What’s ahead for property in 2024
Is the property set up for strong growth?
As we look ahead to the property market in 2024, it’s clear that we are at a pivotal moment. The market has experienced a period of stability, but signs of growth are beginning to emerge. In some places, in particular, property values have started to increase, despite rising interest rates.
Since late 2022, we have experienced twelve interest rate rises. High-interest rates and inflation will likely keep eating away at the average Australian’s household budget for some time making the property less affordable. Yet housing markets remain stubbornly resilient with rising house prices and skyrocketing rents.
The question on everyone’s mind is what lies ahead for the property market in the new year. Will the trend of growth continue, or will external factors such as interest rates and the supply of properties disrupt the upward trajectory?
One certain thing is that the supply of good property remains low. This scarcity is likely to push property values even higher, creating a situation where demand far exceeds supply. This imbalance has the potential to drive property values higher than they should go in a more balanced market.
Although the RBA kept interest rates unchanged in December, the potential for further interest rate increases is still a concern. While there are indications that rates may not rise any further, the uncertainty surrounding this issue adds another layer of complexity to the market outlook for 2024.
Despite these challenges, the property market is poised for strong growth in the coming year. The signs of an increase in property values towards the end of 2023 indicate that the market is primed for further expansion.
“Our housing markets bottomed in mid-2023 and a new cycle has begun”.
In conclusion, the property market in 2024 is likely to be characterized by continued growth, driven by low supply and high interest rates. However, investors need to approach the market with caution and carefully consider the potential risks and uncertainties that lie ahead.
As we navigate the complexities of the property market in the coming year, it’s crucial to stay informed and make strategic decisions that align with your long-term financial goals.
It’s crucial to stay informed and make strategic decisions that align with your long-term financial goals.
By Paul Kounnas
