Market downturn an opportunity for first home buyers
Adelaide’s residential property prices dropped slightly over the three months to March. according to a new report.
But our market is still fairing better than those in most other capital cities.
CoreLogic’s National Home Value Index Report for March, which was released today, shows Adelaide house prices dropped half a per cent in the three months to the end of March.
This compared to a 2.7 per cent price drop across the combined capitals nationally.
Darwin, Melbourne and Sydney were hardest hit, with drops of 3.9 per cent, 3.4 per cent and 3.2 per cent respectively.
Hobart was the only market to record a rise during the three-month time frame, while Canberra’s market did not move at all.
CoreLogic Head of Research Tim Lawless described Adelaide’s market, which also dropped by 0.2 per cent over the past month, as “essentially relatively flat”.
But he acknowledged the drop in house prices was something new for Adelaide.
“We haven’t seen Adelaide recording negative results for quite some time,” Mr Lawless said.
“A few years ago, values were rising around three per cent but that slowed to less than one per cent per year.”
Mr Lawless described Adelaide as “still really affordable”.
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Our median house price sits at $460,673 and our median unit price is $325,628, according to the CoreLogic report.
This compares to Sydney’s median house price of $880,594 and Melbourne’s $718,443.
Looking at Australia’s national downturn of 2.3 per cent over the quarter, Mr Lawless said the country’s largest declines came form the top quarter of the market in Sydney and Melbourne.
“Most other cities are recording less variance between the upper and lower quartiles of the market,” he said.
The Sydney and Melbourne markets were also experiencing “a surge in first home buyers funnelling demand toward the more affordable range or properties”.
Mr Lawless said the national housing market had also been affected by “more cautious lending policies for borrowers”.
But improved housing affordability could be “the silver lining to the downturn,” he said.