December 2023 Market Update
Interest Rates were kept on hold in December 2023.
The monthly consecutive interest rate increases this year are expected to restrict home buyers' borrowing capacities in 2024, regardless of the December decision.
Ironically, however, some economists predict that growth in property prices will in fact increase over the next 12 months, due to factors such as an increase in overseas immigration, and a shortage of house supply.
What are the big banks saying?
National Australia Bank believes that there will be signs of slowing price growth in 2024.
AMP states that the interest rate hikes in 2023, coupled with the risk of another increase in early 2024, may reduce borrowing capacities by about 2%, keeping buyer demand lower, and further slowing price growth.
The Commonwealth Bank feels rates will continue to rise in 2024 with little effect on property prices and wages will also continue to grow.
In summary, while rising interest rates in 2024 pose a potential challenge to Australia's property market recovery, there is also a combination of factors that may continue to drive price increases.
Francesca Luccitti
Principal
0430 393 396
[email protected]
www.cumberlandrg.com.au
Shop 8, Greystanes Shopping Centre Greystanes NSW 2145
181 Dunmore St Wentworthville NSW 2145