Navigating 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’re ready to buy?
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’s been anything but uneventful.
But with the RBA’s rapid-fire rate hikes slated to peak in 2023, is there a property upswing afoot?
Westpac’s economists seem to think so – they’re predicting that the housing correction is winding down. The bank forecasts that Australian property prices will grow by 5% in 2024 after stabilising throughout 2023.
So this week we’ve looked into data from some of Australia’s leading property market and finance institutions.
The big four banks’ cash rate predictions
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.
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.
But Australia’s four major banks have tipped that 2023/2024 could see the cash rate start to decline. Here’s what they’re each predicting:
Commonwealth Bank: peak of 3.85% reached, and will drop to 2.60% by August 2024.
Westpac: peak of 3.85% reached, and will drop to 2.10% by May 2025.
NAB: peak of 3.85% reached, and will drop again in 2024.
ANZ: peak of 4.10% by August 2023, then will drop to 3.85% by November 2024.
So, whichever financial institution you choose to listen to, it looks like we’ve either reached the cash rate peak, or are very close to it. And what goes up must (hopefully) come down.
Property prices are back on the move
In 2022 we saw national property prices take a small, but not insignificant, hit.
In response, sellers started waiting it out for a better price, creating a slim-pickings situation for house hunters.
However, Property Investment Professionals of Australia (PIPA) chair Nicola McDougall has stated that property prices look to be stabilising, partly due to the low volume of housing stock for sale.
Meanwhile, CoreLogic data shows that the three months to April marked the first quarterly boost to national property values since this time last year, with a 1% rise.
Why is this good news if you’re looking to buy? Well, hopefully you’ll soon have more suitable housing options to choose from as owners start to list again.
And with interest rates predicted to decline in 2023/2024, getting prepared now could put you in good stead to buy when the time is right.
Give us a call today
With all the above in mind, getting your pre-approved finance in place now could have you primed to pounce on your ideal home ahead of the next property market upswing.
And if you don’t think your deposit is quite there just yet, keep in mind that a new round of the federal government’s low deposit, no lenders mortgage schemes are set to become available from July 1, which can help first home buyers, regional buyers and single parents crack the market 5-years sooner, on average.
If you’d like to find out more, get in touch today and we can run you through your options and help arrange your finances.
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