Home prices are expected to continue rising in 2024, though the pace of growth is set to keep slowing.
In addition to supporting factors like record net overseas migration, tight rental markets, low unemployment, and home equity gains, from the middle of 2024 we’ll see the commencement of stage three tax cuts, which are most beneficial for higher income earners. This could lead to increased demand for higher priced housing.
High-deposit buyers are more insulated from the higher interest rate environment and will likely continue to make up a higher share of the market in 2024, and play a part in keeping prices elevated, despite higher interest rates.
The latest PropTrack Outlook Report outlines our forecasts for price growth in the year ahead, and we expect national home prices to climb between 1.0% and 4.0% in 2024.