If you’re planning to purchase a home in 2024, your head is undoubtedly spinning with information around future prices, borrowing power and of course, interest rates.
With speculation about rises, falls and challenging borrowing guidelines continuous and complex, we decided to speak with a finance expert around what factors might impact the property market for the rest of the year.
We sat down with Head of Elders Finance, Stephen Gibson for a detailed Q & A to try and clear the clutter around what has happened so far this year in the property and finance sector and what could potentially unfold for the rest of 2024.
What have you seen transpire in the first part of 2024?
The first half of 2024 has shown that many buyers are searching for bargains, expecting that higher interest rates might force sellers to lower their prices. However, many homeowners are cutting their spending and holding onto their properties longer to manage their mortgage repayments. This means there may be fewer deals than anticipated. As we enter the traditional buying season of spring, it’s easy to get swept up in market excitement. It’s more important now than ever that those looking to purchase throughout the remainder of the year, start by determining what they can comfortably afford and stick to that budget.
The big questions are around inflation and interest rates – what are your predictions for rates moving forward?
Predicting future interest rate movements is challenging, as it’s influenced by various factors. The upcoming RBA meeting in November will likely provide more clarity, but even among economists, there’s no consensus on whether rates will rise or fall and when these changes might occur. Key factors such as inflation and employment rates will play a significant role in determining future interest rate adjustments. For now though, it’s a matter of monitoring the situation closely and staying informed about economic updates. This could best be done through a financial professional and/or mortgage broker.
What do you see the banks doing in terms of lending for the remainder of the year?
For the remainder of the year, banks seem to be maintaining a “business as usual” approach. We are observing some competitive pricing in the market, particularly when brokers actively negotiate on behalf of their clients. New clients often receive more favourable rates compared to existing clients. To ensure you get the best possible deal, we recommend engaging with your Elders Broker. They can leverage their expertise and relationships to negotiate on your behalf and help you navigate the lending landscape effectively.
How can people best navigate property and lending for the rest of 2024?
To navigate property and lending effectively for the remainder of 2024, consider the following strategies:
Determine Your Budget – Understand what you can afford and stick to that budget. With the buying season approaching, it’s easy to get caught up in purchasing opportunities and exceed your financial limits.
Be Aware of Market Trends – The first half of 2024 has shown that many buyers are actively seeking bargains, hoping that higher interest rates will lead sellers to lower their prices. However, many property owners are cutting spending and holding onto their properties longer to manage their mortgage repayments.
Evaluate Your Financial Situation – Ensure that you can comfortably manage your repayments. The current economic environment means that people are being more cautious with their spending and are holding onto their properties longer.
Stay Informed – Keep an eye on market trends and interest rate changes, as these will impact property prices and lending conditions.
By carefully assessing your financial situation and staying informed about market dynamics, you can make more informed decisions in the property and lending sectors.
How can Elders Finance help?
Elders can offer valuable assistance through our team of experienced brokers specialising in residential, rural, commercial, and asset finance. Our brokers are dedicated to helping you secure the best possible funding solutions.
Here’s how we can assist:
Negotiating Better Rates – We work on your behalf to negotiate better rates with your current lender.
Exploring Other Options – If necessary, we explore alternative financing options to provide you with a range of choices.
Providing Choice – Our goal is to give you multiple options so you can select the most suitable financing solution for your needs.
Our aim is to ensure you have access to the best rates and most favourable terms available.