PropTrack now expects national home prices to rise by as much as 5% in 2024, up from its previous prediction of 1% to 4% as the market continues to exceed expectations.
The report found that property prices have already risen 2.7% nationally from January to May, and are up 5.9% for the financial year-to-date.
PropTrack’s economic research director, Cameron Kusher said the property market is proving more resilient than expected, given high interest rates and an increase in listings.
“Despite the lift in stock for sale, there has also been a significant increase in sales volumes and subsequently price growth has been stronger than anticipated early in 2024,” he said.
Looking ahead, the stage 3 tax cuts and projected interest rate cuts could boost buyer demand, while the supply of new dwellings is expected to remain low.
“We expect home price growth will be slightly stronger by the end of the 2024-25 financial year than annual growth over the 2024 calendar year, with prices anticipated to rise in the larger markets of Sydney and Melbourne over the next 12 months while slowing in several capital cities.”
