Looking to sell or buy in 2024? Here’s what you need to know

As the calendar page turns from 2023 to 2024, many are wondering what’s ahead for the property market moving forward.

And it’s a good question, with property prices proving incredibly resilient over the past couple of years.

So if you’re buying or selling, what can you expect in the year to come. Here’s what you need to know…

Market still strong

Predicting what the property market will do next is no exact science. After all, few experts picked the incredible price rises across the country that occurred in the wake of Covid.

What we do know is the market remains strong overall, despite rising interest rates.

According to Domain’s data, the median house across all capital cities has reached a new high of $1,084,855 in 2023, while the regional median house price hit a record $591,139.

They’re also tipping further price growth moving forward into 2024, with a prediction house prices will rise a further 5 to 7 per cent nationally.

Breaking that down into the capitals, Domain expects:

Sydney median house prices to rise 7 to 9 per cent
Brisbane and Adelaide to increase 7 to 8 per cent
Perth to rise by 6 to 7 per cent.
Canberra to increase 3 to 5 per cent
Melbourne and Hobart to rise 2 to 4 per cent

They note the further increases will likely be driven by population growth, a housing supply shortage and the possibility of a relaxation to the lending buffer.

Markets and micro markets

While the overall market might have risen in 2023, the reality is Australia’s property market does not operate at a single speed.

Within it there are regional markets and micro-markets, meaning while some areas continue to increase, others might be recording minor falls or the property prices rises have stalled.

These micro-markets can even operate right down to a suburb level, depending on property supply and demand, and other factors.

That’s why it pays to do your research in advance of any property purchase or sale, looking at what’s occurring specifically in your area or speaking with a trusted advisor about the trends emerging.

Interest rates

Interest rates continue to be one of the big talking points of Australia’s property market, with the Reserve Bank increasing rates from a record low of 0.1 per cent in April 2022 to a 12-year high of 4.35 per cent as of November, 2023.

Those increases have hit mortgage holders hard but so far there’s been little impact on the property market.

There’s also increasing speculation rate rises have now achieved their desired effect, with some tipping the increase might almost be over and rates could even start to decrease in late 2024.

In the meantime there’s also talk the Australian Prudential Regulatory Authority might lower the lending buffer.

Designed to account for possible rate rises when banks assess loan affordability for borrowers, this serviceability buffer currently sits at 3 per cent.

A reduction would see increased borrowing power for home buyers as would any interest rate decrease.

Supply and demand

One of the biggest contributors to Australia’s buoyant housing market has been the issue of supply and demand, and that’s also impacting the rental market.

Over the past year, we’ve seen population growth driven by net overseas migration and quite simply there isn’t enough housing supply in Australia to keep up with increased demand.

For renters that’s meant increased competition for available properties, driving up the price of rental properties and lowering the vacancy rate.

It’s also kept property prices at or near record highs, and there’s little sign this trend will reverse moving forward.

Is it a good time to sell or buy?

So what does that mean if you’re in the market to sell or buy? Good question and it’s one driven primarily by personal circumstances and your goals for the immediate future.

How we can help

If you’re considering making a property move in the year ahead, why not chat with one of our friendly agents on 1300 438 439 to understand the state of play in your local market?

Or feel free to enter your address below to get your instant property estimate.

We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here