With 2024 well underway, it’s time to look at the state of the real estate market and see what might be to come for the rest of the year.
2023 activity defied expectations, so what’s to come for North Narrabeen, Narrabeen, Elanora Heights, Ingleside, Warriewood and Mona Vale?
Last year’s property market
Predictions around this time last year were for a decline in the real estate market over the course of 2023. Many forecasters were surprised when the market bottomed out early and performed strongly throughout autumn, winter and spring.
In fact, CoreLogic reported the home value index (HVI) rose by 8.1 per cent across the country in 2023. Sydney saw a rise of 11.1 per cent, making the harbour city one of last year’s strongest performers and leaving the median value at $1,128,322.
2024 property predictions
Two factors that led to the rise in the property market last year will continue to affect the market this year.
Interest rates
The big one right out of the gate is interest rates. After 13 interest rate rises in 15 months, there is a lot of interest in what the Reserve Bank of Australia (RBA) will do in the upcoming months.
According to the RBA, the continuous rise in rates was to tackle rapidly rising inflation. In the last few months, though, inflation has slowed, with the result that there is currently a hold on interest rates, with the RBA making no changes at their February meeting.
While interest rates may not start to fall in a way that will provide relief for household budgets until 2025, the hold on rates is likely to see more tentative buyers begin to return to the market throughout the year. Experts are predicting steady value increases as people wait to see what will happen.
Demand
One of the trends that has been powering the real estate market in the past few years despite rising interest rates is that most suburbs have been a seller’s market.
Demand has outstripped supply, so sellers have the upper hand, especially on the Northern Beaches, which is where buyers want to live.
Factors including immigration, a highly competitive rental market and an influx of international investors have kept competition high.
Northern Beaches market predictions
Suburbs like Narrabeen and Elanora Heights have a couple more factors that are making us feel positive about 2024.
Firstly, we are seeing a reversal of the pandemic-related exodus to regional areas. Aussies are reportedly heading back to the city, which is an excellent sign for Northern Beaches’ suburbs.
Our district is evergreen, so an influx of Australians returning to the city means signs look good for sales in the area as the year progresses.
Northern Beaches suburbs performed well in 2023. Narrabeen was a standout performer, with a rise of 18.1 per cent in median house prices over the past 12 months, to $3,162,000 as of January 2024.
There were 21 houses sold in Narrabeen in 2023 with a median of 68 days on the market. Demand is still high and drastically outstripping supply, with realestate.com reporting extremely limited stock.
Statistics aside, we are receiving a steady stream of enquiries from prospective buyers and tenants. This level of interest means we are able to achieve fantastic outcomes for well-presented homes in the area.
Ready to sell your Northern Beaches home in 2024? We’re here to help.