So, 2024 is the year you've waited so long for because (drum roll), you're finally going to buy your first home.

Congratulations!

Or, perhaps 2024 equals adding another property to your investment portfolio, or are you preparing to upsize or downsize?

Whatever your real estate buying plans are in the new year, some important details shouldn't be forgotten.

Let's take a look.

Looking backwards will help you move forwards

Before you start house-hunting, take your cue from the ancient Roman god, Janus, from which the month of January is named after.

Janus looked both forward and backwards simultaneously and was associated with life/death, beginning/end, youth/adulthood and war/peace.

In other words, January has never been a better time to examine the past before girding up your bank account and starting your house hunt.

COVID was certainly a tough time but for first-home buyers in 2024, this period is an excellent example of the best and worst of the property market and how both sides could affect you as a homeowner.

This includes the Reserve Bank of Australia's (RBA) cash rate announcements which ended in 2023 at 4.15% after five increases, following eight increases in 2022.

Our highlights for 2022 can also be repeated, with some adjustments, for 2023:

Highlights of 2023

• Five RBA cash rate rises - but less than those of 2022 as inflation dropped to 5.4% in the September 2023 quarter
  NB: It should also be noted that the RBA will only hold eight - rather than 11 - cash rate meetings in 2024 (February, March, May, June, August, September, November and December)
  
• Adjusting market
  CoreLogic's Home Value Index report this month noted the final quarter of 2023 resulted in Sydney and Melbourne's median dwelling values dropping by 0.8% and -0.2%; however Brisbane and Adelaide experienced 3.7% growth while Perth won the gold prize for the highest increase (5.1%).
  
  CoreLogic’s research director, Tim Lawless liked the nation's monthly growth peak in home values of 1.3% in May.
  "(But) a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year," he said.

• Rising cost of living expenses and lower consumer confidence

I want to buy in 2024

Now, let's look into the nitty-gritty of how best to achieve your new year home-buying resolution.

• Be aware that FOMO can fool you
  We're not saying fear of missing out should equal sitting on your hands or not buying the next house you see. 
  But simply, be careful when buying, remembering that you're spending a major part of your life savings on a home.
  So, carefully and steadily is best.
  
  
• Ensure you have your ducks in a row before offering for the first house you fall in love with - or turn away from, because it doesn't suit
  Your most important ducks - even before making a verbal offer - are pre-approvals, conveyancing, and building and pest inspections.

• Ensure you have a support network and not just a legal, financial and sales one.
  Unless you're a savvy investor or someone who has bought and sold many times, you will need even one person to empathise with you through the buying process.
  It's helpful if this person has bought or sold a home before but it's not crucial.

• Assume interest rates will rise at least once - if not more - in 2024 but they're guaranteed to change less than in 2023, based simply on less RBA cash rate announcements.
  But in short, the RBA is determined to return inflation to its "target rate" of 2%-3%; thus the latest 5.4% CPI announcement is nowhere near where it should be.
  Thus, as the RBA repeated yet again in its December cash rate announcement, "the Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome."
  

We're here to help

Whatever home loan road you wish to take in 2024, Lending Loop would love to help you travel it!

We’ve brought all the services you need altogether, under one roof, so we can find you the best home loans from more than 40 of Australia’s biggest banks and specialist lenders.

So, give us a call today at Lending Loop.