Constricted supply casts a long shadow over 2024. An easing cash rate may open up demand, pushing prices higher. 2024 to remain a positive year for the market, with varied results city by city.
Supply shortages, interest rate worries, and construction challenges are among the themes expected to carry through to 2024.
“2024 is shaping up as a positive year in residential real estate, continuing the momentum that built up in key markets as 2023 evolved,” said Ryder.
“Just as 2023 defied the forecasts of economists and news media, delivering solid price growth in most jurisdictions, 2024 will do better than the pessimistic predictions that emerged late in 2023.”
Ryder added that the major factor upending predictions of property price decline in 2023 was a market shortage. This was exacerbated by considerable population growth, along with the lack of forthcoming supply due to ongoing building and construction challenges.
What will drive house prices up in 2024?
Multiple factors could boost Australian property prices in 2024.
“It appears that inflation is moderation more quickly than the central bank had forecast, which augurs well for lower interest rates this time next year,” said McDougall.
“While property prices in many areas are likely to continue strengthening next year, reduced interest rates at a time where there continues to be more demand than supply, is set to potentially drive property prices higher again.”