This year in real estate: Excitement stirs as market expected for 2024 bounce back
Following a tumultuous year for the real estate market nationwide in 2023, largely thanks to the cycle of interest rate hikes, 2024 sees the potential for volatility to stabilise as inflation, cost of living, and interest rates remain the hot topic of contention for all within the real estate ecosphere.
The general consensus among real estate pundits is that 2024 could mark a year of two halves, with buyers prepared to hold tight to see the Reserve Bank of Australia’s direction for now and into the future, with the expectation that mid-to-late 2024 could see interest rates begin to decline after a cycle of upswings.
Inflation is also anticipated to decline alongside interest rates; however, an adjustment period is set to ensue following the aforementioned factors due to the slower-moving cost of borrowing and repayments, which is expected to carry over into 2025 where more sizeable shifts in the real estate dynamic are projected to occur.
Specifically for Hobart, after a year of price downturn which saw the median dwelling drop 3% in value, institutions such as NAB, ANZ and KPMG are optimistic that the housing market can perform anywhere from a 3-11% bounce back, with the sentiment extending into 2025.
Cited as a city and region that ‘massively outperformed’ during the pandemic, a recalibration of sorts was seen throughout 2023 as house prices adjusted to a level of normality, which adds a sense of excitement to the property market as the accessibility is growing for individuals intent on entering.
In terms of rentals, Devine Property offers an exciting portfolio of opportunities, featuring brick-and-mortar storefronts and factory locations, which present a unique opening in the traditionally highly competitive market. Additionally, a host of high-profile leasing agreements have been sealed by the team, which indicates the strength of rentals within the region.
2024 is promising to be an exciting time for real estate following what has been a difficult period namely due to inflation, interest rates and the pandemic, however, there is light appearing on the horizon, with the expectation that the barriers will reduce, and returns will again increase creating a positive shift for this year and into the future.