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Adelaide's property listings under pressure

11 Jul 14

The level of competition faced by Adelaide property buyers may soon rise even further, as it emerges that stock levels are falling throughout the city.

June data from SQM Research shows there were 6.3 per cent fewer properties available for sale in the month compared to May - a fall from 16,879 to 15,819.

A year-on-year drop of 8.2 per cent was also registered, suggesting this is a trend those following a real estate career may have been witnessing for some time.

However, there is some good news for buyers as the cost of houses in Adelaide experienced a 0.1 per cent decline in the three months to June this year. They are nevertheless 3.5 per cent higher than they were 12 months ago.

Units, on the other hand, witnessed a 1.3 per cent increase in the June quarter and finished the year 3.6 per cent higher than they started.

Louis Christopher, managing director of SQM Research, said: "Overall, the index recorded yet another mixed bag for the national housing market. The outlook at this stage does not look materially different.

"Back in September 2013, our predictions were a 7-11 per cent capital growth as an average for the capital cities. So far we believe that forecast is very much on track."

This follows the release of figures from RP Data earlier this month, which showed how Adelaide is bucking the trend when it comes to property price rises.

The June RP Data Rismark Hedonic Home Value Index showed Adelaide and Darwin were the only two state or territory capitals to have registered a fall in the month.

Adelaide's property values declined 0.7 per cent compared to May and were 0.4 per cent lower than in the previous quarter, which will no doubt open up the market to more first home buyers.