Many economists believe the Reserve Bank will start cutting interest rates in the final quarter of 2024. So if you're thinking about entering the market, should you buy now or wait for those potential rate cuts to occur?
To answer that question, it can be helpful to consult long-term data. During the decade to January 2024, Australia's median property rose 80.1%, according to PropTrack. Prices rose faster in the combined regions than the combined capital cities (92.5% vs 75.7%), while house growth exceeded unit growth (89.4% v 44.4%). But the general trend for all these categories was the same – up.
Domain's chief of research & economics, Nicola Powell, believes buyers should take a longer-term view and not get too hung up about how the market is currently performing.
“When you’re purchasing a property, it’s for a long-term investment and you are going to ride multiple property cycles, and that’s how you build financial wealth. So if I would give any advice, it would be to buy when it’s right for you. Housing markets are complex and often impossible to predict.”
Ultimately, the question or whether to buy now depends on your personal situation and goals. For some, now will be the right time; for others, it will be better to wait. I'm happy to have a chat and crunch some numbers for you, so I can present personalised loan options for your situation.
Get in touch via our website if you’re considering a home loan.
