"Australian Property Market Faces Uncertain 2024 Amid Slowing Growth and Economic Pressures"

Australian home prices saw an 8.1% increase in 2023, recovering from a 5% decline the previous year, but growth has slowed due to higher interest rates, inflation, and affordability issues. Sydney's prices rose by 11.1%, yet remained below their peak, while Perth and Brisbane also experienced significant increases. The Reserve Bank of Australia's rate hikes, totaling 425 basis points since May last year, and high inflation have put financial pressure on households. However, the RBA believes most borrowers can manage their mortgages. Future housing market trends will be influenced by the trajectory of interest rates, with potential rate cuts possibly boosting the market in the latter half of the year.