As 2023 comes to an end, you may have found yourself thinking about the year ahead. Will 2024 be a good time to buy a house?
Amidst interest rate rises, a well-documented rental crisis and building material shortages, 2023 has brought a sense of doom and gloom to the property market.
This has left many speculating, will the housing market crash in 2024? Fortunately, early property predictions in 2024 points to a housing market that is ready to bounce back.
This blog explores the many reasons why 2024 could bring a reversal of fortune to the property industry, and why you should be ready to buy a house and land package at Exford Waters when it does!
Decreasing interest rates
While most of Australia has spent 2023 waiting for the next interest rate rise with baited breath, things are set to change in 2024.
According to the Domain Property Outlook, economists are in unanimous agreement that interest rates should start to fall over the next 12 months.
With the primary purpose of interest rate rises to curb skyrocketing inflation, the governor of the Reserve Bank of Australia recently confirmed that inflation across the country is already starting to decline. This makes future interest rate rises less likely, which over time will bring much-needed relief to Australian budgets.
While the exact impact of lower interest rates on the property market isn’t clear, lower interest rates will a significant impact on low income households. Reduced expenses alongside more disposable income will give property owners, particularly those buying their first home, greater confidence that they can afford their build, and get started quicker and earlier than they did in 2023.
Generous builder offers
With slower sales and tightening household budgets, many leading Australian builders are offering to help new buyers get their build started as soon as possible.
Some builders are offering incentives and discounts to entice new homeowners to enter the market, with reduced deposits, additional inclusions and landscaping incentives all easing the financial burden on new home buyers.
Whether you opt for house and land package, or purchase the land first to find the right builder later. Building gives you the opportunity to craft your dream home from the ground up.
Be sure to keep an eye on the Exford Waters news page for the latest builder promotions available within the community. To ensure you’re up-to-date with the latest home builder initiatives from the Victorian State Government, such as the Victorian Homebuyer Fund and the Victorian Government’s First Home Owners Grant.
Preparing to buy
So, with all of this mind, and you’re ready to take the first step towards buying a house, congratulations!
The first, and most important step in your homeowning journey, is having a firm understanding of your financial situation. With the Melbourne housing market forecast to remain competitive, it’s important to have your ducks in a row.
Could you place a deposit now? What’s your borrowing capacity?
If you’re looking to take out a loan, some of the factors your lender considers when approving your mortgage include:
- Your personal circumstances, such as income, assets and liabilities when they assess you for a loan.
- Your ability to pay the loan over an extended period of time.
- Your spending habits.
- Any credit cards or Buy Now, Pay Later accounts, even if you don’t owe any money on them.
It is also worth doing a household budget and having an accurate record of your weekly expenses. This will help you determine if you can accommodate mortgage repayments.
Buying at the right time of year
Another important consideration in your homeowning journey; when is the right time of year to buy property?
Believe it or not, the time of year you purchase can affect the overall cost of your property.
Typically, the winter months coincide with a decrease in the property market, as demand is significantly higher in spring and summer. In fact, in the warmer months, prices usually rise as pent-up demand pushes up the sale and auction clearance rates.
So plan ahead and be prepared!
If you have any questions, or want to know more about what life at Exford Waters has to offer, contact our Estate Manager Sarah on 0499 123 119 today!
Disclaimer: our financial advice is general in nature, please seek a professional for additional information.