Ring Partners

Median prices 1984 to now

Median prices were first used in 1984 to more accurately monitor house prices.
The whole of the greater metropolitan market place, that is from Willunga to Gawler, is the basis for these figures. Average prices were used prior.
The median house price has shown an increase every year except for the two consecutive years of 95 (-1.7%) and 96 (-1.3%) and last year (-2.2%) when we experienced the only drops in house prices in the 36 years we have kept records.

1984 – $62,000
1985 – $72,200
1986 – $73,500
1987 – $74,500
1988 – $80,400
1989 – $90,400
1990 – $97,200
1991 – $103,900
1992 – $108,300
1993 – $111,200
1994 – $113,500
1995 – $111,500
1996 – $110,000
1997 – $133,500
1998 – $118,600
1999 – $127,000
2000 – $135,000
2001 – $150,000
2002 – $180,000
2003 – $225,000
2004 – $260,000
2005 – $275,000
2006 – $285,000
2007 – $324,000
2008 – $363,500
2009 – $368,000
2010 – $405,000
2011 – $396,000

The median price has risen $110,000 in the greater metropolitan area (Gawler to Willunga) from 01/01/07 – 31/12/11. In your area (the central metropolitan area) this increase may reflect an $80,000 to $140,000 increase.

An historical overview – house prices only..

The conservative Adelaide market place has risen every year for the 36 years this office has kept records except for 1995 and 1996, and now 2011 with nominal variations.

(95 & 96 were the two horrific residual years of the demise the State Bank.)

This office has always made a point of trying to understand this complex market place. We have been successful with our assertions over the years and our predictions have always been credible. The Adelaide market will always display a natural note of caution from time to time usually in response to national issues or seasonal adjustments. Official figures show the conservative Adelaide market normally rises slowly and plateaus, rises and plateaus. It is rare for our market place to fall.

Our current thinking on the Adelaide market place.

(That is the greater metropolitan Adelaide. – from Gawler to Willunga).

The Adelaide market place has not ever been a volatile market place. Overall, it is expected the Adelaide market place will continue to firm for the foreseeable future, often contrary to national trends. The market recognises we have a lot of catching up to do compared with all other mainland capital cities.

2011 – The volume of house sales was down 12.5% however the median price dipped only 2.2% (9,000), only the third drip in 36 years we have kept records.

In 2010 the median price rise of $37,000 was inflated by high and extraordinary increase in the median price for the inner metropolitan area in a contracting market place.

In 2011 the median price was pushed down 49,000 by a huge correction and downturn of the median price for the inner metropolitan area.

The central metropolitan area which accounts for about 50% of the market place, appears to have firmed contrary to the Adelaide wide figures.

The sales volume for 2011 is down a massive 33% from the pre GFC figure of 2007. The downturn of 20,000 house sales for the last 4 years is equivalent to not selling a house for a whole year (av. 20,000 for the past 11 years).

If 20,000 buyers enter the marketplace in 2012 together with the normal 20,000 we will have a massive boom – not likely given some unwarranted fears in the market place.

This huge bank of buyers or pent-up demand, should slowly release into the market place throughout the year and together with the usual number of buyers…….it is expected we will see improved activity and a firming of prices in the market place for 2012.

The Adelaide median price for ‘house sales’ was $72,200 in 1985, $111,500 in 1995, $276,000 in 2005 – what will the median price be in 2015?

Our recommendation to buyers:

Buy sooner than later. The longer term economic outlook for SA is bright – SA is great.

Knowledge and understanding of the market place fosters good agency practice and good business ethics.

• Integrity in real estate.