Welcome to 2024 I would like to wish everyone a prosperous year. I would like to share some of my thoughts on what the 2024 Property Market may look like
With inflation falling from over 8% to 4.3% we hope that we are at or at least close to the end of the interest rate rises
Another rate rise is unlikely. There may be room for rate cuts toward the end of this year.
The interest rate had a direct effect on the property market.
the Reserve Bank has raised rates 13 times in the past year and a half. The rate increases have impacted a huge amount. High interest rates make it difficult for property owners and buyers to make any decisions, and first home buyers become extremely cautious. High rates make obtaining finance very difficult.
CoreLogic data shows the median home in Sydney rose by 11.1%. In the regional markets. This growth can be attributed to the lack of supply on the market.
The general public have put off their property goals as Interest rates and the cost of living continued to rise, so we saw fewer homes for sale. The undersupply of houses on the market is what has helped keep prices strong. If the rates remain the same there will still be price growth which may lead to more listings.
Another major factor contributing to the undersupply of homes on the market is the massive reduction in new home builds. High construction costs and development approvals taking a very long time has created a reduction in new builds.
The rental market is suffering as a result. The lack of rental supply is continuing to force rent prices up. The high rental prices also mean that people are afraid to move as they are unable to secure a new place that they can afford so most renters are just staying where they live .
We are seeing more investors buying in markets further afield from where they live. If you’re interested in buying an investment this year it is my recommendation that you look at the growth suburbs of the west for inspiration.
Overall, the outlook for the 2024 property market is positive for both owner occupiers and investors, with prices rising, strong population growth and mass infrastructure investment. I hold the strong belief the sooner you invest and break into the property market, the better.