2024 Australian Property Market Insights: Navigating the Boom

Published: 9th February 2024

G'day, mates!

As we step into 2024, the Aussie property market is already making waves, promising a year brimming with opportunities and surprises. From the bustling auction floors to the strategic boardrooms of major banks, the landscape is shifting in ways that could redefine your next property move.

Whether you're a seasoned investor or eyeing your first home, this latest scoop for the week ending 09 February '24 is your gateway to understanding how these changes could shape your future in property wealth.

Dive in with us as we unpack the dynamism of Australia's property market, where every statistic tells a story and every trend could be your next big break.

Auction Season Ignites with Unprecedented Momentum

As we dive into the heart of 2024, the Australian property market has kicked off with an electrifying start that's impossible to ignore. The first major auction weekend has set a precedent, with CoreLogic reporting a staggering 74% clearance rate from 1,671 auctions. This isn't just a strong start; it's the second-best commencement to a selling season since CoreLogic began its records in 2008.

Tim Lawless, CoreLogic's head of research, attributes this surge to the optimistic sentiment fueled by low inflation and the potential for early rate cuts. Cities across the nation are feeling this wave of enthusiasm, but Adelaide and Sydney's Northern Beaches have particularly stood out, boasting clearance rates of 77.6% and 82.4%, respectively.

Crowd participating in a 2024 Australian property auction event.

Banks Respond with Competitive Fixed Rates

In a significant shift within the financial landscape, Australia's leading banks have embarked on a competitive journey, slashing their fixed interest rates in a clear nod to an evolving economic environment. This move, led by financial stalwarts such as Macquarie, AMP Bank, Bendigo, Adelaide Bank, and the Bank of Queensland, signals a market bracing for change, with fixed rates now enticingly below the 6% threshold for those ready to commit.

Strategic Rate Cuts: Spearheaded by major banks, signaling anticipation of economic shifts.
Below 6% Threshold: Fixed rates now more appealing for two to three-year commitments.
Growing Confidence: Banks foresee a potential decrease in the cash rate, reflecting a strategic adjustment to future market conditions.

Graph illustrating declining fixed interest rates in Australia's banking sector, 2024.

Australians Are Borrowing More Than Ever

The Australian dream of property ownership is driving borrowing levels to unprecedented heights, with record-breaking loan sizes across Queensland, South Australia, and Western Australia. This trend underscores a robust desire among Australians to invest in their future through property, supported by a conducive financial and demographic landscape.

Record-Breaking Loans: Queensland leads with an average home loan size of $572,439.
Nationwide Trend: South Australia and Western Australia follow closely, highlighting a widespread commitment to property investment.
Supportive Factors: A stable interest rate environment and population growth fuel this borrowing surge.

Australian family celebrating new homeownership, reflecting the 2024 borrowing surge.

Transaction Numbers Indicate a Resilient Market

Despite a constrained supply, the Australian property market has shown remarkable resilience, with transaction numbers soaring in the latter part of 2023. This increase in property transactions reflects a market buoyed by optimism and confidence, setting the stage for a strong recovery in 2024.

Significant Uptick: The December quarter of 2023 saw the highest number of transactions for any quarter in the year.
Over 670,000 Properties Sold: A testament to the market's strength and buyer confidence.
Diverse Transactions: Activity spans across luxury and accessible homes, indicating a broad-based recovery.

Collage of diverse Australian homes sold in 2023, symbolizing a robust market recovery.

Navigating Your Property Journey with Rupali Rastogi

As we look ahead, the question on everyone's mind is whether this early-year exuberance is a fleeting moment or a lasting trend. The data speaks volumes, but the stories behind each auction win, each family securing their dream home, and every investor expanding their portfolio are what truly define the Australian property market's vibrancy.

Rupali, your independent Buyer’s Agent in Property Investment, here, reminding you that while staying informed is crucial, taking action is what truly shapes your future. If you're feeling overwhelmed by the market's dynamics or simply curious about how these trends can work in your favor, I'm here to help.

Whether you're considering your first investment or looking to expand your portfolio, let's have a chat about your personal circumstances and how property investing can work for you. Book a time with Rasti at https://getrare.com.au/ready or join us at one of our educational workshops to learn more about navigating the property market: https://getrare.com.au/workshop.

Rupali Rastogi, Your Independent Buyer’s Agent

The journey to property wealth is a path best travelled together. Let's embark on this adventure, armed with the latest insights and a strategy tailored just for you.

Disclaimer: While the content we've shared is chock-full of information, remember it's general in nature. Your financial journey is unique, so it’s crucial to have a yarn with your own adviser before making any moves. This isn't personal advice, just a bit of friendly wisdom to ponder. Always tailor your decisions to your individual situation for the best outcomes.