{"id":5260,"date":"2023-05-25T08:43:00","date_gmt":"2023-05-24T22:43:00","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5260"},"modified":"2023-05-25T08:43:00","modified_gmt":"2023-05-24T22:43:00","slug":"is-the-property-market-starting-to-rebound","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/is-the-property-market-starting-to-rebound\/","title":{"rendered":"Is the property market starting to rebound?"},"content":{"rendered":"
Anyone with an eye on the property and finance market over the past few years has seen their fair share of thrills and spills. It\u2019s been anything but uneventful.<\/p>\n But with the RBA\u2019s rapid-fire rate hikes slated to peak in 2023, is there a property upswing afoot?<\/p>\n Westpac\u2019s economists seem to think so \u2013 they\u2019re predicting that the\u00a0housing correction is winding down<\/a>. The bank forecasts that Australian property prices will grow by 5% in 2024 after stabilising throughout 2023.<\/p>\n So this week we\u2019ve looked into data from some of Australia\u2019s leading property market and finance institutions.<\/p>\n The RBA has raised the cash rate an eye-watering 11 times in 12 months, with the official rate reaching 3.85% in May 2023.<\/p>\n Understandably, this has made some would-be buyers gun-shy when it comes to pulling the trigger on applying for a home loan and buying a house.<\/p>\n But Australia\u2019s four major banks have tipped that 2023\/2024 could see the cash rate start to decline. Here\u2019s what they\u2019re each predicting:<\/p>\n Commonwealth Bank:<\/strong>\u00a0peak of 3.85% reached, and will drop to 2.60% by August 2024.<\/p>\n Westpac:<\/strong>\u00a0peak of 3.85% reached, and will drop to 2.10% by May 2025.<\/p>\n NAB:<\/strong>\u00a0peak of 3.85% reached, and will drop again in 2024.<\/p>\n ANZ:<\/strong>\u00a0peak of 4.10% by August 2023, then will drop to 3.85% by November 2024.<\/p>\n So, whichever financial institution you choose to listen to, it looks like we\u2019ve either reached the cash rate peak, or are very close to it. And what goes up must (hopefully) come down.<\/p>\n In 2022 we saw national property prices take a small, but not insignificant, hit.<\/p>\n In response, sellers started waiting it out for a better price, creating a slim-pickings situation for house hunters.<\/p>\n However, Property Investment Professionals of Australia (PIPA) chair Nicola McDougall has stated that\u00a0property prices look to be stabilising<\/a>, partly due to the low volume of housing stock for sale.<\/p>\nNavigating the Australian property market over the past year has felt like standing on shifting sands. But is the market starting to regain stability? And if so, what can you do now to make sure you\u2019re ready to buy?<\/strong><\/p>\n
The big four banks\u2019 cash rate predictions<\/h3>\n
Property prices are back on the move<\/h3>\n