2 weeks into January I think we can officially say Happy New Year, 2024 has definitely started and it hasn’t wasted much time in getting well into the swing of things.
This past week has seen real estate wake up again after the break, with solicitors back at work, offices open, photographers snapping and we should once again see homes begin to come to market in a fairly normal fashion.
While the crystal ball remains firmly locked away (I am pretty sure it broke sometime in March 2020), this year is likely to hold much of the same we saw in 2023. That is to say, tight supply across both the sale and rental markets, interest rates likely to remain more or less where they are (give or take a rate change) and generally, not enough of anything with a roof to go around.
Our population (thankfully) continues to grow, but our housing stock is not growing at a sufficient pace with it, nor are we likely to catch up in 2024. Land supplies might look fine, but when it comes to what you can buy and own in the next 30 days rather than just signing up off-the-plan, there is a lot less that you can really put your hands on – particularly in the affordable/investment spec end of the market. For anyone that does make the decision to go with the building route this year, I would strongly encourage you to move quickly on your dirt as this is likely to run away quickly. Again.
For tenants, if you haven’t seen an increase in the past 12 months, you almost certainly will soon. Pricing has continued leaping and unfortunately for many, a 10% (or higher) rise is not uncommon, or difficult to justify. That being said, a lot of owners are also understanding the plight of the market and choosing NOT to take advantage, with either minimal or no increases applied in a lot of cases. There is no room for poor behaviour in rental properties though as landlords are spoilt for choice with prospective tenants and unlikely to offer renewals in cases of genuine grievances.
Sellers should continue to see positive signs in the market, with the supply still supporting growth and quick turnarounds. Tradies tied up with flood repair work may make renovations harder though so expect buyers to seek turn-key properties over those that require an update (or more) before moving in.