Login
ISCOVER
From rate cuts to construction levels, 2024 will bring a mix of good and bad news, according to an industry expert.
Mathew Tiller, head of research at LJ Hooker, has forecast a balanced market for 2024 thanks to a gradual increase in stock level.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
From downsizers to upsizers, tenants to developers, Mr Tiller believes that a vast array of buyers will make 2024 the year they transition out of the rental market.
“More home owners will look to capitalise on the recent strong price growth and take the equity to upgrade their homes or downsize into retirement,” Mr Tiller forecast.
“Additionally, more mortgage holders who are struggling with repayments will also look to sell, now more confident that they can sell with some equity in place.”
Over the past 12 months, one of the biggest concerns on Australians’ lips has been mortgage rates. Are owners set to see a reprieve in the year to come?
According to Mr Tiller, the outlook for a rate downswing is positive, but it may take longer than some commentators are anticipating.
“While recent events, particularly comments from the US Federal Reserve, have seen the market now pencil in rate cuts earlier in 2024 than expected, the most likely outcome is for a long period of rates on hold, with rate cuts closer to the end of 2024,” stated Mr Tiller.
He noted that recent inflation levels and employment data strongly suggest that the Reserve Bank of Australia is nearing the end of its rate-hiking cycle, but believes Australians should not get their hopes too high about a decrease anytime soon.
When it comes to the rental market, Mr Tiller predicted that rents will continue to rise, albeit more slowly than in 2023. With ongoing pressure placed on household budgets, Mr Tiller stated that the new year may see an increase in young people moving back in with their parents and a growth in rentvestors.
As more listings come onto the market and the gap between houses and apartments continues to narrow, Mr Tiller reported that buyers will continue to seek out affordability.
“Likely hotspots for 2024 will be suburbs where values have steadied or fallen during the past year,” he stated. “Also, suburbs that have a median price that is better for the budget compared to neighbouring suburbs should see a solid demand.”
Despite a gradual increase in listings, Mr Tiller warned that the supply/demand imbalance is unlikely to be corrected anytime soon.
He stated that a lack of new housing being constructed will continue to be a significant issue for the nation’s housing market over the next year.
[RELATED: Time to save for a house deposit soars: PEXA]
JOIN THE DISCUSSION