Cairns Property News - January 2024

Happy New Year!

The market will change this year, but it’s not all doom & gloom. Here’s a few factors that will help change the 2024 property landscape;

■  Interest rates will be a key factor.
Although another cash rate hike can’t be completely ruled out, the trend towards another rate hike is looking unlikely. Even if interest rates do come down later this year, the lending availability is likely to be kept restricted.

■  Housing affordability is still a big issue.
The latest Housing Affordability Report from ANZ and CoreLogic showed a worsening in affordability. The average household would now take 10 years to accumulate a 20 per cent deposit and the median dwelling value is 7.5 times the median household income.

■  Construction costs are still high.
This is hindering house construction. Builder profit margins remain low and skilled trades along with some building materials remain in short supply. This dynamic keeps property prices high as there’s less supply of houses.

■  Government assistance is on the way, but slow.
The first round of funding from the $10 billion Housing Australia Future Fund is expected to be available in the second half of the year.

I currently have sold all but one of my properties, so I have ample to to focus on yours. If you’re looking to offload a property soon, get me in quick, before I get too busy.

Helping you with your real estate journey
DANIEL SHEEHAN – 0409 265 326