Australian Housing Market Outlook: A Look at 2024 Trends and Predictions - Property Inc

Australian Housing Market Outlook: A Look at 2024 Trends and Predictions

The Australian housing market has been a rollercoaster in recent years, with record high median property values and varying trends across capital cities. As we approach 2024, experts provide insights into the expected shifts in the market. Hanan Dervisevic, in her article “Are Australian house prices dropping? Here’s how much prices have risen or fallen in each capital city,” and Henry Thai, author of “Top five trends for the Australian housing market in 2024: More demand on the horizon,” offer valuable perspectives.

Dervisevic reports that Australia’s median property value has reached a historic peak of $753,654, with cities like Sydney and Perth experiencing significant price movements. Tim Lawless, CoreLogic research director, anticipates a more varied housing market in 2024. “Expectations that value growth will be lower and more diverse from region to region and across housing types,” Lawless explains. He adds, “We don’t expect to see a material lift in housing activity until interest rates reduce, and that isn’t likely until the second half of next year.”

In November, Perth led the way with a 1.9% increase in property prices, while Melbourne, Hobart, and Darwin saw slight decreases. Rental vacancy rates also varied, with Adelaide recording the lowest at 0.3%.

On the other hand, Henry Thai’s piece focuses on five major trends for 2024. Dr. Nicola Powell, Domain chief of research and economics, notes that despite challenges like the ‘mortgage cliff’ and low consumer confidence, the market has shown resilience. The report predicts a potential cash rate cut, increasing demand fueled by population growth, a focus on affordability, progressive housing reforms, and changes in the rental market.

“Domain analysis found population growth has a cumulative longer-term effect on house prices and, therefore, will continue to play a driving role in our housing markets into 2024 and beyond,” says Dr. Powell.

As we step into 2024, it seems clear that the Australian housing market will be driven by a complex interplay of economic factors, regulatory changes, and shifting consumer preferences. The landscape is changing, and buyers, sellers, and investors must navigate these waters with careful consideration and expert guidance.

References:

https://www.abc.net.au/news/2023-12-04/house-prices-state-by-state-breakdown-november/103176606 

https://thepropertytribune.com.au/market-insights/top-five-trends-for-the-australian-housing-market-in-2024-more-demand-on-the-horizon/ 

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