Property values across Adelaide experienced a small (0.1 per cent) drop in the three months to February, 2019, according CoreLogic’s February Home Value Index report.
But the decline was well below the 3.3 per cent drop reported by Australia’s combined capital cities over that time frame.
And taking a slightly bigger picture, looking at Adelaide’s house prices over the past year, the report indicates growth of 1 per cent while the combined capitals had a loss of 7.6 per cent.
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The report shows Hobart was the only capital to record a rise in house prices over past three months (1.1 per cent), while Canberra’s figures remained flat.
CoreLogic Head of Research Tim Lawless attributed the country’s weakening housing conditions to tighter credit conditions dampening buyer activity.
The report also points out most buyers who have owned their homes for more than five years remain ahead.
“Although home values have been falling for almost a year-and-a-half nationally, dwelling values remain 18 per cent higher than they were five years ago,” it states.
Real Estate Institute of SA (REISA) CEO Greg Trouton said Adelaide’s 0.1 per cent drop actually reflected the “robustness of the Adelaide property market”.
“Relative to the roller coaster ride the real estate (market) has been in interstate, while I’d prefer to see mild growth over any decline, the 0.1 per cent needs to be seen in context,” Mr Troughton said.
“There are so many headwinds for growth, the relative smallness of the decline needs to be seen against the full backdrop.
“We expect the slow and steady approach to remain in SA.”
Mr Troughton said he understood many first homebuyers were sitting back and waiting for further declines, particularly interstate, but warned they were unlikely to be strongly experienced in Adelaide.
“Double digit declines after double digit growth (interstate) can be expected,” he said.
“Adelaide has not been on that roller coaster ride so… first home buyers need to be careful not to miss out on their home purchase waiting for great big declines.
“Adelaide remains the most affordable mainland city.”
Interstate highlights from the CoreLogic Home Value Index Report
▶ Best performing capital city: Hobart +1.1%
▶ Weakest performing capital city: Darwin -5.1%
▶ Highest rental yield: Darwin 6.0%
▶ Lowest rental yields: Sydney 3.4%