Home prices have hit new highs with Adelaide market remaining strong

“Dwelling prices in capital cities increased by 0.4 per cent, and are now 7.64 per cent above prices in March 2023, and a shocking 35.2 per cent higher than in March 2020.

Year-to-date, the biggest regional increases have been on homes in Perth (18.62 per cent), Adelaide (13.47 per cent), and homes in South Australia outside of Adelaide (12.81 per cent).

Throughout the past year smaller capitals have outperformed, and this trend persisted into March 2024.

Choice for buyers remains much more limited in Brisbane, Adelaide, and Perth, heightening competition, with limited housing supply relative to demand seeing prices continue to rise at a faster pace.

Australia’s population is experiencing rapid growth which is driving up the need for more housing. Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.

This imbalance between supply and demand has offset the higher interest rate environment and deterioration in affordability and is expected to continue to do so.

As a result, prices are expected to lift further in the months ahead, particularly while the expectation remains that interest rates will move lower in the second half of 2024.”

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