2024 property market predictions
Here we are. 2024.
Perhaps one of the biggest question marks on everyone’s minds is given the yoyo of the property arena the last 3-4 years, what the property market will look like this year.
So we thought we’d pen down our predictions.
(Note this is our personal perspective and not financial advice)
#1 Interest rates will likely come down
2023 was the year of fluctuations in interest rates. It had us all on the edge of our seats, so it’s fair that this is our first prediction.
This year, we are forecasting a cut in interest rates (some of Aussie’s biggest bank economists like CBA also are forecasting this) or an upcoming introduction to other stimulus measures that will ignite demand and create another price upswing in our property prices.
ETA? We’re thinking maybe around the middle or latter part of 2024.
What this means for property owners and seekers:
With interest rates predicted to come down later this year?!
It makes NOW the prime time to start lookin’ (as lower interest rates will also ignite an increase in property prices — see #2) and buying.
#2 House prices are on the rise and gonna go up
A rate cut = easier for mortgage serviceability.
This will also mean a speed up of access to the property market for many Aussies. Which in turn will increase demand, and inevitably, uplevel the value and the price of owned properties even more.
What this means for property owners and seekers:
It’s good news for existing property owners! Increase in property value and prices = increase in equity.
#3 Rise in home lending
According to The Australian Bureau of Statistics, there has been a 5.4% increase in new mortgage commitments over the last year.
This is the first year-on-growth in almost 18 months. Which is interesting, considering there’s been an increase in interest rates over the last year. But what this DOES mean is that this is perhaps a rebound in confidence and purchasing of property following the wobbles of the interest rates early 2023.
Construction loans to investors in particular? Rose by 17.2%!
What this means for property owners and seekers:
Rise in home lending = competitive rates at play.
This is a great chance for those with existing mortgages to review their agreement with their existing banks (and see if a switch/refinance could put more money back in your pocket) and important for those about to buy a property to take the time (or engage a friendly Broker) to ensure their mortgage solution is tailored to their personal circumstance.
#4 Limited new rental properties
It ain’t no secret that rent has risen rapidly since the pandemic, especially with research and studies indicating that more and more people now a days are seeking to live alone.
However, with the traditional household size starting to increase again, investors not being as active as they have been, and uber limited new rentals, this does mean there is going to be a lower number of properties for rent available which in turn will drives rise in rental costs.
What this means for property owners and seekers:
Investors may wish to review their current rate. Renters will be looking at alternatives to buying a property themselves instead of paying for someone else’s mortgage.
#5: Increase in consumer confidence with brokers (YAY!)
In July and September 2023, mortgage brokers were responsible for 71.5% of all new residential home loans.
Wowzahs. This is a massive and incredible stat.
We’re predictin’ that trust and confidence will be further strengthened from property seekers, owners and investors in brokers this year!
What this means for property owners and seekers:
Find a broker you can truly trust and connect. This in turn will help you save time (and sanity) when it comes to one of your biggest assets.
Ready to take that next step in your property buying, refinancing journey?
Get in touch with us now via dean@lennygroup.com or by calling us at 0487 688 487.