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11 December, 2024 / Category: Blog
Looking back on 2024.
We won’t sugarcoat it—2024 has been the most challenging year for us since we began Infolio in 2008. We’ve faced unprecedented hurdles from every direction, with negotiations being a standout challenge. Vendors have held firm on high price expectations, while buyers have remained cautious, seeking lower deals. Finding common ground has, at times, felt nearly impossible.
On top of this, the market has suffered from a significant lack of quality stock. Many vendors who don’t need to sell are holding onto their properties, leaving a scarcity of A-grade family homes in the sought-after blue-chip areas we buy in.
Adding to the strain, state government tax changes have hit investors and holiday homeowners harder than ever before. We’ve had difficult and emotional conversations with some of our investor clients who are striving to retain their properties for long-term wealth creation but are being stretched thin. The burden of rising interest rates combined with substantial tax increases has been overwhelming for some.
While we believe we’ve reached the bottom of the market, the key question we should be asking is: how long will we stay here?
What’s Ahead for 2025?
We believe 2025 will bring a shift in sentiment and market conditions, though the recovery will be slow and steady.
The first half of the year may feel much like 2024 as we wait for interest rates to ease. There will be attractive buying opportunities for those with the means and the motivation to act.
We remain confident that interest rate cuts are on the horizon in 2025, a view supported by forecasts from the big four banks, which all predict reductions in the first half of the year (between February and June 2025). While this timeline is slightly later than we initially anticipated, it offers a much-needed light at the end of the tunnel.
When Should You Buy?
If you’re looking to scale up, early 2025 is the time to act. The best value can be achieved while the market remains soft, as the price gap between higher-end and mid-range properties is at its narrowest.
We expect confidence to bounce back once we see one or two rate cuts. Sellers and buyers who have been holding off will re-enter the market, leading to a return of quality stock. However, with this renewed activity will come increased competition among buyers and, in turn, increased prices.
For those looking to seize opportunities sooner than 2025, there are some excellent off-market deals in the week leading up to Christmas for those in the know. This unique period often presents rare buying opportunities— you can learn more about it in our Market Insight article.
My parting piece of advice.
At the end of the day, if you’re buying and selling in the same market, you shouldn’t need to worry too much about value fluctuations.
If you’re considering buying in 2025, now is the time to prepare. book a complimentary 15-minute discovery call , and we’ll ensure you’re ready and equipped with the correct information to find your dream home in the new year.
Lauren Staley
Managing Director
Infolio Property Advisors.
As property advocates and property managers we love what we do. Searching, negotiating and securing the perfect property for our clients, sooner and on better terms.
