House prices are expected to rise yet again in 2025 – but there has been a brief window of hope for those looking to crack the SA market.
PropTrack’s latest Home Price Index showed Adelaide home values fell for the first time in two years over December, with the average home losing 0.18 per cent of its value.
It means buyers are saving at least $1431 on a metro home with a median sale price of $793,569.
Nationally, home prices fell by 0.17 per cent over December, while prices across most of Australia’s regions remained relatively stable, except for regional SA which recorded an increase of 0.6 per cent.
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PropTrack economist Anne Flaherty attributed the market slowdown to an increase in property listings, which eased pressure on buyers to bid up prices.
“Home prices in Adelaide fell by 0.18 per cent in December, though remain 13.53 per cent higher compared to 12 months ago,” she said.
“An imbalance between supply and demand has contributed to strong price growth, with the median price of a home in Adelaide now higher than Melbourne.
“Despite this, price growth momentum has slowed in Adelaide. Furthermore, net interstate migration which turned positive during the pandemic is now negative, which is likely to have implications for demand.
“Another factor which could place a damper on price growth is new housing supply, with new dwelling approvals and construction starts having picked up.”
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![Supplied Real Estate Home Price Index December](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Ms Flaherty said almost all capital cities, with the exception of Perth and Hobart, recorded declines in value.
In Melbourne, home values dropped by 0.53 per cent, 0.61 per cent in Canberra, 0.29 per cent in Sydney and 0.04 in Brisbane.
Prices in Perth, meanwhile, climbed 0.39 per cent in December and 0.03 per cent in Hobart.
“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher,” Ms Flaherty said.
“While December was the first month in which national home values declined in two years, price growth momentum had been slowing since March 2024.”
PropTrack economist Anne Flaherty attributes the market slowdown to an increase in property listings.
Despite a brief opportunity for first homebuyers to get a foot in the market, overall it’s still expected to be a positive year for house price growth.
According to the PropTrack Property Market Outlook, national home prices are predicted to rise by 1 to 4 per cent in the year ahead.
While the higher end of this scale is still above wages growth, it is less than the 5.5 per cent growth recorded in 2024 and the nearly 7 per cent growth recorded in 2023.
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