The Australian property market is shaping up to have an “historically strong year” in many markets.
PropTrack senior economist Eleanor Creagh says nationally home prices rose by another 0.35% in September which means prices are up 4.31% for the year to date. The biggest driver of the 2023 recovery has been the “subdued listings environment” which resulted in buyers completing for too few properties and record levels of migration. “Home price growth has not only turned around quicker than many expected, but 2023 is shaping up to be a historically strong year in many markets,” Creagh says.
“Looking ahead, population growth is rebounding strongly and given the shortage of new homes, prices are expected to rise with more markets reclaiming peak levels after recouping last year’s fast falls.” Creagh says many are now expecting interest rate cuts in 2024, which means buyers will be able to borrow more and mortgage services costs will drop, which will likely fuel continued price rises.