Where are we with Australia’s property? Westpac offers some insights

Below are a few highlights from the latest Westpac Housing Pulse report, which offers a quick view of the property market, prices, interest rates and general trends.

• Price growth has moderated slightly over the last three months. Westpac expects property prices to post a more subdued 6% rise this year, easing to a 4% rise in 2025. 

• Supply – both 'on-market' and the physical stock of housing – remains tight. 

• Buyer sentiment continues to be caught between deteriorating affordability, which is impacting 'time to buy' and price expectations. 

• RBA: It’s becoming clearer that we are getting closer to an interest rate easing cycle. Westpac expects the RBA to begin easing from September. 

• Affordability: Stretched affordability may dampen the rate cut boost this time around with the investor response likely to be key. 

• Across the states: NSW had the lowest home affordability levels. VIC has also softened but more due to a policy-related overhang of listings. QLD, WA and SA are all posting stronger price gains with supply extremely tight. TAS is still out of step with prices softening.

• Population: All markets continue to show clear tensions between supply shortages – as strong population-driven demand coincides with subdued building – and stretched affordability.

• Sales volumes remain 20% below the previous peaks and 1–1.5% below long run averages as a share of the housing stock. 

• Housing-related sentiment has improved slightly over the last three months although the mix remains unconvincing. 

• Risk aversion is also still extremely elevated, though auction markets firmed a little at the start of 2024.

What can we take away from all this? Sales, rates and home loans

If you’re looking to buy a home in 2024, there are a few things to note: 

Supply

There isn’t a great deal of 'for sale' supply in some areas. This is important because it can mean you might overpay in the wrong suburb. It pays to look at a suburb or town over, where there may just be lower levels of buyer competition. 

Interest rates

Rates are holding, which is good for those needing a home loan. It also seems likely that rates could come down and home loan rates could therefore follow. In this regard, a variable interest rate home loan might make sense. 

Auctions

Auctions have picked up but they don’t seem to be as chaotic as they have been in past years. This sort of thing is hard to predict though, especially as Easter approaches and many would-be buyers typically get in the mood. In short, getting ahead of the peak-time crowds could be a good strategy. 

If your concern is about affordability, the big cities might not be worth your time. There have been some reduced prices seen in regional spots if you’re willing to buy farther afield. 

If you're ready to buy and need a home loan, Mozo's experts handpick some of the best home loans on the market. You can start by comparing a few of the top home loans below.