The Australian housing market is making a strong comeback, surprising many experts. After a drop in 2022, house prices in Australia are expected to bounce back by 7.7% in 2023 and continue to rise by 4.5% in 2024, as predicted by a survey of 13 economists. What’s unique about this is that it’s happening while the Reserve Bank of Australia (RBA) is increasing interest rates at a fast pace.
Despite the RBA raising interest rates by 4% in just over a year, the Australian housing market is proving to be resilient. This means it’s not as affected by higher interest rates as one might expect, and it’s thanks to the strong Australian economy and demand for housing.
Factors Driving the Housing Market
- There is a shortage of houses in the market, and it’s getting worse. After the pandemic, immigration has resumed, and this has increased the demand for housing. When demand is high and supply is low, prices go up.
- The way experts calculate house prices has changed. This update has made the market look even better than before, encouraging optimism among economists.
Australia’s economy is doing well, with a low unemployment rate (between 3.4% to 3.7%). This economic stability is supporting the demand for houses. With strong job markets and low unemployment, people feel more secure and are more likely to buy homes.
In a nutshell, Australian house prices are on the rise and are expected to continue that trend into 2024. Despite the RBA’s efforts to control interest rates, the housing market remains strong. Keep an eye on the market, but for now, a housing downturn doesn’t seem to be around the corner. It’s a good time for those looking to buy or invest in real estate.
As you contemplate the exciting prospects of the Australian housing market in the coming years, remember that you don’t have to navigate this journey alone. At Maverick Finance, our dedicated team of experts is here to support you at every step of your property journey. We are committed to helping you achieve your property dreams and providing expert guidance tailored to your unique needs. Don’t hesitate to contact us!
Maria Papa is a senior property and finance expert specialising in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au.
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