Australia’s Property Market on the Rise: Insights and Predictions for 2024

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In the ever-evolving landscape of Australian real estate, a recent surge in property prices and robust market performance has captured the attention of investors and homeowners alike. Drawing insights from industry experts like Michael Yardney, and data from leading research firms, the outlook for 2024 presents a fascinating picture of growth and resilience.

Michael Yardney, a seasoned property strategist, emphasizes the resilience of the housing market despite economic uncertainties. “Our housing market has defied many doomsday forecasts,” Yardney explains, highlighting an 18-month streak of rising values and record-high home prices. This recovery, described as V-shaped, underscores the market’s quick rebound from the downturn experienced in early 2023.

The auction clearance rates and rising buyer sentiment, including a noticeable fear of missing out (FOMO), further illustrate the market’s strength. These factors are historically indicative of future housing trends, suggesting continued growth.

Yardney is not alone in his optimistic outlook. Major banks have also weighed in with their forecasts. The ANZ predicts a 6-7% rise in capital city housing prices in 2024, with Brisbane, Perth, and Adelaide expected to outperform due to a prolonged shortage of available homes. The Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB) offer similar forecasts, with expectations of a 5% average rise across capital cities.

Oxford Economics provides a broader perspective, forecasting property prices over the next three years, reinforcing the sentiment of sustained growth. This aligns with Yardney’s advice to investors: “You can always beat the averages by investing in the right property in the right location,” he advises, suggesting long-term value in gentrifying suburbs and properties with potential for refurbishment or redevelopment.

CoreLogic’s latest stats bolster this positive outlook, reporting a 0.6% rise in the national Home Value Index as of February, marking the strongest monthly gain since the previous year. Dr. Andrew Wilson of My Housing Market notes, “house prices were higher again over July with segments of the national market continuing to report robust results.”

The property market’s dynamics are driven by multiple factors, including consumer confidence and supply and demand. The current low supply relative to demand, coupled with strong population growth and limited new building developments, suggests prices may continue to climb.

In terms of economic influences, while interest rates are expected to remain high due to persistent inflation, the potential for rate cuts in 2025 could ease borrowing costs and further stimulate the market.

The overarching narrative for Australia’s housing market in 2024 is one of opportunity and growth, supported by strong fundamental drivers and a resilient economic backdrop. As Yardney concludes, “property offers countless opportunities to improve your results through your own time, skills, and knowledge.”

As the market continues to evolve, staying informed and strategic will be key for those looking to capitalize on Australia’s thriving real estate landscape.

References:

https://propertyupdate.com.au/australian-property-market-predictions/