Adelaide property listings plunge as buyers face new challenge

Home buyers are still struggling for options in South Australia’s sluggish real estate market, with new data showing fewer properties now listed for sale than there were a year ago.

REA Group’s latest Listings Report has revealed the number of new Adelaide property listings to hit the market in February was down 7.6 per cent compared with the same time last year – more than double the national decline across capital cities of 3.4 per cent.

Regional SA fared marginally better, with new listings down 5.4 per cent in the past year, compared to a national drop in the regions of 3.3 per cent.

The decline in regional SA listings was buffered by an increase in properties hitting the market for the first time last month – up 19.6 per cent compared to properties that were newly listed in January.

Adelaide’s month-on-month listings were up 10.9 per cent, the report showed.

In terms of overall listings – properties available for sale last month irrespective of when they were first advertised – Adelaide was down 9.9 per cent in February compared to the same time last year, while regional SA slumped 10.1 per cent.

REA Group senior economist Angus Moore.

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REA Group senior economist Angus Moore said lack of housing continued to drive up sales prices, with Adelaide recording a 15 per cent increase in property prices in the past year.

While property availability would remain tight this coming year, Mr Moore expected further price hikes would be minimal.

“We are expecting the (price) growth will slow down for Adelaide this year and the reason for that is rates have risen and are likely to rise further, and that will reduce buying capacity,” he said.

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“But it is still a challenging market for buyers in Adelaide – although it’s not just Adelaide, we are seeing relatively similar tight conditions in other areas like Perth and Brisbane.”

Earlier this month, it was revealed Adelaide had become one of Australia’s least affordable capitals, with the median house price now topping more than $1m.

Across the state, more than 60 suburbs and towns are expected to soon cross the seven-figure threshold.

REISA CEO Andrea Heading. Supplied

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Real Estate Institute of South Australia chief executive officer Andrea Heading said there were “pockets” of listings still available for under $1m, including at Mount Barker.

There were also properties available at available at Victor Harbor and surrounding areas, such as McCracken and Goolwa, and the Barossa Valley, she said.

“I’m not sure we could call it affordable but there are properties available under the $1m mark,” Ms Heading said.

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She said with property prices continuing to rise, home buyers with the means to purchase should not delay.

“We are always asked when is the time to buy – well the time to buy is now because, otherwise, it will be that thing of ‘Oh God, I should have bought five years ago’,” she said.

– by Lauren Ahwan