Theresa Worrell: Adelaide Housing Market Update [video]

The pace of capital gains has eased off a bit across Adelaide.

After the monthly growth rate reached 1.3% in November last year, conditions have eased back to a monthly gain of 0.8% in February.

Houses have been leading the growth trend, rising in value by 3.1% over the past three months while unit values have recorded a lower 0.8% lift.

Both house and unit values were at record highs in February.

Across the sub-regions of Adelaide, the outer southern region of Onkaparinga has recorded the highest capital gains, up 10.8% over the past twelve months, while at the other end of the spectrum, Adelaide City is the only sub-region to record a decline over the past year, with values down 1.2%.

Our estimate of sales activity over the past three months is tracking 19% higher than a year ago, but listing numbers are down 32% on last year.

With demand high and supply low, we are expecting the market will continue to favor sellers over buyers, with further upwards pressure on housing prices.

Adelaide