Interest rate moves will most impact Aussie housing in 2024, CoreLogic survey

Real estate analysis
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Most real estate professionals (71%) see fluctuations in interest rates as being the most significant influence on the real estate market in 2024, according to a recent survey by property research firm CoreLogic.

Notably, 59% believe rising interest rates will have the most impact, while 12% anticipate a notable effect from falling rates.

Increased migration and population growth were also seen as significant factors (15%). 

At the local level, the most significant stressor for real estate businesses was identified as the low supply of house stock, with two in five (41%) raising this concern. 

Of course, this is also a worry for would-be buyers because fewer homes for sale means more competition and usually higher prices

Most real estate professionals (46%) expect a 1-5% increase in house prices this year, as per the survey. Many others expect prices to be steady (25%).

There’s also hope among many Aussies, both buyers and sellers, that the official interest rate will drop in 2024 and that might help lower the cost of home loans

Positivity around housing activity and economic growth

Despite the expected fluctuations in the interest rates, the majority of property professionals anticipate 2024 will be positive with 57% expecting some economic growth. 

These survey results are relatively in line with housing market forecasts by the major banks. 

“The broad expectation for housing values in 2024 is that the market will still grow, but at a slower rate than the 8.1% observed in 2023,” says head of Australian research at CoreLogic, Eliza Owen. “Growth in housing demand is expected to slow amid higher cost of living pressures, a higher tax take from bracket creep, and high interest rates.

“There remains a strong mismatch in the supply and demand of dwellings across Australia, and anything that makes buying more accessible, such as a reduction in interest rates, would likely boost buyer numbers. With inflation currently trending just below RBA forecasts, the case for a cash rate reduction is firming up in 2024.”

No matter what’s on the cards for your local property market, a little research can go a long way. Once you have a fix on potential prices in your area, it’s time to review possible home loan options and explore your costs. Start by comparing some of the top home loans with some of the best interest rates on the market below!

Compare top home loans - last updated 19 April 2024

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  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.48% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

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