Housing Market Forecast for 2024

As professionals, we are well aware that predictions or forecasts do not necessarily mean anything except as a guide on how you approach your career or industry. Nothing is set in stone, and change is the only consistent thing in the world. The housing market, in particular, is the most unpredictable market there is, so at this point, you can merely speculate.

Factors that affect the housing market are supply and affordability. These two factors are interrelated as each one affects the other. Because of the complex landscape, expert opinions are always welcome. If you’re curious about what’s in store for the housing market in 2024, here are a few key things to consider and what these could mean for buyers and sellers.

House Prices

Experts predict that the housing market in Australia will continue to grow steadily through 2024. Over the past year, there were some concerns regarding rising interest rates and tighter lending standards, and despite these concerns carrying on to next year, we can still expect strong demand from both domestic and international buyers. Thus, prices will continue to rise. Some areas, particularly in major cities like Sydney and Melbourne, may see more significant price increases than others, but overall, the housing market is expected to remain stable and healthy. However, unexpected economic or political events should be considered as they could always impact the market, but the current outlook is optimistic.

Supply and Demand

In addition to the predicted steady growth in the housing market, expert forecasts also include that supply and demand dynamics will play a key role in determining prices. Demand may outshine supply in some areas, leading to bidding wars and even higher prices. However, prices may stagnate or even decline in other areas with a surplus of housing stock. It will be necessary for buyers and sellers alike to stay informed about local market conditions and adjust their strategies accordingly.

Mortgage

Looking ahead to 2024, experts see that the Australian mortgage market will continue to experience steady growth. While interest rates may fluctuate, overall demand for housing and mortgages is expected to remain strong. However, it will be necessary for borrowers to carefully consider their financial situation and ensure they can comfortably afford their mortgage payments, as unexpected economic shifts or changes in personal circumstances could impact their ability to repay their loan. Lenders must also remain vigilant in assessing borrowers' creditworthiness to maintain a healthy and sustainable mortgage market.

Competition

In 2024, the housing market is expected to be highly competitive, with strong demand for properties. With the steady growth of the Australian mortgage market, more people will likely be looking to buy homes, which could lead to bidding wars and higher prices. As a result, prospective homebuyers must be prepared to act quickly and make competitive offers to secure their desired property. It will also be necessary for buyers to carefully consider their budget and ensure they can afford the monthly mortgage payments, as competition could drive up prices and make it more difficult to find affordable housing options.