Key takeaways

Currently Australia’s housing is so undersupplied that I’ve rarely encountered a supply-demand inflection point like this that requires such attention. And it’s only going to get worse.

Sure there are unknowns and risks ahead, but there are also five certainties for our housing markets:
1. Inflation will stick around a little longer than the RBA would like
2. Interest rates will eventually fall, but propably not till next year
3. The scarcity of dwellings for both purchase and rent will not go away any time soon.
4. Rents will keep rising
5. Astoundingly good demographics and strong population growth will keep fuelling demand for housing.

This creates a window of opportunity before falling interest rates create a property market reset.

While inflation has crept up a tad in the June quarter, it’s likely that interest rates have peaked, and in due course consumer confidence will return and the markets will continue their upward trajectory.

Here are some trends to watch for over the balance of 2024:-
1. The recovery phase of the property market cycle will continue but the markets will remain fragmented –
2. Our property markets will become more fragmented varying state by state.
3. Interest rate will fall eventually but now this may not happen till much later in the year or early next year.
4. Strong migration will continue to underpin our housing markets.
5. Rents will keep rising strongly.
6. Strategic investors will keep investing in the property market – investor finance is up 31% over the last year
7. Our economy will remain robust, and while the unemployment rate will rise the total number of Aussies employed will keep growing .

Source: propertyupdate