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Flat property market ready to pounce in spring

13 Oct 12

The winter property market has recorded some flat trends, but with optimism leading into spring with a fresh flurry of activity after the recent interest rates cuts, said the Real Estate Institute of South Australia today.

The September quarter property settlements were officially released today and REISA President, Mr Greg Moulton, said that there were no surprises in the data with the quarter total volume sales being similar to the same time last year.

“Properties have been moving, but at a slower rate than people were used to several years ago, so there is no doubt that property market is experiencing some tough times, like other sectors across the State,” he said.

“However, the interest rate cuts in recent months have really started to stimulate buyer activity and REISA members are commenting that more negotiations and contracts are being written in recent weeks, so we are optimistic of a stronger spring season.”

The official Government data for the September 2012 quarter shows that the median price in metropolitan Adelaide is $385,000 which is 0.9% lower than the same time last year. Across the State, the SA median is $360,000 which is the same as the September quarter for 2011.

Top performing suburbs for the quarter included Somerton Park, Hope Valley and Salisbury with growth over the 12 month period of 18.4%, 17.6% and 13.55% respectively.

Examining wider trends, the inner city suburbs performed well over the past quarter with sales volume up on the same time last year and a small increase in the median house price (up 0.36% to $607,200).

Mr Moulton said that the latest sales are not revealing any strong patterns of growth, and more so, it appears that prospective purchasers are considering each property on the market on its individual merits.

“In tougher market conditions, having the property priced for sale in the current market is crucial and this is where the relationship between vendor and agent is critical,” he said.

“Moving into spring, I think there is a sense that the market will shift and a further rate cut will definitely boost confidence in the housing market.”