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Regional house prices feel the winter cold

14 Jul 12

The regional housing market is feeling the pressure of a slow economy and the winter cold with the median house price falling by 5.6% over the past 12 months.

Commenting on the release of the Valuer General’s median house price data for the June quarter, the Real Estate Institute of South Australia said that most areas had experienced a tough start to 2012 with house prices soft and the number of sales still low.

“The regional housing market is doing it tough at the moment, there’s no bones about it and this is reflective of a slow economy and job uncertainty in the regions,” REISA President, Mr Greg Moulton said.

“Just over 350 sales have taken place in regional towns over the past quarter which is similar to the volume of the same time last year and also last quarter.”

“Overall, the decrease in median house price for regional areas, over the quarter is only 1.5% which shows that although the market is flat, prices are not plummeting.”

“The main towns which are holding their own a little stronger than other towns are dependent on mining, such as Whyalla and Port Pirie.”

“The amount of stock on the market is still very high, which equals longer time on market. But the flip side for buyers is there are more choices and softer purchase prices.”

“When thinking real estate, it has to be a medium to long-term investment and history will show that you can’t beat the stability and reliability of bricks and mortar.”

A summary of the regional data is below:

  2Q 2011   2Q 2012   Quarter 12 month
Index Sales Median Sales Median % Change % Change
Rural Growth Areas 365 $269,750 353 $254,500 -1.55% -5.65%
Millicent 6 $176,500 9 $175,000 -5.41% -0.85%
Mount Gambier 69 $243,000 69 $210,000 -12.50% -13.58%
Murray Bridge 55 $250,000 53 $230,000 -8.00% -8.00%
Port Augusta 38 $230,000 23 $215,000 -12.87% -6.52%
Port Lincoln 39 $289,000 52 $276,000 -1.08% -4.50%
Port Pirie 28 $210,000 32 $200,000 8.11% -4.76%
Victor Harbor 87 $347,500 63 $331,250 -5.36% -4.68%
Whyalla 43 $245,000 52 $280,000 0.00% 14.29%
Berri 14 $148,875 9 $146,000 -35.11% -1.93%
Naracoorte 18 $202,500 20 $197,500 -12.80% -2.47%
Renmark 12 $285,000 11 $180,000 7.78% -36.84%
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