Data shows the housing market recovery is in full swing

The benefits of investing in a recovering property market

The benefits of investing in a recovering property market include lower interest rates, increased affordability for first-time buyers, and the potential for significant capital growth.

Besides being proof positive that the Australian property market is in a recovery phase, the Domain Forecast Report also offers other interesting insights for investors.

According to Domain’s chief of research and economics, Dr. Nicola Powell, we can expect to see prices continuing to rise this year. However, the recovery is expected to be gradual and steady. While Sydney is set to see the strongest rate of growth, there are many different dynamics at play that can impact the market in various ways. These factors include both push and pull factors, such as the lack of supply of homes on the market and the rise in population, particularly due to an increase in migrant numbers.

According to Corelogic research director Tim Lawless, the national Home Value Index (HVI) in Australia increased by 0.9% in July, marking the fifth consecutive month of recovery. This should be welcome news to any investors worried about the future of the market.

By understanding these trends and factors, you can make more informed decisions when it comes to investing in property during this period of recovery.

Housing price forecasts

In the Domain Forecast Report, it shows Australia’s housing market is steadily recovering over the 2023-24 financial year. House prices in Sydney, Adelaide, and Perth, and unit prices in Brisbane, Adelaide and Hobart, could have fully recovered from the 2022 downturn by the end of the next financial year. Adelaide and Perth house prices are predicted to rise slowly and may avoid a downturn.

Final thoughts

The Reserve Bank remained determined to keep a lid on inflation throughout 2023, which saw a raft of rate hikes. It was been welcomed news for investors that the RBA decided to keep interest rates on hold in August as inflation eases.

Economic recovery has been slow from 2020, is likely to result in a slower-than-expected increase in property prices across Australia. That said, the latest Domain Forecast Report provides a great insight into the future of the property market in Australia. While some cities are showing signs of a slower recovery, others are predicted to break new records.

Regardless of where you are looking to invest, the report proves that the market is in the midst of a strong recovery and for those looking to capitalise on this, now is the perfect time to invest. By keeping an eye on emerging trends and taking advantage of the growth opportunity, investors can become successful in their pursuit of a fruitful real estate investment.

At Ironfish, we help investors capitalise on these trends and ensure the best return for their investments. With in-depth knowledge of the market, robust property investment strategies, and a strong team of property investment specialists, we help our clients build a portfolio that will increase in value and generate sustainable wealth for years to come.