 
Good news for me:D , as i'm just about to buy my second IP in as many months. As long as the bank agrees. Salisbury North up 18.47% :D
 
Woohoo!

Hi all,
New here, so nice to ahem...meet you all.

I can't say that I agree with the numbers of houses for sale... we are constantly searching for property in Adelaide and haven't had any issues finding properties for sale in inner and outer suburbs.

Having said that, I have found that it's not so much the suburb, as far as availablility and sales, as the price.. the bottom / mid range is absolutely going off in Adelaide, while the top end is staying put or slowly going up.

It seems to be the speed in which they are selling! I just bought a new PPOR in Onkaparinga Hills (advertised Fri night, agent saw me through Mon morning, sold Tues. ) and sold my current PPOR in one day. For a very good price (IMO).

I have been attending opens with a mate constantly trying to get him one in the South, and offering up to twenty K above the asking price.. no subject sales... and missing out one after another.

Boom or upswing? I'm hoping for boom! :) But upswing is fitting for now.
 
Hi Lia, welcome to SS.

Same thing happened to me last month - put my house on the market less than a month ago on Tuesday morning, it sold Wednesday night and settles tomorrow. Assuming the price you are asking is on the mark and not greedy, properties seem to be selling quickly (in the low to mid range as you said - I haven't been following the higher priced property as closely).
 
Lovely to see.....the suburb we are trying to buy in just went down by 5%....joy !!!

I reckon that points to one of two things, either we added to the downward pressure by buying well - cup half full approach.....or we have no clue at picking winners and we are just about to take a bath - cup half empty reality. ;)
 
Dazzling said:
Lovely to see.....the suburb we are trying to buy in just went down by 5%....joy !!!

I reckon that points to one of two things, either we added to the downward pressure by buying well - cup half full approach.....or we have no clue at picking winners and we are just about to take a bath - cup half empty reality. ;)
Click to expand...

Dazzling you're not going to buy a residential property are you? :eek:
 
Lia Hayes said:
Having said that, I have found that it's not so much the suburb, as far as availability and sales, as the price.. the bottom / mid range is absolutely going off in Adelaide, while the top end is staying put or slowly going up.
Click to expand...

IMO this says it all and is my take on things at the moment too.
Buyers are outstripping supply but mainly in the FHO or higher yielding suburbs. There does seem to be some exceptions but gains in these "cheaper" suburbs are skyrocketing.

Have to wait and see if the growth bleeds out to the more affluent areas as investors cash in/refinance and upgrade.

All in all good news for all :) (except those FHO, my heart goes out to them:( ).

R:)
 
A few thoughts from the Adelaide market as a buyer looking in the mid-upper range (and has just bought)

All of this analysis relates to houses in the 400k-650k range... mostly in the inner north, east and south areas.

1) The winter months had an extreme lack of supply and caused prices to move as people who needed to buy, just bought what was there.

2) The market has gone very quiet in the last few weeks (as far as prices go), I think largely due to the spring increase in properties on market

3) relative to quality - I think prices have pulled back 5% in the last few months at this end of the market

The speculative frenzy seems to have gone out of the market for the moment...... I have recently purchased one that I didn't bother going to the auction for as I assumed it would reach mid-high 600k, we got it for low 6's a few weeks later.

Also went to an auction last week where I was convinced the house would reach 650k+ (and know they actually knocked back an offer of 640 a few weeks before auction).. house passed in with highest bid of 600k, sold later for 620k

So in this end of the market there are very mixed signals - maybe the WA speculators have moved to other pastures??

TJ
 
i concur with TJamesX - this is my feeling that the $450k - $600k inner suburban mkt isn't moving - my take is that it is out of the reach of first time buyers & classic mortgaged owner-occupier family country who could be under a bit of interest rates pressure at the moment - added to the -ve factors of high moving costs & lack of supply i just don't think this group of people are moving much at the moment

it's a bit too pricy for alot of investors & if they do have that cash available then a look at SS will tell you they aren't interested in adelaide - melbourne suburbs, country victoria, brisbane hinterlands & gold coast look favourite at present
 
auction last saturday

wow, wow, wow - i take back nearly everything i said in recent posts .... i went to an auction on saturday that blew me away - having just spoken about a lack of demand in the $450k-$600k inner suburb price range, i went to a corker of an auction on saturday - 3 bedder with pool (& we can debate for hours whether a pool is an incentive/disincentive to buy these days) - well presented, quiet street, no subdivide potential, good communications - a typical suburban family home.

We all locked in our bids - $450k, $480k, $500k - the auction went off - i reckon there must have been 6-8 separate bidders - final price $551k - phenomenal !

it's clear that the residential mkt has picked up & is off & running ...
 
singingtheblues said:
wow, wow, wow - i take back nearly everything i said in recent posts .... i went to an auction on saturday that blew me away - having just spoken about a lack of demand in the $450k-$600k inner suburb price range, i went to a corker of an auction on saturday - 3 bedder with pool (& we can debate for hours whether a pool is an incentive/disincentive to buy these days) - well presented, quiet street, no subdivide potential, good communications - a typical suburban family home.

We all locked in our bids - $450k, $480k, $500k - the auction went off - i reckon there must have been 6-8 separate bidders - final price $551k - phenomenal !

it's clear that the residential mkt has picked up & is off & running ...
Click to expand...

Who said the real estate market isn't volatile....

Trotted down to an auction near the house we just bought - fully expected sale price to be in the range 610-630... actual sale price 701k, asking price was 540k+

http://www.realestate.com.au/cgi-bi...header=&c=23623907&s=sa&snf=rbs&tm=1192421025

Also looked at auction results for weekend and was staggered when I saw this one sold for 706k (I expected around 560-590k, asking price was 500k+);

http://www.realestate.com.au/cgi-bi...header=&c=95812796&s=sa&snf=rbs&tm=1192421177

:confused: :confused:
 
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