Experts predict a $40,000+ drop in Adelaide property prices. Is now a good time to buy a house?
There’s no doubt we’re going through an unprecedented challenge. Yet, South Australia has done a great job at handling the crisis and is faring well, from a real estate standpoint (particularly in our region, Mount Barker to Strathalbyn).
Realestate.com.au went on to compare South Australia to other states, just above Canberra with the smallest drop still hitting 6.4%. Numbers in other states, like Sydney and Hobart, aren’t tracking so well. Sydney is set to drop 10.2%. Real estate in the Adelaide Hills has long been a steady, safe market. It’s great to see this is holding true, even right now.
Adelaide Hills’ historically humble resilience
Adelaide Hills property prices have a long history of stability, being less prone to spikes and dips. South Australia is consistent and remains an affordable place to buy a home – maybe now, more than ever before.
The Nitschke office has seen a steady flow of people who are ready to buy a home, right now. While we’re seeing less new houses for sales in the Adelaide Hills, with people holding onto their current homes, the demand is underpinned by those who are ready to commit.
Low interest rates & JobKeeper
People whose income remains stable and secure will be able to leverage the historically low interest rates. These reduced rates are driving consistent interest, as you can get more value from your bank. This rings true for current homeowners, who might like to consider sourcing a lower rate.
In addition, some mortgage lenders are including Job Keeper, the COVID-19 support scheme, as part of their income tests for new applicants. This means, it’s never been easier to own real estate in the Adelaide Hills with a ‘net outlay’. On this note, if you’re considering taking advantage of the current situation, it’s important not to overextend yourself.
Avoid short-term, reactive decisions
Owning property is a long-term commitment. As such, it shouldn’t be something that puts you under pressure to meet your financial obligations. Be realistic about what you can afford, plan for the unexpected, and know that whatever happens, you can cover your repayments.
This rings true always, but now more than ever. The best time to buy is not just when the market suits you but also when you can afford to do so.
If you’ve been thinking of buying an Adelaide Hills property and are considering whether now is the best time for you, contact us on 8391 5004 or fill in this contact form. We’ve been here for 20 years and that’s not by luck. We know the Adelaide Hills, its property market, and possibly your new home, very well.
