2024 Home-Buying Insights: Navigating the Real Estate Landscape
As you set your sights on purchasing a home in 2024, it's crucial to understand the dynamics of the 2023 real estate market to make an informed decision. Reflecting on the previous year’s property trends is key as we embark on what could be an eventful year in real estate.
A Look Back at 2023: The Housing Market's Journey
Despite economic challenges, including multiple interest rate hikes and rising living costs due to inflation, the national housing market experienced a robust growth of 7% in 2023. For a detailed analysis of inflation trends, refer to the Australian Bureau of Statistics report.
This growth was even more pronounced in certain urban areas. Sydney, Brisbane, and Perth witnessed remarkable double-digit increases in property values, registering rises of 10.2%, 10.7%, and 13.5% respectively, as detailed in CoreLogic's report.
Surprising Trends: Beyond Price Increases
2023 wasn't just about rising prices; the pace of sales also turned heads. In cities like Perth, Sydney, Brisbane, and Melbourne, homes were selling in record time - averaging between eight and 25 days on the market.
Looking Ahead: The 2024 Housing Market Forecast
With climbing interest rates beginning to impact the market, there is a subtle shift in the dynamic. CoreLogic reports a modest 0.6% rise in home values across Australia in November, marking the smallest monthly increase since early 2023. For more information, see CoreLogic's Home Value Index.
2024: Predicting Continued Growth
Three primary factors are poised to sustain house price growth in 2024:
- Population Surge: With immigration fuelling population growth, demand for housing is expected to rise. Domain’s report highlights this as a key factor exerting significant pressure on property prices. For more insights, see the Domain 2023 End-of-Year Report.
- Ongoing Housing Shortage: The shortage of housing, a major talking point in 2023, looks set to continue. Building approvals for new homes are still below the required levels.
- Tight Rental Markets: The challenging rental market, characterized by record-low vacancy rates, might encourage more people to opt for homeownership, facilitated by schemes like the First Home Guarantee.
Anticipated Price Increases in 2024
Experts predict a continued rise in house prices for 2024, though perhaps at a slower pace than in 2023. Domain forecasts a national increase between 5-7%, with city-specific predictions as follows:
- Sydney: 7-9%
- Melbourne: 2-4%
- Brisbane: 7-8%
- Perth: 6-7%
- Adelaide: 7-8%
- Canberra: 3-5%
- Hobart: 2-4%
Early Action Could Mean Savings
For those planning to buy, entering the market earlier in 2024 might be advantageous to avoid higher future costs.
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Disclaimer:
The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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