June Hobart home prices dip while nation rises

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HOBART and Tasmania’s median home prices have slid again over the past month.

Of the capitals, Hobart and Darwin were the only cities to record a lower June median home price compared to May.

Per PropTrack’s latest Home Price Index, values in Hobart were 0.36 per cent lower in June than they were in May.

Annually, the median price is 6.37 per cent lower. But compared to pre-pandemic prices in March 2020, Hobart values remain 37.6 per cent higher.

Hobart’s median home value now sits at $668,000, which is more than Darwin and Perth, while neck-and-neck with Adelaide.

Regional Tasmania’s prices are steady compared to this time last year, with only a 0.81 per cent reduction. The median value is $504,000.

PropTrack economist Angus Moore said Hobart’s declines since hitting its peak were now the largest in the nation.

“Even so, this downturn comes after very strong growth during the pandemic,” he said.

In SA4 areas, homes in Tasmania’s West and North West have the strongest annual figures with 1.38 per cent growth.

Outside of Hobart, in the South East, the year-on-year change is a 0.46 per cent reduction, while Launceston and the North East are down 2.22 per cent.

Nest Property's Todd Pepper. Picture: Supplied

Property representative at Nest Property, Todd Pepper, said uncertainty in the market had seen it slow.

“It’s the first time in a few years that we have had a classic June winter market rather than a busy, boom-like market,” he said.

“Some buyers are starting their offers at a reasonable amount under the asking price.

“It’s a reflection of the nervousness around interest rates and what their borrowing capacity will be six months from now.

“I’d estimate $50,000-$70,000 has come out of the market compared to this time last year, but much of that was at the start of rates rising.

“My gut feeling is it won’t go much further than it already has.”

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Mr Pepper said top quality homes will still fetch a solid price.

“I’ve sold three this year that were $100,000-plus over the asking price,” he said.

PropTrack economist Angus Moore.

Mr Moore said interest rates will continue to be a “headwind for prices” and that he expects the peak of interest rates is “likely close”.

Meanwhile, the latest Housing Industry Association Affordability Index shows Hobart was the only capital city that registered an improvement in affordability in the March quarter with 1.3 per cent growth.

Regional Tasmania saw an improvement in affordability, with the index up by 0.6 per cent in the quarter.

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PROPTRACK HOME PRICE INDEX JUNE

City, monthly growth, annual growth, change since March 2020, median value

Hobart -0.36% -6.37% 37.6% $668,000

Sydney 0.63% 0.96% 27.4% $1.036m

Melbourne 0.24% -2.93% 15.3% $803,000

Brisbane 0.08% 0.07% 46.3% $731,000

Adelaide 0.45% 5.27% 48.8% $666,000

Perth 0.34% 5.69% 34.6% $577,000

Darwin -0.08% -1.47% 25.7% $482,000

Canberra 0.11% -3.47% 35.6% $838,000

Originally published as June Hobart home prices dip while nation rises