2024: A Year of Uncertainty

If there’s one word that encapsulates the 2024 property market, it’s bumpy. The year has been dominated by the twin challenges of rising interest rates and persistent inflation. This economic turbulence has cast a shadow of doubt over both buyers and sellers, leading to a sense of uncertainty in the housing market.

As we approach the end of the year, another pressing issue has emerged: the escalating cost of living, particularly energy costs. The vulnerability of green energy has far-reaching implications, impacting businesses, industries, and ultimately, consumers. This increased cost burden is squeezing household budgets and eroding consumer confidence.

A Stormy Forecast for 2025

The current economic climate has left many households struggling. Approximately 35,000 homeowners are now behind on their mortgages, a significant increase from two years ago. This growing financial strain has prompted discussions about the adequacy of the current serviceability buffer, which may need to be reassessed.

Based on these factors, our forecast for 2025 is as follows:

•   Stagnant Property Price Growth: Expect limited growth in property prices.

•   Increased Stock Levels: A surplus of properties on the market may outpace demand.

•   Potential Interest Rate Cut: A mid-2025 interest rate cut could provide some relief.

A Year-End Reflection

We wish you all a joyous and safe holiday season. May the new year bring peace, prosperity, and happiness.

Here’s to a brighter 2025!