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Real estate agents are predicting the property market in one of Australia's fastest-growing regions will settle in 2023 after leading much of the nation last year.
Key points:
- The annual median price for a house in south-east SA grew 18 per cent last year
- The local real estate industry is predicting houses will stay on the market longer in 2023
- They say first home buyers will have a better chance of entering the local housing market
The South Australian South-East data region, which covers an area including the Limestone Coast, Riverland and Murray Bridge, was one of the strongest performing regional property markets in the country, according to market analysts PropTrack.
Its Regional Australia Report revealed houses in the region spent a median of 43 days on the market, the fewest in regional Australia.
It also found the region had the second-highest annual growth at 18.6 per cent.
Greater Adelaide had a median of 59 days on the market in August, while it was 48 in Greater Sydney, according to Domain.
Overall, regional South Australia bucked the trend of falling or stagnating markets experienced in other states during 2022 as interest rates and the cost of living both rose.
In the Mount Gambier region, median house prices rose from $300,000 in January 2022 to $375,000 in December.
Looking ahead to 2023, Ray White Mount Gambier principal Tahlia Gabrielli said the Limestone Coast market would "soften" but prices were not likely to fall.
"The supply and demand issue is going to alter, there is going to become more stock available," Ms Gabrielli said.
"High interest rates will unfortunately affect some people, this will be the highest some people have ever seen interest rates.
"It's going to be an easier buyers' market because they're not going to be competing against 10 other people trying to buy the one property."
Hopes for first home buyers
Mount Gambier resident Amanda Lengyel experienced firsthand last year how hot the property market in her hometown could get.
She and her partner Steven made a spontaneous decision to upgrade their home after heading to an open house.
Fewer than two weeks later, the home they owned was listed on the market, opened for inspection and sold.
"There's properties that are going up and selling up in the same week. It's pretty crazy but I think it's due to slow down," Ms Lengyel said.
"I've seen the way things have shifted, 10 to 15 years ago the housing market was fairly slow, so it's great for the area.
"From COVID I think there was a heap of people who were looking to move here because of all the issues in cities from it."
Ms Lengyel said she hoped the market would settle to benefit young people in the town looking to make it their home.
"Young couples and young families trying to buy their first home, I can see it being quite a difficult time because prices have gone up," she said.
"That puts a strain on people's budgets, so it definitely has to settle to allow younger buyers to get into the market."
Ms Gabrielli said while higher interest rates may be a barrier for some first home buyers, it will likely be a better time for them to enter the market.
"People may actually have the chance to have multiple inspections and not have to make a decision in 24 hours or less," she said.
"Days on market, I think, will be longer just based on the way the market is levelling out."