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Will Illawarra Property Prices Go Up in 2024? Expert Insights

Illawarra property prices have seen significant fluctuations in recent years. After rapid growth in 2021 and early 2022, prices in many areas saw a correction in late 2022 and into 2023. According to CoreLogic data, dwelling values across Australia’s combined capitals fell by 8.9% between their peak in May 2022 and January 2023. This leaves many homeowners and potential buyers wondering what the rest of 2024 holds.

While no one can predict the future with absolute certainty, analysing current market trends, expert forecasts, and recent statistics can help give us a clearer picture. Read on as we discuss a few of the factors that will influence Illawarra property prices in 2024.

Factors Influencing Property Prices in 2024

  • Interest Rates: The Reserve Bank of Australia (RBA) plays a crucial role in influencing property prices through interest rates. Higher interest rates make borrowing more expensive, which can dampen demand and put downward pressure on prices. After nine consecutive rate hikes, there’s cautious optimism that the peak may have passed. However, interest rates might remain elevated, impacting affordability and Illawarra property prices in 2024.

  • Inflation: Inflation, or the rising cost of goods and services, can erode purchasing power. If inflation remains high, it could make it harder for buyers to save for a deposit and qualify for a mortgage, affecting demand. While inflation peaked at 7.8% in the December 2022 quarter, it has been moderated in the last few months and is expected to continue to do so into 2025.

  • Economic Growth: A strong economy with low unemployment generally creates confidence and leads to increased demand for housing. Australia’s economic outlook and job market will be crucial factors to watch as inflation still soars and the cost of living is still at a crunching peak.

  • Supply and Demand: The imbalance between housing supply and demand is a fundamental driver of property prices. While construction activity has increased, a persistent undersupply in some markets could support price growth. According to the National Housing Finance and Investment Corporation (NHFIC), Australia faces a shortfall of over 100,000 dwellings.

  • Investor Activity: Investors are a significant force in the Australian property market. Changes in tax policies and lending regulations could influence investor sentiment and their buying power.

What do the Experts Say?

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While there’s no single consensus, here’s what some leading property market analysts are predicting:

  • NAB: Predicts modest price growth nationally after a period of declines.
  • Westpac: Anticipates further declines in 2024, with a potential uptick in value by the latter part of 2024.
  • AMP Capital: Forecasts a rebound beginning towards early 2024.

Important to Note: These are national projections, and localised markets may experience different trends.

What Does This Mean for Homeowners, Buyers, and Investors?

  • Homeowners: If you’re considering selling in 2024, the market may still be in a state of adjustment from the rapid changes of previous years. It’s crucial to:

    • Consult with local experts: Seek advice from real estate agents like the team at Molenaar x McNeice,  specialising in your neighbourhood to understand recent sales trends and realistic pricing expectations. Get a property price estimate here.
    • Consider timing: If you have some flexibility, timing your sale strategically could be beneficial. Markets that experienced more dramatic price drops might see stronger rebounds as the year progresses.
  • Buyers: 2024 could be a good time for buyers, but there are several things to keep in mind:

    • Increased bargaining power: You might have more room to negotiate compared to the peak of the market, especially in areas that saw significant price growth in 2021/early 2022.
    • Affordability is still important: While prices could moderate somewhat, affordability remains a challenge. Ensure you have a sound financial plan, a good deposit, and pre-approval for a mortgage. You can have a chat to our friends at Atelier Wealth for more information.
    • Long-term view: Avoid trying to time the absolute bottom of the market. If you find a property that meets your needs and financial goals, don’t hesitate to act, as prices could begin to rise again later in the year.
  • Investors: For investors, Illawarra property prices in 2024 could present a mix of challenges and opportunities:

    • Potential for bargains: Properties in markets that experienced price declines might be available at more attractive prices.
    • Importance of research: Thorough research is essential. Focus on locations with strong economic fundamentals, population growth, infrastructure development, and rental demand. Consider both potential capital gains and rental yields for long-term investment success.
    • Policy and lending changes: Stay informed about potential changes in regulations or lending criteria that could impact your investment strategies.

The Bottom Line

Predicting the property market is an inexact science. Seek professional advice and focus on your individual financial goals and long-term strategies when making decisions about buying or selling property.

Jordy Woolley
dynamic | innovate | style Jordy’s journey at Molenaar and McNeice epitomises the spirit of innovation. She first joined us as an experienced property manager where she hit the ground running with her fierce drive to redefine what property management can look like. Less than 12 month...View Profile ›
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