By Gene Fairbanks
Principal
Ray White Bowral
Hey everyone, we’re partnering with The Fold to provide this monthly update on everything real estate in the Highlands.
Every month we’ll be doing a wrap-up of what’s going on, trends and forecasts and going in depth about something topical PLUS sharing the amazing properties Ray White Bowral have on our books for sale and rent.
So, let’s get started!
Latest Market Updates
As we settle into 2024, the Highlands property market is displaying positive signs. With the Reserve Bank of Australia deciding not to increase the cash rate this month, there's a small sigh of relief for many mortgage holders and potential buyers. We’ll take a closer look at what the year might hold for property prices, interest rates, and housing supply. After exploring these predictions, we'll delve into the numbers, comparing property sales in some of our towns and villages this year to last year's figures and the results are quite surprising!
Property Extra
So how has the year kicked off in the housing market? Regional areas like the Highlands continued to see modest growth, and looking ahead, prices are likely to keep growing modestly as interest rates stabilise, more people move to the area, and the low level of building activity continues. According to PropTrack's 2024 housing forecast, home values could increase by between 1% and 4% over the next 12 months.*
So what about the cash rate? In the February meeting the call was made to keep the cash rate target steady at 4.35%. Inflation was also looked at and, despite being under the November forecasts, is still hanging around the high zone. Now, the updated forecast puts inflation at 3.2% by year-end. Economists predict that this will lead to a lowering of interest rates in turn.***
With supply levels of houses staying limited so far this year and construction costs finding some stability, we're not expecting a surplus of homes this year. Owners and potential buyers might also still be worried about interest rates peaking even if economists are predicting otherwise, so that's probably going to keep pushing prices up.**
Speaking of housing supply, the first couple of months of the year typically kick off a bit slow on the listings front, but early data for 2024 in the Highlands is challenging this usual pattern.**** The number of homes being sold in the Highlands in many towns and villages is significantly higher than last year and we’ll dive deeper into this in property extra.
Potential Highlands sellers should really consider making the most of this time as the demand from buyers is strong. There’s actually been a surge in buyers attending open homes since the start of the year, compared to the previous year and auctions and average auction crowds reached 60 people nationally, some 10 per cent higher than last January.**
The Number Crunch
So what does all this mean for Highlanders?
When it comes to getting the lowdown on what's really going on, sometimes you just gotta dive into the numbers. So, we did a deep dive into what got sold and where in the Southern Highlands during January **. And guess what we found? Sales numbers are much higher than what we reported at this time last year for some of our larger towns and villages, have a look.
| Properties sold in January 2024 | Properties sold in January 2023 |
| Bowral- 21 | Bowral- 3 |
| Robertson-6 | Robertson- 2 |
| Yerrinbool-1 | Yerrinbool-2 |
| Moss Vale-19 | Moss Vale-3 |
| New Berrima-2 | New Berrima-1 |
| Kangaloon-1 | Kangaloon-1 |
| Renwick-8 | Renwick-1 |
| Bundanoon-6 | Bundanoon-1 |
| Exeter-1 | Exeter-1 |
There could be a few reasons behind this uptick, and they're mostly positive. High demand leads to more frequent sales, a higher number of houses on the market attracts more interested buyers, and perhaps it could even be a sign of people moving to the Highlands from the cities as they get priced out, as predicted earlier in the year.
This is good news for both sellers and buyers, shining the spotlight on the Highlands as a fantastic spot to buy or sell your home. If you’re considering selling in the Highlands or are looking to move in, these numbers should give you a good indication of what to expect.
****
HOT PROPERTY
Have a look at these gorgeous homes - book an inspection with Geneto take a look at these beauties:
Sources :
* PropTrack Economist Report
**Ray White Now
***Realestate.com.au
****CoreLogic
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