Westpac Bank’s recent change of heart regarding the Australian housing market forecast is sure to raise some eyebrows. Just a few months ago, they predicted a flat market for 2023. Fast forward a bit, and now they’re expecting a 7% national price increase in 2023, followed by a more moderate 4% gain in 2024. So, what changed? And how will this affect property investors?
The bank cites a few key factors for their revised outlook, including better-than-expected economic growth, a positive near-term outlook for interest rates, and an anticipated easing of the rate cycle beginning in Q3 2024. However, it’s also worth noting that affordability is expected to become a major obstacle to further price growth in the medium term.
Westpac isn’t alone in its change of tune, either. National Australia Bank (NAB) has also recently updated its property market forecast. Just nine months ago, NAB had a rather pessimistic outlook, forecasting a 20% drop in home values. But now, they’re projecting a 4.7% growth this year and a 5% increase in 2022.
It’s clear that the housing market is surpassing expectations, but what does this mean for investors? Faced with an unpredictable market, many investors are left wondering whether they should buy, sell, or simply wait. As property markets continue their upward trajectory, it’s essential to have a trusted team of advisors who can provide holistic wealth creation guidance.
That’s where a comprehensive wealth advisory service comes in handy. Investors benefit most from a team that not only helps build and protect their wealth but also offers tailored financial planning advice. A strategic property plan, for example, enables investors to envision their future goals and make informed decisions in the present.
In addition, with the assistance of a trustworthy buyer’s agent, investors can capitalize on the vast experience and perspective gained from managing billions worth of property transactions. A buyer’s agent can help investors locate their next home or investment-grade property, even amidst rapidly shifting market conditions.
But it doesn’t stop there. A reputable property management service will ensure that tenants remain satisfied and stay longer, resulting in less property vacancies and higher returns for investors. With properties leasing faster than market averages and tenants staying for extended periods, investors can have peace of mind knowing their investment is in good hands.
Looking ahead, the Australian property market seems to be experiencing a formidable upswing that’s catching even the major banks by surprise. While the path may be uncertain, there’s no denying the opportunities that exist for informed and well-advised investors.
So, whether you’re a first-time buyer or a seasoned investor, navigating the current property landscape can be challenging, but it doesn’t have to be. By enlisting a team of skilled professionals who can build a tailored strategy around your individual circumstances and needs, you’ll be well-positioned to make the most of the current market trends. With the right guidance and direction, there’s no reason why you can’t capitalize on these exciting times and continue to grow your wealth through smart property investments.
