$87k more than last year – SA home values up again

South Australia’s property sector continues to show its strength on the national stage, with a new report revealing SA’s median dwelling price is now $87,000 more than this time last year.

According to PropTrack’s April Home Price Index report, South Australian properties recorded the third and fourth highest growth for the quarter, with regional dwelling prices up 11.34 per cent over the past year, and metropolitan dwelling prices up 11.32 per cent over the past year.

The top two growths were achieved in Western Australia, with regional dwellings up 11.9 per cent and homes in metropolitan Perth up 11.53 per cent.

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Adelaide home prices rose 0.18 per cent month-on-month to a record high of $796,000 in March.

In its April 2024 report, PropTrack had Adelaide’s median dwelling value at $709,000, while the data group currently has regional South Australia’s median price at $476,000 – also a record high.

Report author Eleanor Creagh said the market had performed strongly in the face of economic challenges.

“Home prices across the country climbed in March, following a clear shift in market momentum triggered by the Reserve Bank’s February rate cut,” she said.

PropTrack senior economist Eleanor Creagh

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“February’s rate cut boosted borrowing capacities and buyer confidence, helping to reignite demand and reverse the small price declines seen in the months prior.

“National home prices continued their upward trend in March, building on February’s rebound. Market sentiment has improved and buyers who had delayed purchasing decisions due to the sustained higher interest rate environment are likely re-entering the market.”

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Adelaide’s house price has also reached a new high – up 0.2 per cent for the month and 11.32 per cent for the year to $$853,000 – while metropolitan units have increased 0.05 per cent over the past month and 11.28 per cent over the past 12 month to $596,000.

Since the start of the pandemic, March 2020, metropolitan Adelaide’s combined dwelling price has increased by 83.5 per cent, while regional homes have increased by 86.4 per cent.

This outstrips the growth experienced across the nation for the same period, with Australia’s combined capital city dwelling price up by 42.7 per cent, and Australia’s regional median up 63.1 per cent.

Home values are up across Adelaide. Picture: Brenton Edwards

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Harcourts Packham managing director James Packham said SA had been a star performer.

“When the prices ran out of control interstate people started turning their attention to South Australia as a primary market instead of a secondary market,” he said.

“I think it is a positive thing for homeowners that prices have continued to increase because a lot of people who purchased real estate over the past year or two felt conflicted because at that time they felt they were paying a high price, but the fact that the market has continued to increase has justified their decision to purchase when they did.”

Mr Packham said it remained to be seen if the market would stall in the lead up to the federal election, but he had no doubt it would bounce back immediately after the result was revealed.

“For some reason it causes some hesitation and resistance to commit to a purchase, but ultimately it doesn’t matter what the outcome is, the moment the election is over it passes like a wave and the market returns to normality,” he said.

James Packham of Harcourts Packham Property. Picture: Supplied

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According to the report, home values in the Barossa-Yorke-Mid North area have increased over the past 12 months by 14.25 per cent to a $491,000 median, while dwellings in Adelaide’s north and west regions have increased 13.45 per cent and 12.03 per cent respectively to medians of $693,000 and $855,000.

Ms Creagh said she expected prices to keep rising over the coming months, but that the rate of growth would likely be more modest than in recent years.

“With affordability still a major constraint, the impact of further rate cuts will be somewhat tempered,” she said.