By Hari Kishan
Discover the latest insights on the housing market trends in key markets for the year ahead. With mortgage rates expected to fall and central banks cutting interest rates, now is the time to explore investment opportunities in the property sector.
According to a Reuters poll of analysts, average home prices in countries like the U.S., Britain, Germany, Canada, Australia, New Zealand, China, Dubai, and India are set to rise in the coming year. This trend is driven by a combination of factors, including low supply and increased affordability for homebuyers.
While the forecasted price increases are moderate compared to previous years, analysts remain optimistic about the outlook for the housing market. With falling mortgage rates, aspiring home purchasers have a better chance of entering the market, although affordability remains a concern.
Analysts predict that urban home rents will outpace consumer inflation in the next 12 months, highlighting the ongoing challenges in the rental market. However, with supply constraints persisting, many new home buyers may choose to rent instead of purchasing a property.
Looking at specific markets, the U.S. is expected to see a 5.4% increase in home prices in 2024, driven by low mortgage rates and limited supply. Similarly, Australia is forecasted to experience a more than 6% rise in home prices due to tight supply conditions.
Despite these positive trends, some markets like Germany are facing challenges, with house prices expected to fall this year before rebounding in 2025. In contrast, India is seeing demand for luxury properties driving prices higher, offering opportunities for investors.
In conclusion, the global housing market presents a mix of opportunities and challenges for investors in 2024. Understanding the key trends and factors driving price movements is essential for making informed investment decisions in the property sector.
