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Regional housing market starting to pick up moving into spring

15 Oct 12

The regional housing market has shown some signs of bounce after a solid quarter of settlements and a small movement in median house prices, according to the Real Estate Institute of SA.

The September quarter property settlements were officially released today and REISA President, Mr Greg Moulton, said that the regional areas have been a little stronger than metropolitan Adelaide, which is a positive sign after some tough times across the State.

“Preliminary data shows that over 330 houses sold in the major towns over the past quarter, and when this data is finalised, it should lift to around 400 which is above the same time last year,” Mr Moulton said.

“Although the boost is small, it’s a good sign to move into spring with and it shows there is some confidence across the regional areas.”

“Additional, 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 regional SA is $255,000 which is 6% higher 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.

Mount Gambier and Victor Harbor recorded growth for both the past quarter and the 12 month period and were particular stand outs for regional towns in this reporting quarter.

“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,” Mr Moulton said.

 

    3Q 2011   3Q 2012   Quarter            12 Month       
Index Category Sales Median Sales Median % Change    % Change
Rural Growth areas Houses 362 240000 337 255000 0.00% 6.25%
Component Towns              
Millicent Houses 14 150000 15 125000 -31.5%  -16.67%
Mount Gambier Houses 69 220000 65 253000 20.48%

15.00%

Murray Bridge Houses 48 225000 52 222500 -3.26% -1.11%
Port Augusta Houses 38 213500 31 220000 -2.22% 3.04%
Port Lincoln Houses 55 265000 34 263250 -4.96% -0.66%
Port Pirie Houses 38 176500 27 181000 -8.59% 2.55%
Victor Harbor Houses 59 317500 74 359000 7.97% 13.07%
Whyalla Houses 41 296250 39 265000 -5.36% -10.55%
Barmera Houses 6 142500 5 130000 -25.29% -8.77%
Berri Houses 6 200000 12 222500 52.40% 11.25%
Naracoorte Houses 23 180750 14 175000 -14.63% -3.18%
Renmark Houses 22 175000 12 227500 26.39% 30.00%

*Towns with low volumes (less than 10 sales in each reporting period) should be used with caution as they are not statically reliable or robust.

 

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