As we traverse through the year 2024, the interplay between mortgage rates & housing market significantly influences home affordability. This year mortgage rates have been experiencing a gradual increase due to the economic factors and adjustments made by the Reserve Bank of Australia. For potential homebuyers & investors, the increase in mortgage rates leads to higher monthly payments impacting their ability.
Current Housing Market Trends
Regardless of the increase in mortgage rates, the Australian housing market is experiencing a varied trend. In some of the regions, the house prices are softened offering favourable conditions for the buyers.
Based on the most recent data from the Australian Bureau of Statistics (ABS), rental vacancy rates in regional areas have reached unusual lows, leading to an increase in rental prices.
When we look at the housing finance data as per ABS:
In June 2024, the value of new loan commitments, when adjusted for seasonal factors, was:
The total housing market experienced a 1.3% increase, reaching $29.2 billion. It experienced a significant increase of 19.1% compared to the previous year.
The value of owner-occupier housing increased by 0.5% to $18.2 billion, showing a 13.2% growth compared to the previous year.
Investor housing increased by 2.7% to $11.0 billion, marking a significant 30.2% rise compared to the previous year.
Future Outlook
Looking forward the housing market is expected to remain dynamic along with ongoing fluctuations in economic factors & mortgage rates. While operating in the market, buyers and sellers should stay informed about the market trends to align with their strategies. Similarly, consulting with a real estate expert can help you gain valuable insights and navigate the changes effectively.
In conclusion, we can say that the Australian housing market is marked by a dynamic rental market, rising house prices and increasing demand for regional areas.
Hence, these trends are underpinned by several other factors such as interest rates, population increase and changing lifestyles.
And as the market continues to grow, the real estate market players should be aware of these factors while making informed decisions.
