A rebound in consumer confidence is expected to encourage more people to put their homes on the market
Property prices experienced a surge last year due to a significant decrease in the number of homes available for sale, reaching a three-year low. However, experts say a rebound in consumer confidence is expected to encourage more people to sell their homes in 2024, potentially stabilising the market.
The drop in the number of homes for sale coincided with a rapid increase in property prices, which was surprising given the backdrop of rising interest rates.
As the number of homes on offer returned to levels in line with the 10-year average, the rate of price gains began to slow down, The Australian reported.
Despite the traditional decrease in the number of homes for sale during December, buyers still had more options compared to previous years. This increased choice, coupled with the expectation of more homes entering the market, is predicted to keep a lid on prices in the coming months.
Positive outlook for 2024
Experts anticipate more normal conditions in the housing market this year compared to the past four years, which were marked by the COVID-19 pandemic, a boom in 2021, and rapid increases in interest rates in 2022. While positive growth in home prices is expected, it is likely to be slower than in previous years, The Australian reported.
Buyer demand remained strong in 2023, despite challenges such as higher loan repayments, lower borrowing capacity, and worsening affordability. Auction numbers from real estate agency Ray White indicate that bidders were actively participating, with an average of 2.5 to three bidders raising their paddles.
Regional variations in housing market trends
In cities like Brisbane, Adelaide, and Perth, the number of homes on the market remained below the 10-year average, contributing to continued strength in property prices.
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On the other hand, cities like Sydney, Melbourne, and Canberra have seen a return to more normalised levels of home availability, The Australian reported.
Factors influencing the housing market
Several factors are expected to influence the housing market in 2024. The rebound in consumer confidence, along with the potential for two rate cuts during the year, could contribute to further price growth.
However, the availability of more properties for sale is seen as a crucial factor in stabilising the market and preventing excessive price increases.
Divergent predictions for price gains
While some market analysts predict gains of between 1% and 5% nationally, other experts suggest that price growth could exceed 10% if certain conditions are met, such as rate cuts and an increase in the number of properties for sale, The Australian reported.
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