Ready, Set … BOOM! This is the best way to describe the property market from the very beginning of this year. We have found that the strength of buyers’ activity has continued from 2023. Although the property market and buyer activity traditionally remain quite dormant until after the school holidays, at the end of January. This year we have started conducting open homes from the first Saturday in January and the numbers of buyers we are meeting and offers we are receiving are incredibly strong. 

As January wraps up, the property prices appear to have increased since the last quarter and are currently still at a peak. We believe that buyers’ fear of missing out and confidence in the market is fuelled by lower inflation figures. Buyers are gaining confidence as most of them believe interest rates will be unlikely to go up and some even believe that rates will come down this year. 

A recent article that we came across by Michael Yardney gave a great summary of our Brisbane market, here are some of the key points:

• From 2020 to 2021 house prices went up by 45.3%, when rates started to rise house prices fell by -8.9%, however since January 2023 house prices went up by 13.1%
• Brisbane house prices in 75% of suburbs rose by 10% or more in 2023.
• Signs are pointing towards a strong 2024 where property values and rental prices will keep rising. 
• Federal government forecast suggests Queensland’s population is expected to grow by 16% by the time Brisbane hosts the Olympic games in 2032.

We’ve been alerted to some forecasts released by CommBank recently:

• RBA will lower the cash rate by 75 basis points toward the end of 2024 as inflation is expected to come back into the 2-3% target.
• Employment growth is expected to remain positive.
• A slowdown in net migration – as well as consistent and coordinated measures to increase the supply of new dwellings.
• House prices to rise by a further 5% in 2024.

What do we take from these forecasts and what advice do we give our clients?

If you are looking to invest – Based on the above forecast if you are active buyers trying to buy despite feeling the pressure and stress at open homes and multiple offers, don’t be afraid to make strong offers as long as it’s within your budget. The longer you take to secure your home the more you could potentially end up paying in a few months with rising prices.

If you are looking to upgrade or downgrade – This is the biggest challenge for many of our clients who cannot secure finance to buy before selling as we found it’s almost impossible for buyers to secure property subject to sale with other strong offers with fewer conditions. We often recommend clients to sell first with a longer settlement (up to 90 days) providing clarity on the figure they can afford to spend on their next home.

If you are looking to sell – with the huge amount of buyer activity and the fact that they are ready to make offers it appears to be one of the best times to sell that I have personally seen during my long career in the industry. Buyers fear of missing out and knowing that there are so many offers are pushing buyers to offer significantly higher than market value to secure a property. Therefore, despite the forecast saying that growth will increase by 5% this year we have found in the current market with the right strategy you may secure 5-10% more (based on recent similar sales even as recent as a month or two ago).

As always if you would like to discuss further or get more specific advice based on your situation, please reach out anytime as we love to help navigate your real estate plans. We hope you are having a great start to the year!