Sydney property market forecast for 2024
re you wondering what’s ahead for the Sydney property market in 2024? Well…Sydney’s home values will continue to increase, although a little more slowly than they did in 2023. The surge in properties for sale in Sydney hasn’t yet slowed demand, with prices rising 0.5% in February and 10.6% over the past year.
Both buyer and seller confidence has increased with the thought that potential rate cuts could boost borrowing capacity, giving buyers more money to spend.
Although Sydney’s housing market has clearly turned a corner in early 2023 with prices rising steadily month-on-month, Sydney’s home values have yet to return to their peak.
According to CoreLogic, Sydney dwelling prices rose 24.8% from the onset of COVID-19 to their cyclical peak in January 2022 before suffering a 13.8% fall through to the January 2023 trough.
The latest data shows prices are only -1.9% below their previous peak… so a new records will be set soon.
Of course, there is no “one” Sydney housing market and some areas are strongly outperforming others.
It’s a bit like having one hand in a bucket of hot water and the other in a bucket of cold water and saying: On average I’m feeling comfortable.
Sydney’s listings and clearance rates are low
While Sydney property buyers are back in force, they are currently being cautious - their pockets are shallower and borrowing capacity significantly reduced. But more investors are getting into the Sydney market now recognising that there is a current window of opportunity and that in 12 months’ time, the properties they purchased today will look like a bargain. However, despite the overall caution, buyer demand is still strong which will continue to push Sydney’s property market through its revival. Sellers are also coming back to the market wit total property listings for Sydney are marginally higher than in the same month last year, although the stock of older listings is slimmer so overall supply remains constrained.
Jason Wang
Real Estate Licence 20157938