January Market Update

In 2024, the property market will continue to recover, but at a slower pace, causing housing markets to be fragmented due to affordability issues. Interest rates will initially peak and remain high due to stubborn inflation, but are expected to eventually fall later in the year, encouraging more housing investment. 

The property market will become even more fragmented, with different areas and property types behaving differently. Demographics facing cost-of-living challenges may struggle to enter the property market or borrow, negatively impacting the lower end of the market. First-time buyers who borrowed to their maximum capacity may have difficulty meeting mortgage payments as interest rates rise or their loans convert to variable rates.

In November, Adelaide’s housing values reached a new record high, recovering from a significant drop earlier in the year. Despite a 20% increase in new listings, the number of homes available for sale remains significantly lower than the average for this time of year, indicating a tight housing market. As vendor activity increases and buyer activity slows down, it is expected that conditions may shift in favour of buyers in 2024.

Adelaide’s housing market is expected to perform well this year, with home values projected to increase by 6.2% over the next 12 months. This growth rate is similar to that of Perth, while Brisbane is expected to experience slightly higher growth at 6.5% in 2024.

Whether you’re a buyer, seller, or investor, stay tuned to see what the next months bring to the Australian and South Australian property markets! 

For all your conveyancing needs and professional assistance, please contact us:
Phone: 0413 783 166 
Email: sue@easternconvey.com.au