SA Bucks Is Trending After Regional Property Boom Deflated Across Australia

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The regional housing boom was sparked in Australia. The data shows that property prices are starting to decline except in South Australia.

According to CoreLogic’s latest regional property report, published this week, house values across Australia’s six most popular lifestyle markets have fallen 6 per cent or more in the past quarter.

Kaytlin Ezzy, an economist with CoreLogic, said, “The downturn in Australia’s housing market was becoming more broad-based. Rates are rising, and 87.8 per cent of regional properties post price declines.”

She further added, “Consecutive interest rate rises, persistently high inflation, and waning consumer sentiment saw the pace of value declines accelerate across regional Australian property markets.”

“It is unsurprising the Richmond-Tweed region recorded the strongest decline in house values. Throughout the COVID period, values skyrocketed, rising more than 50 per cent and taking the median house value to more than $1.1 million.”

This has led to a situation where there is an oversupply of properties on the market, and as a result, prices are dropping. Sellers who bought at the market’s peak now have to retreat and sometimes even sell below the purchase price. This is causing problems for the market as it adjusts to the new reality.

“While the negotiating power across Australian regional markets is slowly transitioning to the buyer, tight supply is likely insulating the downturn to some extent,” Ezzy said.

According to PropTrack’s analysis, 14 regional areas have yet to have property prices fall from their COVID-19 peaks. This indicates that while the market is experiencing some turbulence overall, there are still areas where prices are holding firm.

“We’ve moved into the next stage of the property cycle faster than some expected,” Creagh said.

“As interest rates have quickly risen, we’ve seen home prices fall from peaks.”

Hence it is summed up that while there is some turbulence in the national market, SA’s housing market remains strong and resilient.

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