5 Things Home Buyers Must Know in October 2024

Posted By Bill Kim

Buying a home is one of the most significant decisions you’ll make in your life, and understanding the market trends is key to making the right choice.

With the market in flux due to shifting interest rates and strong demand, here’s what home buyers should know this October 2024 to make informed decisions:

1. Interest Rates Are Set to Decline

Interest rates have been a rollercoaster throughout 2023 and early 2024, with increases aimed at curbing inflation. However, there’s good news on the horizon: economists predict that the Reserve Bank of Australia (RBA) will likely reduce rates towards the end of 2024. This easing will not only lower mortgage costs but also increase buyer confidence in the market .

• What it means for you: If you’ve been hesitant to buy due to high interest rates, it’s a good time to start preparing. Talk to your mortgage broker about pre-approval and stay ready for upcoming rate cuts.

2. The Rental Market Is Tight

With a record-low national rental vacancy rate of just 1.02% and continued population growth from migration, finding a rental property is becoming increasingly difficult. This tight rental market is pushing more people to consider home ownership as a long-term solution .

• What it means for you: If you’re currently renting and considering buying, now might be the perfect time. Rising rents are making homeownership more attractive compared to leasing, so purchasing a home could be a smart move both financially and for stability.

3. Government Incentives for First-Time Buyers

October 2024 presents various government incentives to ease the financial burden on first-time home buyers. Grants and schemes, such as the First Home Owner Grant (FHOG), provide financial relief. Many regions also offer stamp duty concessions and low-deposit home loans.

• What it means for you: If you’re a first-time buyer, take full advantage of these schemes. Reach out to your real estate agent or mortgage broker to see what you qualify for and incorporate these savings into your home-buying plan.

4. Regional Markets Continue to Thrive

Regional areas, particularly in Queensland, Victoria, and New South Wales, are still experiencing robust growth. With more Australians opting for a better lifestyle balance, properties in regional areas are becoming increasingly sought after. This demand is driving property prices upwards in these locations .

• What it means for you: If you’re looking to move away from the hustle of city life, regional markets offer more affordable and spacious options, along with the potential for strong capital growth. Consider areas with growing infrastructure and amenities to secure long-term value.

5. The Importance of Pre-Approval

In a competitive market, having pre-approval for a home loan gives you a significant edge. With homes in desirable areas selling quickly, being able to act fast can mean the difference between securing your dream home and missing out.

• What it means for you: Don’t wait until you’ve found the perfect home to sort out your finances. Secure a pre-approval with your lender so you’re ready to move swiftly when the right property comes up.

Conclusion

October 2024 offers a unique combination of challenges and opportunities for home buyers. As interest rates decline and demand for housing remains strong, it’s crucial to stay informed, take advantage of government incentives, and get your financials in order. Whether you’re a first-time buyer or looking to invest, understanding these trends will help you make smarter decisions.