Australians think these 3 cities are 2024's hottest housing markets

Property experts expect housing values to rise nationally by at least 5% this year, but hearing it from ordinary Australians, too, just hits differently.

According to new CBRE research, 78% of surveyed Australian valuers expect house values to increase over the next year, with the strongest capital growth forecast in Sydney, Perth, and Adelaide. The usual suspects (Canberra and Melbourne) have projected softer growth.

For those in the market for a home loan , the fact that Adelaide and Perth have proved popular could come as a surprise – and a good indication that what buyers think drives much of the market.

If people expect stiff competition in certain places, the increased demand could become a self-fulfilling prophecy and hike prices anyway.

This inflationary mindset also showcases how hard the tight rental market has squeezed Australians, says CBRE. If Aussies are this keen to become home buyers despite the large average mortgage size , then it’s a housing issue, not just a cost issue.

According to CBRE, the most in-demand property types are:

• High-quality homes.
• Recently renovated homes.

There is also a significant hunger from upgraders or downsizers – two segments of the home buyer market that aren’t too affected by high home loan interest rates .

So, what can Australian home buyers take away from this news? There are a few strategies this could support.

Strategy One: Avoid the buyer competition

Walking the other way is easy if you know where the crowd is going. If buyers have decided to head to Sydney, Perth, and Adelaide this year, this could be a great opportunity to buy in the less popular areas for a better price.

Strategy Two: Get in early before house prices rise

As a rule of thumb, Australian house prices rise. If you are in a position to buy sooner rather than later, there’s a simple wisdom in getting in while you can. If you wait, affordability is likely only going to get worse.

So, if you’re shopping for your dream home or investment property in these hot property markets, beating other buyers to the punch might be a good move.

Strategy Three: Check your home equity and refinance

If you already own property in some of Australia’s hottest housing markets, you could be in for a nice boost to your home equity this year. Home equity can be a valuable tool for refinancing your home loan to a lower interest rate, even with the same lender.

You can also use home equity to fund a second property (perhaps in a hot market) or even a vacation. However, using it can extend the life of your existing mortgage and increase your mortgage repayments .