• 23/06/2024

The Current Forecast for the Property Market in Australia: What Mortgage Brokers Need to Know

As a mortgage broker, you rely on the health of the property market to generate business and help your clients secure home loans. In recent years, the Australian property market has been booming, with prices soaring in many major cities. However, there are signs that the market may be cooling off in some areas, and it’s important to stay up to date on the latest forecasts and trends. In this article, we’ll take a look at the current forecast for the property market in Australia and what mortgage brokers need to know.

Overview of the Australian property market

Before we dive into the forecast, let’s take a quick look at the current state of the Australian property market. Over the past decade, property prices in Australia have risen significantly, particularly in major cities like Sydney and Melbourne. Low interest rates, population growth, and a shortage of housing supply have all contributed to the boom. However, there are signs that the market may be cooling off in some areas, with prices stabilizing or even declining in some markets.

Current forecast for the property market in Australia

So, what does the future hold for the Australian property market? While no one can predict the future with certainty, there are a few trends and forecasts that are worth paying attention to.

Firstly, it’s worth noting that the Australian property market is not a monolithic entity. Different regions and cities can have vastly different property markets, with unique drivers of demand and supply. That said, here are some of the key trends to watch out for:

  1. Slower price growth: After years of rapid price growth, many experts are predicting that the market will slow down in the coming years. Some forecasts suggest that prices could remain relatively stable, while others predict a mild decline. This could be due to a variety of factors, including rising interest rates, tighter lending standards, and a potential oversupply of new housing.
  2. Regional variation: As mentioned earlier, different regions and cities can have vastly different property markets. Some areas, particularly in regional Australia, may continue to experience strong demand and price growth. Other areas, particularly in inner-city areas of major cities, may see a cooling off or decline in prices.
  3. Government policies: The Australian government has introduced a range of policies aimed at cooling off the property market, including tighter lending standards and restrictions on foreign buyers. These policies could have an impact on the market, although it’s not yet clear to what extent.
  4. Demand-side factors: Demand for housing in Australia is driven by a variety of factors, including population growth, employment levels, and migration patterns. Changes in any of these factors could have an impact on the property market.

What mortgage brokers need to know

As a mortgage broker, it’s important to stay up to date on the latest trends and forecasts in the property market. Here are some things to keep in mind:

  1. Be prepared for a potential slowdown: If the property market does slow down, you may need to adjust your business strategy accordingly. This could include finding new sources of business, diversifying your offerings, or tightening your underwriting standards.
  2. Keep an eye on regional variation: Different regions and cities can have vastly different property markets, so it’s important to understand the unique dynamics of each market you operate in.
  3. Stay informed on government policies: Government policies can have a big impact on the property market, so it’s important to stay up to date on any changes or new policies that are introduced.
  4. Focus on the fundamentals: While it’s important to pay attention to trends and forecasts, don’t lose sight of the fundamental principles of good lending. This includes assessing borrowers’ ability to repay their loans, maintaining a diverse portfolio, and managing risk effectively.

Doug Daniell

Guest Contributor

Read Previous

The Skills-Value Matrix by Anil Puri

Read Next

Is Now the time to expand your business and Become a Mortgage Broker

Accredited Broker