The Property Market in 2024

As we bid farewell to 2023, the lingering question on everyone’s lips is: what will the property market look like in 2024? Reflecting on the past year, which began with two cash rate rises and an initial dip in housing prices, the market rebounded in the latter half of 2023. Now, as we look to the future, let’s explore some potential property market scenarios.

House Price Recovery:

There’s potentially some good news in store for homeowners, as the property market in Australia is expected to continue its recovery in 2024. Projections from The Australian Financial Review suggest a median 4.5% increase in national property prices in 2024. Westpac Senior Economist Matthew Hassan foresees ongoing growth, albeit at a slower pace, influenced by increased seller activity and COVID-19-induced forced savings.

Capital City Variances:

Brisbane is emerging as a potential hotspot with a projected 6.5% increase in property prices, attributed to factors like infrastructure development, job opportunities, and the upcoming 2032 Olympics. Meanwhile, according to CBA, Melbourne and Sydney’s property prices are also poised for healthy growth in 2024.

However, SQM Research’s Louis Christopher offers a contrasting view, expecting Perth and Brisbane to be the only capital cities in 2024 to record significant price rises, with other

major cities, including Melbourne and Sydney, potentially witnessing a correction in dwelling prices.

Interest Rate Outlook:

The burning question revolves around variable interest rates. After a sharp increase over the past two years, with the cash rate rising from 0.1% in April 2022, to an eye-watering 4.35% in November 2023, there’s speculation about a potential decrease in 2024. While three of the four major banks believe the peak has been reached, NAB predicts a peak in February 2024. All four banks agree that the first cash rate reduction will occur in late 2024, with the cash rate predicted to be sitting somewhere between 3.1% and 3.85% come year’s end.

Market Dynamics:

If property values continue to rise and interest rates eventually decline by the year’s end, 2024 could present ripe opportunities for sellers. Whether you’re buying or selling, consulting your local real estate agent is crucial for navigating the dynamic market, and don’t forget to chat to your local MoneyQuest mortgage broker about your loan options.

While interest rate and property price projections are certainly food for thought, market dynamics (and opinions) change, so it’s important to stay informed and seek professional advice from trusted finance specialists regarding your finances and property plans.

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