Property values in the South Australian capital of Adelaide are rising quickly, while this news would make any property owner’s heart skip a beat, it also raises questions about how long these price rises will continue. Nationally Adelaide is leading in property prices. Now the question is will Adelaide’s property prices take a U-turn?
What does the future hold for property prices in Adelaide?
For now, there has been speculation about an impending cooling in Adelaide’s property market. New data from ANZ Bank indicates that values have risen by 1.9 percent over the month of April. What we can see, although prices remain high when compared to 12 months ago but the market is loosing its growth momentum. What we can see now buyers in the Adelaide property market are taking cautious steps and taking time to buy an ultimate desirable home in South Australia.
Should you still buy now while interest rates are low (and will it go up eventually)?
The Reserve Bank’s decision to increase the cash rate by 0.25 percent earlier in May was met with great anticipation of its effect on property prices. ANZ’s predicted 11 percent decline by the end of next year caused many people to reconsider whether now is still the right time to buy into an already expensive market – even with interest rates at their lowest levels ever and expected to rise “sometime soon”. If you look at the Adelaide property market, there is something else about it. Property value in Adelaide and Houses for sale in Adelaide are rising and at the same time, rental properties in Adelaide are under a microscope.
Conclusion. Maybe I shouldn't buy after all... yet... but here's why I still think it could be worth taking the plunge.
By looking at the figures, the rise in interest rates could have detrimental effects on the housing market. I’m not saying it’s going to crash, but market will go under correction phase.
For now, if you’re looking to sell your home in 2022 or 2023, you still have a chance to secure good profits as the buyers in the market are still actively looking and ready to put their offers. Overall, prices still seem like they could be rising—the big question is when and how long will these rises last?
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