South Australia's regional property market may have been stagnant throughout 2012, yet the Real Estate Institute of South Australia (REISA) is expecting healthy growth in the coming year.
The state's regional housing market finished 2012 with a median price of $250,000, the exact same result as the year before, new data from the REISA shows.
The REISA said that the regional market has been through a tough 12 months, but with little change in the median price, and a small increase in the volume of sales, there are positive signs for 2013.
“Regional markets often follow the metropolitan buying patterns and we are starting to see slightly increased activity which is important as there is a high level of stock on the market in all areas,” REISA president, Greg Moulton, said.
“Now that interest rates have moved a little further down, there should start to be more momentum to buy, which will prompt local markets to recover in 2013.”
Mr Moulton admits the market has been tough, but stressed that investors are likely to return to the market in the near future.
“The past few years have been really tough in the regional real estate market and whilst the recovery may be slow, it should start to pick up as people return to the stability of bricks and mortar investment,” he said.
“The median house price must always be used with caution as it’s simply an indicator of what has sold in the local area, rather than an assessment of housing values,” Mr Moulton said.
“Particularly in markets like this, buyers and sellers need to trust their local REISA member to be a source of credible information on the local market.”