In the dynamic landscape of Melbourne’s real estate market, experts Matt and Dion from Abode Advocacy Group shed light on key factors shaping the trends for 2024.
“Despite over a dozen interest rate rises from the Reserve Bank of Australia in 2023, the market exhibited remarkable resilience,” notes Matt. The increased rates didn’t deter overall growth, signaling a robust market that weathered economic shifts.
Dion highlights, “Growth in 2023 emanated from various facets, but migration emerged as the biggest driver.” The influx of new residents continued to fuel demand, contributing to the market’s vitality.
“Stock levels remained notably low until the latter part of 2023, mirroring trends from the preceding years,” observes Matt. The return to a more normal spring market defied expectations of a regression, sustaining growth momentum.
Looking ahead, Dion mentions, “2024 is shaping up to be a more balanced market, with agents reporting a surge in listings for the first quarter.” This increased supply aims to address demand, potentially fostering equilibrium.
Matt anticipates challenges for homes requiring renovation, saying, “Buyers are cautious about the construction sector’s ability and concerns about rising building material costs.” In 2024, “turn key” homes, requiring no additional work, are expected to thrive.
“The Reserve Bank of Australia remains a pivotal player, with buyer confidence heavily impacted by its decisions,” notes Dion. Any holds or reductions in interest rates based on inflation numbers would likely be welcomed by the market.
Matt emphasizes, “Banks tightening lending criteria in 2023 led to reduced lending for some buyers.” Looking forward, Dion suggests, “Loosening lending criteria in 2024 could significantly boost buyer confidence, stimulating market activity.”
