Buying your Home: What You Need to Know in 2025

With the recent shift in interest rates and Adelaide's steadily growing property market, now could be a strategic time for homebuyers looking to enter or upgrade to suit their property needs. Whether you're a first-home buyer, investor, or looking to relocate, understanding the market dynamics and financial landscape is crucial for making informed decisions.

Interest Rates and Their Impact on Buying Power

In February 2025, the Reserve Bank of Australia (RBA) reduced the official cash rate by 25 basis points to 4.10%. This decision came as inflation showed signs of easing, bringing some relief to borrowers after a prolonged period of higher interest rates.

Following this adjustment, major banks—including Commonwealth Bank, NAB, Westpac, and ANZ—implemented corresponding reductions in their lending rates. While this provides some relief for buyers, the RBA remains cautious, signaling that further cuts are uncertain in the short term.

For Adelaide homebuyers, this means:

• Lower mortgage repayments compared to late 2024
• Improved borrowing capacity for some buyers
• A possible uptick in demand as affordability improves slightly

Adelaide’s Housing Market: A Strong Performer

Adelaide has continued to show resilience in the property market, outpacing other major Australian cities in price growth over the past year.

Current Market Snapshot (as of February 2025):

• Median house price in Greater Adelaide: $873,029
• Annual growth rate: 3-6% projected for 2025
• Strong-performing suburbs: Playford (+15.9%), Gawler-Two Wells (+14.8%), Salisbury (+14.2%)

Despite rising property values, Adelaide remains more affordable than Sydney, Melbourne, and Brisbane, making it an attractive option for homebuyers looking for long-term value.

What’s Driving Adelaide’s Growth?

1. Tight Supply – Fewer listings and strong buyer demand continue to push prices up.
2. Interstate Migration – More people are choosing Adelaide for its affordability and lifestyle benefits.
3. Infrastructure & Development – Government-backed projects and urban renewal initiatives are enhancing livability and boosting property values.
4. Relative Affordability – Compared to eastern capitals, Adelaide still offers value for money, especially in outer metropolitan suburbs.

Should You Buy Now? Key Considerations for Adelaide Homebuyers

If you're planning to purchase a property in Adelaide, here are some critical factors to weigh:

• Interest Rate Environment – With the recent rate cut, mortgage costs are slightly lower, but further reductions are uncertain.
• Price Growth Trends – Adelaide’s market is stable and growing, making it a good time to buy before prices rise further.
• Suburb Selection – Look for emerging areas with strong capital growth potential, such as northern and outer southern suburbs.
• Government Grants & Incentives – First-home buyers in South Australia may still be eligible for grants and stamp duty concessions, helping offset costs.

Final Thoughts

Adelaide’s property market continues to perform well despite economic shifts, making it a solid choice for homebuyers seeking stability, affordability, and long-term growth. With interest rates easing and property values on the rise, now could be a great time to explore opportunities in South Australia’s capital.

If you’re considering buying a home, working with a local real estate expert can help you navigate the market and secure the best property for your needs. If you have any further questions or would like assistance with your property journey, our team at Allan Real Estate would love to chat.

Contact Us

hello@allanre.com.au

(08) 7120 7299