Australian Property Market Forecast 2023-2024

The Australian property market, once characterized by uncertainty, has defied expectations in 2023. This year has witnessed a remarkable rebound in property prices, with some cities hitting all-time highs. But can this upward momentum continue? In this outlook, we delve into what the next 18 months might hold for the Australian property market.

 

Table of Contents

 

Surprising Property Market Trends in 2023

 

In 2022, as interest rates rose and home prices dipped, pessimistic forecasts predicted a gloomy year ahead. Leading banks even foresaw declines of up to -11.4%. However, 2023 brought a remarkable turnaround. Instead of a historic crash, we've witnessed robust growth. As of July 2023, Australia's median property price has surged by +4.1%, with Sydney leading at +7.6%.

 

The primary reason behind this unexpected growth is the persistent low listings combined with resilient buyer demand, defying the high-interest-rate environment.

 

Changing Forecasts: A Brighter Picture

 

Recent forecasts paint a much more optimistic picture. Both Westpac and NAB have released revised predictions, projecting a promising 18 months. Westpac anticipates a national median price increase of +7%, while NAB estimates close to +5% growth. They foresee steady gains into 2024.

 

Matthew Hassan, Westpac's Senior Economist, stated that the previous bleak outlook, driven by expected interest rate hikes and economic weakening, now appears less challenging. Most banks expect interest rates to peak at 4.10% in June, with NAB forecasting one additional rate hike in November. Looking ahead to 2024, all four banks anticipate a cash rate cut towards the year's end.

 

Factors Influencing the Current Property Market in Australia

With declining interest rate concerns and robust population growth fueling buyer demand, the path to further price growth seems clearer. However, forecasts remain subject to unknown variables.

The upcoming spring selling season introduces crucial uncertainties regarding supply and demand. Signs suggest that sellers are returning to the market, yet buyer appetite has remained strong. The supply-demand balance will determine the market's trajectory.

 

The Crucial Spring Selling Season in 2023

 

As new listings saw a notable boost in July, CoreLogic's Head of Research, Tim Lawless, suggests that a balanced supply-demand scenario could gradually emerge if housing demand doesn't surge concurrently.

 

Currently, selling conditions remain favorable, with prices rising in most markets and a persistent listings shortage. A growing buyer pool is acting with renewed confidence. While market uncertainty exists, it's essential to remember that the property market is always evolving.

 

Local Market Variations

 

Market conditions vary by suburb, influenced by factors like location, property type, and market segment. To make informed decisions, it's crucial to understand your local market intricately. Utilizing free online estimation tools can be a valuable initial step.

 

Thinking of selling your property?

 

In conclusion, the Australian property market has defied 2022's grim forecasts, with promising prospects for 2023-2024. Empower Estate Agents, recently awarded 'Agent of the Year' by ratemyagent, will guide you through this dynamic market. We emphasize the importance of staying informed about local market nuances and conducting thorough research to make well-informed property decisions.

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Please note that forecasts in the real estate market are subject to change, and while the outlook is positive, it's essential to exercise caution and gather relevant information before making any property-related decisions.

 

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Disclaimers: Data provided in this article is of a general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice.