House price growth in Adelaide is showing its first signs of easing, according to Real Estate Institute of SA (REISA) figures, which reveal that the quarterly growth rate has slipped.
The median house price for metropolitan Adelaide is now $362,500, according to REISA March-quarter data, which is a quarterly rise of just 2.11% – but still represents a jump of 19.4% from 12 months ago.
REISA President Robin Turner said the slower rate of quarterly growth was good news for people trying to enter the market.
"The median house price has risen again but at a much slower rate, which indicates relief is on the way for aspiring homebuyers," Turner said.
"These figures reflect the anecdotal evidence we've been hearing from agents out in the field, who are saying sale volume and prices have started to ease as a result of the two interest rate rises earlier this year."
State-wide statistics showed a similar trend, with the median increasing by 3.13% over the past three months and 18.07% over the past year to $330,000.
Turner said that, while yearly growth was still quite high, the metropolitan market had started to balance out after experiencing unsustainable rates of growth last year.
"The positive thing about Adelaide, though, is that for existing homeowners there is rarely any backwards movement, so their assets are still in good shape for long-term growth," he said.
"Affordable areas are still going well and will sustain the property market over the next few months."
Turner named Christies Beach – which was named in Your Investment Property's May issue listing of 47 suburb hotspots – as a standout performer, after the suburb experienced 60.17% growth in sale price over the 12 months to March, to record a median price of $374,000.
"The affordability of Rosewater also meant this suburb has been an attractive option for buyers, with its median house price growing by 47.06% to $350,000," Turner said.
"Another opportunity for first homebuyers is to start out with a unit or apartment. The median price for units and apartments in metropolitan Adelaide is now $274,500."
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