Buying and selling in a hot housing market.

Australian dwelling prices have continued to outperform expectations, with the hot housing market still showing very strong momentum.

BankSA’s economist team has just published their latest market outlook about what we might expect over the next couple of years.

Their results point to the price boom continuing at least until the end of this year and into the next, and they are now forecasting a 22 per cent gain nationally for the full 2021 calendar year - with Adelaide prices forecast to rise just below the national rate at 18 per cent.

While the economist team anticipate that growth could slow in 2022, housing prices could still see an increase of 8 per cent for the year, with most of that growth loaded into the first half of the year. From there, the market could move into the first year of a correction phase in 2023, with prices predicted to contract by 5 per cent.

So, with property prices forecast to show growth until at least sometime in 2022, it continues to point to a seller’s market. However, you will need to weigh up your individual situation – particularly if you will be selling and then buying.

According to CoreLogic, Greater Adelaide is experiencing a fall in stock levels. This means far less properties for buyers to choose from and increased competition, which continues to play a part in surging property prices.

For buyers, taking your time now and being flexible should generally work in your favour, particularly as we head toward what is historically a seasonal decline in listings from around mid-to-late November – adding pressure to the already-low stock levels. If you are ready to buy now, make sure you have your financial arrangements sorted and talk to your local lender to ensure you’re making the right decision for your circumstances.

As always, BankSA economist forecasts are subject to change, but they should provide some useful guidance on timing if you’re looking to buy or sell in the next 12-24 months.

* This article originally appeared in The Advertiser Property and Real Estate Magazine (Saturday 6th of November 2021).