It’s a new year; and new year calls for new goals! Do you have property goals in 2024?
As some of us return to work and others enjoy the last few sun-soaked weeks of holidays, the property market remains quiet as many vendors hold off for the summer months.
This can be a good time to do some property research, investigate financing options, or set your property plans and budget in place.
So, if you’re planning a property purchase this year, speak to us about getting pre-approved on your finance so you can put your plans in motion.
Read on to find out what’s in store for interest rates and the property market in 2024.
Interest rate news
This year, the Reserve Bank of Australia (RBA) will undergo significant reforms following the recommendations of the independent review of the central bank in April last year.
Among the changes affecting homeowners, there will be eight monthly meetings to decide on the cash rate, instead of 11. The meetings will be longer, kicking off on the Monday afternoon, continuing on the Tuesday morning.
The RBA will meet and make cash rate decisions on the following dates:
Borrowers can expect the cash rate decision to still be announced at 2.30pm on the Tuesday. Governor Michele Bullock will hold a media conference at 3.30pm explaining the decision.
The December quarter consumer price index is due on January 31. All eyes will be on the figures as an indication as to whether the RBA may lift the cash rate to 4.6 per cent at its first policy meeting of 2024.
Word on the street is that the RBA will likely lower the cash rate in the second half of the year, as inflation continues to fall.
If you’re considering refinancing, get in touch to discuss your options. We’ll check whether you could secure a more competitive home loan with another lender.
Home value movements
In 2023, we saw Australia’s national home values increase 8.1% following a 4.9% drop in 2022.
Some markets fared particularly well – Perth, for example, saw housing values surge 15.2% in 2023 – while others less so. Regional Victoria, for instance, saw values drop -1.6% throughout the year.
December had the smallest gain in national monthly home values (at 0.4%) since prices started increasing in February.
“After monthly growth in home values peaked in May at 1.3%, a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year,” CoreLogic’s research director Tim Lawless said.
“In Perth, Adelaide and Brisbane, housing affordability challenges haven’t been as pressing relative to the larger cities, and advertised supply levels have remained persistently and substantially below average.“
“The cities where home value growth has been lower or negative through the year are showing higher than average levels of advertised supply alongside annual home sales which ended the year below the five-year average.”