{"id":5358,"date":"2023-12-07T09:51:34","date_gmt":"2023-12-06T23:51:34","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5358"},"modified":"2023-12-07T09:51:34","modified_gmt":"2023-12-06T23:51:34","slug":"whats-tipped-for-house-prices-in-2024","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/whats-tipped-for-house-prices-in-2024\/","title":{"rendered":"What\u2019s tipped for house prices in 2024?"},"content":{"rendered":"
As we turn the page on 2023, let\u2019s take a quick rear mirror look on how home values moved over the past 12 months.<\/p>\n In a year that saw five official rate hikes, and a cost of living squeeze thanks to\u00a0high inflation<\/a>, home prices still jumped by\u00a07% nationally<\/a>.<\/p>\n Several cities eclipsed those gains, with double-digit price growth in Sydney (up 10.2%), Brisbane (10.7%) and Perth (13.5%).<\/p>\n But it wasn\u2019t just price growth that took everyone by surprise.<\/p>\n The\u00a0speed of home sales<\/a>\u00a0was also astonishing, with plenty of suburbs in Perth, Sydney, Brisbane and Melbourne selling houses in as little as eight to 25 days on average.<\/p>\n Well, higher interest rates are starting to take a little heat out of the market.<\/p>\n According to\u00a0CoreLogic<\/a>, home values across Australia rose 0.6% in November \u2013 the smallest monthly gain since early 2023.<\/p>\n But here\u2019s the rub.<\/p>\n The factors that pushed prices higher in 2023 are still in place, and plenty of experts are tipping house prices will keep rising in the new year.<\/p>\n Three main drivers look set to support house price growth in 2024, including:<\/p>\n 1. Strong population growth:<\/strong>\u00a0Population growth is rebounding strongly, driven by high immigration levels. More people generally means more demand for housing.<\/p>\n If you\u2019re not convinced, a\u00a0recent Domain report<\/a>\u00a0says \u201cunprecedented\u201d population growth will exert \u201cextraordinary upward price pressure\u201d on the property market.<\/p>\n 2. A housing undersupply:<\/strong>\u00a0On the supply side, we\u2019re just not building enough new homes.<\/p>\n Australia\u2019s housing shortage made headlines through 2023, and it doesn\u2019t look like it\u2019ll get better any time soon. Building approvals for new homes are reported to be well\u00a0below average levels<\/a>.<\/p>\n 3. A rental market that\u2019s as tight as a drum:<\/strong>\u00a0Anyone looking for a rental can face an uphill battle. Vacancy rates are at record lows, making\u00a0rental conditions tough<\/a>.<\/p>\n This could encourage more people to buy a place of their own through one of the government\u2019s low deposit buying schemes.<\/p>\nIf buying a home is at the top of your wish list for 2024, don\u2019t miss our rundown on how the property market has fared in 2023 \u2013 and why the new year is shaping up as potentially another big year for real estate.<\/strong><\/p>\n
Will property values keep rising in 2024?<\/h3>\n
Three factors that could drive prices higher<\/h3>\n