Neither boom or bust for steady Hobart market

While Hobart’s home pricing sits flat, one corner of the market is suddenly active. See the latest figures>>

2 min read

August 1, 2024 - 9:30AM

Hobart’s median home price is a little lower this year than in 2023, and young buyers have returned to the market. Picture: Supplied

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THE latest pricing figures have landed and the southernmost capital city housing market remains stubbornly where it has been all year.

However, initiatives like the removal of stamp duty for first-time home buyers up to $750,000 and a deposit guarantee scheme has lit a fire under young buyers.

Insitu Property Hobart director Nina Schubert said there has been an influx of new FHB in the market.

“There is a lot more competition in that space, which was the hardest part of the market for a while,” she said.

“When interest rates went up and borrowing capacity went down, young buyers found they could not afford to buy anything.

“But with them now back and active, that will have a pick-up effect on the rest of the market, too.”

Insitu Property Hobart director Nina Schubert.

Ms Schubert has gotten 12 properties under offer in recent weeks, almost all within 10 days on the market.

She said a property that is well priced and presented will always attract buyers.

“There is more confidence in the market than there was recently,” she said.

“Those conversations we were having with people weekly about pricing, nervousness and interest rates are gone. Instead, people are ready to buy.”

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PropTrack’s July Home Price Index shows a 0.04 per cent decrease compared to June. It sits 2.12 per cent lower compared to this time last year.

Of the three capital cities that recorded a monthly decline, Hobart’s was the smallest.

PropTrack senior economist Paul Ryan said pricing falls in Hobart aligned with the rapid increase in home loan interest rates.

“This comes after Hobart entered the pandemic as the strongest performing market, with values up significantly,” he said.

PropTrack economist and Home Price Index report author Paul Ryan.

All dwellings — houses and units combined — remain 34.4 per cent higher today than at the start of Covid. They are higher still in regional Tasmania, up 55.9 per cent.

Hobart’s current median house value is $717,000 and units $530,000. In regional areas, it is $552,000 (houses) and $419,000 (units), the report shows.

Hobart now has a lower median price than every other city, aside from Darwin which is about $189,000 cheaper.

At a SA4 level, only Hobart has recorded a decrease in median price over the past 12 months.

Tasmania’s West and North West sits 2.85 per cent higher, Launceston and the North East is up 2.15 per cent and South East 1.08 per cent.

No.196 Coningham Rd, Coningham hit the market seeking $795,000-plus and has attracted five offers.

No.196 Coningham Rd, Coningham.

Meanwhile, PropTrack’s June listings data showed there were more homes available in Hobart on two fronts — new and total listings.

In Hobart, there has been a 6.5 per cent increase of new homes for sale compared to 12 months ago, and a 9.8 per cent increase in total listings compared year-on-year.

However, regional Tasmania recorded a 4.4 per cent decline for new listings against an 18.5 per cent uptick for total listings.