Property prices are tipped to keep rising in 2024, although the pace of growth will vary widely from state to state.
PropTrack economic research director, Cameron Kusher, says with interest rates climbing a record 425 basis points since May 2022, maximum borrowing capacities have now reduced by more than 30% and mortgage servicing costs have surged. As a result, he expects price growth will be slower in 2024 than in 2023.
“In saying that, we are anticipating persistent strong demand for housing, limited new housing construction, and an expectation that total listing volumes will remain low with uncertainty around whether new listing volumes will be as strong as they have been over the second half of 2023,” he says.
“These factors will likely lead to further price gains.”
Senior economist, Eleanor Creagh, says while home price growth will slow, tight rental markets will continue.
“With vacancy rates historically low, weekly rents are growing at a fast pace. There is nothing meaningful on the horizon to suggest a sufficient increase in supply of available rentals, which is the release valve we need,” she says.
“With continued strong demand to rent, tight rental markets and upward pressure on rental prices are likely to remain in 2024.”