House prices rose 15.6% nationally. Here’s what to expect for Adelaide Hills real estate in 2021-22.
CoreLogic has released data that shows just how incredible this year’s growth was – and sheds light on what we can expect for the year ahead.
Australia’s dwelling values finished the financial year 13.5% higher (than the 2020-21 period). Nationally, home values rose 1.9% in June. House values grew 15.6% and units increased by 6.8%. Real estate in the Adelaide Hills grew exponentially, too.
The CBD and the Adelaide Hills region
In June alone Adelaide property values increased 1.6%. For the quarter, 5.6% and annually, 13.9% which takes the total growth to 18.5% for Adelaide. Mount Barker’s houses are not too far off that, sitting at a strong 15% annual growth rate. That’s over 1% growth every month.
In our real estate agency, we’ve long said Mount Barker is a plotting market and a safe place to invest in – with no sweeping rises or falls. This year, however, we’ve seen an exceptional gain.
So, where is all this going?
Of course, we can’t expect to see another 15% annual increase in Mount Barker or 18+% in Adelaide. Wages and incomes certainly aren’t growing in parallel. There’s an old saying: ‘You only really know after the event when you’ve hit the true peak of a market.’ However, in our team, we’re optimistic, as the real estate market hasn’t had this level of price growth before.
While it doesn’t feel like it, there is a higher percentage of new listings. In fact, an increase of 8.9% of new real estate stock than this time 12 months ago.
CoreLogic monitors sales to new listings ratio to determine supply and demand performance. Data shows this is hovering at around 1.1% nationally. In Mount Barker in the last 12 months, there’s been 352 property sales (an increase of 11.97%) and 318 new listings. That’s an 8.9% increase in new stock hitting the market from this time last year. Yet, because the demand is strong, our sales to new listings ratio is 1.1%. In other words, it remains a seller’s market.
Current selling time is under 14 days.
We’re not seeing as much sticky stock – the houses for sale in the Adelaide Hills typically hang around on the market for months because of oversupply or inflated prices. So, while there’s more listings than we’ve seen traditionally at this time of year, properties are selling in under two weeks.
And because there’s a lack of opportunity for new buyers, it’s stopping people from selling. In our real estate agency, we’re currently selling about 50% of properties off-market, simply because sellers prefer that level of control in the current market.
With all this said, now is an incredible time for those with a property for sale in the Adelaide Hills, whether selling or renting it out. Our team is happy to guide you through the process, no matter where you’re at in your real estate journey. Get in touch with us today.
