Hobart’s market conditions are relatively stronger than other cities, says Eleanor Creagh, REA Group senior economist. Picture: Supplied
Last month, Hobart eased off the market’s downward slide. Now it’s come to a complete stop.
The latest realestate.com.au Home Price Index shows no change in Hobart through October, making it the only capital city that did not record falling median home values.
Annually, Hobart is near the top of the growth table too. Prices in the southernmost capital are 4.6 per cent higher now than they were at the same time last year. Only Darwin recorded larger growth.
The largest capitals, Melbourne and Sydney, fell by over 6 per cent.
Hobart remains just 0.6 per cent below its highest home price on record, which was set in May this year.
The median is $734,000, which is $114,000 higher than Darwin, and just $81,000 below Melbourne.
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No.13 Tranmere Rd, Howrah is on the market seeking $900,000-plus.
No.24 Margaret St, Sandy Bay is priced at $1.395m-plus.
Eleanor Creagh, senior economist at realestate.com.au, said Tasmania remains one of the country’s more stable housing markets.
Ms Creagh said Hobart’s market conditions are relatively stronger than some of the other capital cities and the market “seems to be somewhat more buoyant”.
“Stock on market is down on last year’s levels in Hobart, so slightly more competitive conditions are also likely to provide support for home values,” she said.
Petrusma Property sales manager David McLeod agreed, stating that lower stock levels were affecting the market.
Statistically, he said the market is “holding steady for now”.
“A slightly lower supply than average for this time of year is helping keep things ticking along. However, the government’s tax changes and this year’s interest rate rises are certainly having an impact,” he said.
“I would expect listings to increase in November.”
Petrusma Property agent David McLeod.
Mr McLeod said, across all price brackets, the market requires accurate and reasonable pricing and a well-presented home to attract interest.
“I’ve seen a pick-up in interest in units, potentially with price point as a major factor,” he said.
“First home buyers are still present but many are showing caution and have potentially had their budget restrained due to changes in stamp duty concessions and rising interest rates.”
Mr McLeod said interstate buyers currently account for about 30 per cent of sales, which is quite high in a market traditionally driven by locals.
“Investor activity has reduced across the board since the tax changes and interest rate rise, but there are still some.
“Interstate-based investors are active, and we continue to have strong inquiry on lifestyle properties from people from interstate.”
Compared to prices five years ago, Hobart’s median price is up by 8.1 per cent, realestate.com.au found.
This is miles behind Brisbane, Adelaide and Perth, but ahead of Sydney and Melbourne.
“Hobart is one of the capitals that we’ve seen a relative underperformance over the past five years,” Ms Creagh said.
Meanwhile, across the rest of the state, the report showed a 0.2 per cent monthly fall in October but an 8.7 per cent increase in home prices over the past 12 months.
Regional Tasmania prices are up by 31 per cent compared to five years ago, with a median value of $593,000.
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