House prices are at an all-time high in regional South Australia as realtors battle to keep up with increased demand.
Key points:
- Low interest rates and first home buyer grants are believed to be behind soaring house prices in regional SA
- Median house prices have reached record highs in Mount Gambier and Port Lincoln
- Real estate agents are reporting strong buyer demand across all price ranges
The lowering of interest rates and release of government assistance packages are just two factors driving the highly competitive housing market.
It has seen median house prices soar to record highs in places such as Mount Gambier and Port Lincoln.
Sales manager Ben Jeffrey, from Gebhardts Real Estate in Mount Gambier, said he had not seen the demand for homes this high during his 14 years in the industry.
“Probably the first run of strong interest was years ago when the first home buyer grant came out, but that was really capped at houses under $200,000,” he said.
ABC South East SA: Todd Lewis
)Mr Jeffrey said buyer confidence had grown in the months before COVID-19, but he did not expect it to grow even further.
“I think all agents would say they did not expect it to push so hard and so strong,” he said.
“We’re regularly getting three, four or five offers on the same property.
ABC South East SA: Bec Whetham
)Regions attracting buyers from interstate
In the fourth quarter of 2020, Port Lincoln’s median house price reached a record high of $340,000 up around $50,000 on the previous quarter.
Kemp Real Estate principal Steve Kemp said a huge jump in interstate inquiry had been a contributing factor to the Port Lincoln surge.
“I think since COVID people are looking at regional areas and seeing the lifestyle because people have realised they can now do business in a different manner.”
Mr Kemp said, as a result, the demand for homes was exceeding supply.
“Every time that happens, we see price rises in all areas,” he said.
ABC South East SA: Todd Lewis
)Challenging climate for buyers
People looking to enter the competitive market have found it a challenging process.
First home buyer Brandon Kranz made a conscious decision to start looking for a property in Mount Gambier around March last year.
After capitalising on the government’s first home buyer grants, Mr Kranz had just three months to find his first home.
“Only having three months was pretty stressful because obviously the market was going up and up and making it more difficult to find the home I wanted.”
After adjusting his budget and expectations, Mr Kranz found a suitable home and was fortunate enough to have an offer accepted.
“I just had to bring back what I was expecting to get out of the house a little bit because the prices were getting blown out of the water,” he said.
“I was very lucky to get in when I did because, even after the process had finished, I was still checking out the market and some of the houses that are very similar to mine were even more expensive again.”
