Aidan Curtis
THE median house price in Mount Gamber/Berrin has risen to a new high over the March quarter despite a drop in the number of sales.
Mount Gambier has recorded its highest ever median house price of $383,500 in the March quarter while sales were down around 50 per cent from the same point last year.
According to Real Estate Institute of South Australia (REISA) legislation and industry adviser Paul Edwards, it was unusual to see median price and sales numbers going in opposite directions.
“It went down from 178 sales down to 99, but the interesting thing about it was it had a new record median price of $383,500,” Mr Edwards said.
“The volume of sales are way down due to the limited supply, yet the median prices are still smashing records basically because buyers are still willing to pay premium prices for properties that are realistically and transparently priced.
“You would normally expect volume and median price go down together or go up together, but it has been like this basically since we had a supply issue.”
Mr Edwards said it was a similar story across the state, with many regional areas breaking median price records, which was stopping first home buyers from entering the market.
“With limited supply and when the median price keeps on going up, it just makes affordability of a property even worse,” he said.
“I’m certainly of the view that sales will bounce back, but just in terms of the rising interest rates, the whole economic outlook, who knows what is going to happen?
“Once sales bounce back, then you have demands not outstripping supply and therefore things might stabilise – certainly that’s what we’re hoping, because this is a disaster for first home buyers and people wanting to get into the real estate market.”
REISA chief executive Andrea Heading said the figures demonstrate a very competitive market and highlight the need for an adequate and affordable housing supply.
Ms Heading said REISA would like to see Australian governments accelerate their plans for building affordable housing.
“I know they’re making inroads in that space now, but it’s more about making sure there’s more available in a shorter time period than having too much of a long term view,” she said.
“While there is no doubt that the local and national economic outlook is playing its part, the South Australian Government must continue its work to formulate strategies that enable all Australians to realise their ownership dreams.”
