PropertyBuzz, your daily dose of property news.
Rental listings hit historic lows, a new state reigns supreme in Australia’s economy, and what do real estate agents believe will happen to property prices in 2024?
Welcome to Property Buzz! I’m Juliet Helmke. Today is Tuesday, 30 January.
– Total Rental property listings on realestate.com.au in December 2023 were 30 per cent below the decade average, according to the firm, showing just how tight the rental market has become
– New listings also decreased, dropping 4.6 per cent from December 2022 and 20 per cent lower than the ten-year average for the month.
– The firm also reported on advertised rent, revealing that the median price of a rental rose a further 11.5 per cent over the year to $580 per week in 2023, after jumping 15.6 per cent in 2022. With no easing of the rental crisis in sight, prices are expected to continue to rise, albeit at less of a rapid pace as the country hits an affordability ceiling.
– And South Australia has ranked first in the latest CommSec State of the States report, marking its first time at the top of the economic performance leaderboard in the report’s fifteen-year history.
– The state led in four of the eight key economic indicators: real economic growth, unemployment, construction work, and dwelling starts. Victoria and New South Wales tied for second place.
– Queensland fell three places to seventh, while the Northern Territory ranked last. CommSec’s chief economist noted that rising interest rates, higher borrowing costs, and price pressures have slowed economic performance.
– Other states excelled in specific sectors: Western Australia led in population growth, Queensland in home loans, Tasmania in equipment spending, and the Australian Capital Territory in retail spending.
– Finally, a poll of the real estate industry revealed that professionals in the sector are cautious about predicting a positive property year due to concerns about interest rates, according to CoreLogic.
– Despite an 8 per cent rise in median home values in 2023, only about half of agents predict economic growth and close to 60 per cent forecast a rise in home prices in 2024.
– High interest rates, cost-of-living pressures, and low housing stock are among the top concerns for agents, with 71 per cent citing interest rate fluctuations as the primary market driver.
– Despite short-term concerns, agents remain optimistic about the long-term prospects of Australia’s housing market, although currently the research reported “mixed sentiment” from professionals in the industry.
That’s Property Buzz for today.
See you again tomorrow, 31 January, for your daily dose of Property Buzz.”