There's no denying the cost of living, coupled with massive interest rate rises has hurt homeowners, but it's not all bad news for South Australians according to AMP's chief economist Shane Oliver.
"Adelaide has definitely shed its Cinderella status. It started to do that a few years ago and the people are seeing it as a vibrant, prosperous, optimistic city and as a consequence of course they see it as a safe haven to put their money."
"It's one of the last capital cities to be pretty strong and it's had huge gains in prices through last year they're roughly up something like 17% or thereabout over last 12 months, up pretty marginally in the June quarter."
"The other thing to note for investors is that rental yields are rising in Adelaide. We are seeing decent gains in rent on the back of very low vacancy rates."
The spectacular West Australian market has seen sudden massive falls and the prediction is it will only get worse.
"I wouldn't be surprised to see Perth prices fall about 15% over the next 12 months� some suburbs may drop by 30%," says Shane.
So expect more cashed-up sandgropers to be on the lookout for investments right here in the city of churches.
We've already seen evidence of West Coasters, scouring our regional centres for cheap buys.
Now it's Adelaide's turn and where are the best investment hotspots?
Robin Turner, President of the Real Estate Institute says, "long term investors tend to go for metro areas. In the city or close to the city because they have the strong capital growth. I would say to investors that there are lots of good spots in which to invest� but there are some sure fire winners� anything along the coast."
And the sure fire winner?
"Areas like Victor Harbour will continue to boom and prosper because topographically it's such a wonderful spot and it has everything there that one needs to live a very happy life only an hour or so from Adelaide," says Robin.
He says the reality of more players entering the fold is Adelaide prices will soon be driven up and so will the rent.
It might be welcome news for some, but not for those struggling to enter the market.
But if you are going to sell your home, as we've pointed out before, you can still add a lot of value with a few renovations.
Re wiring your home will only get you back 25 cents for every dollar spent, a swimming pool 50 cents.
A kitchen and bathroom makeover will return $1.50 for every dollar spent.
But the real value added things to look at it is floor coverings, painting and landscaping, that will add $3 for every dollar spent.
Economist Shane Oliver says with lean times ahead for most sectors of the market the key is to hold on and budget well, at least until those elusive interest rate falls.
"The key there is to keep up the mortgage repayments. Interest rates will probably stay high. In a few months hopefully they'll start to come down. The trick is to try and find savings in other areas."
