DECEMBER UPDATE
As we enter the last few selling weeks of 2023 and reflect on the year-that-has-been, we have seen property prices defy expectations and home values remain resilient to high interest rates.
The question now: what does 2024 hold for the property market?
With inflation continuing to trend downwards from a 30-year high in December 2022, and the cash rate on hold at 4.35% until February 2024 thanks to the RBA’s decision earlier this week, Domain predicts five key trends for Australia’s housing market in 2024.
1. Interest rate relief
Thirteen rate hikes over 18 months have left interest rates at a 12-year high and will likely impact buyer affordability in early 2024. However, potential rate cuts, or an easing of the mortgage serviceability buffer later in the year, could result in an upswing in both demand and prices. “By the end of 2024, house and unit prices are forecast to be at a record high,” reports Domain.
2. Affordability
'Bridesmaid’ suburbs previously overlooked by buyers will be in-demand, causing further gentrification of local areas. There will also be a surge in popularity for affordable units, plus Domain predicts a rise in generational inheritance as Baby Boomers help family members into the market.
3. Infill development
Fast-tracking densification via construction of second dwellings on existing blocks will become more accepted and widespread – a huge cultural shift to address our changing demographics and growing population.
4. Population growth
The long-term, cumulative effect of strong population growth will continue to impact rental market supply, and shift some renters to become buyers, Domain believes.
5. Rental growth tipping point
“The trend of Australians renting for longer will continue in 2024, but a tipping point will be reached causing rental growth to slow and some markets to rebalance,” due to people’s, “stretched affordability”. First home buyer incentives will result in some renters become buyers.
On the Blackshaw home front, last week our Blackshaw Gungahlin team raised $57,000 for local children’s charity, the Stella Bella Foundation, taking their total to $254,580 raised since the inception of their charity golf days. A huge achievement and very special way to cap off what has been a trying year for many families, particularly those with seriously ill babies and children.
Because of your support, we are edging close to selling over 650 homes and managing 2300+ rental properties by the end of the year. We can’t thank you enough for choosing Blackshaw and will continue to work hard for you in 2024. We hope you and your family have a safe, happy, and restful festive break and we look forward to helping you across the coming weeks of December, and into 2024.
For any further information or queries please contact your local Blackshaw Real Estate professional.
