Home values dip 2.88pc from Hobart’s peak

While home prices have slid lower in the past nine months, Hobart remains the strongest capital city market. WHAT 2023 WILL BRING >>

HOBART home prices are trending lower, but that does not mean buyers will find a bargain on every corner.

The new PropTrack Home Price Index revealed a slight 0.05 per cent January change in home prices compared to December.

Prices are now 2.88 per cent lower than the city’s peak in April last year. The report said this was the fastest but not the deepest decline in more than a decade.

However, Hobart remains the best performing capital city market in the nation with 43.9 per cent growth compared to pre-pandemic home values in March 2020.

Real Estate Institute of Tasmania figures show median house price growth every year for the past decade, doubling from $358,000 in 2012 up to the $750,000-$800,000 range last year.

Agent John McGregor. Picture Chris Kidd

4one4 Property Co. agent John McGregor said the shift in the market had returned pricing to something similar to the end of 2021, with any gains last year now wiped out.

He said some suburbs are about 10 per cent lower than their recent pricing peak.

“If you bought before the pandemic, you will be well in front. But if you paid a premium price in 2022 — and you have to re-sell — those people would be under pressure,” he said.

Mr McGregor described the market as “balanced”.

“The fear of missing out is no longer there,” he said.

“Price and presentation is key right now. You can get a lot of traction with a property that is immaculate; and it seems less people are interested in the costs associated with a renovation project.”

PropTrack senior economist Eleanor Creagh said the magnitude of Hobart price declines had eased in recent months from the faster pace seen last year.

Eleanor Creagh. Source: Supplied

Ms Creagh said a 25bp rate rise in February was widely expected and would take the cash rate to 3.35 per cent.

“The continued reduction in borrowing capacities will weigh on prices in the period ahead,” she said.

“Prices may begin to stabilise as interest rate uncertainty reduces later in the year.”

PropTrack’s report showed Hobart’s median house value is now $725,000, down 0.06 per cent monthly and 1.98 per cent annually.

Hobart’s house median remains higher than Adelaide, Perth and Darwin.

In the unit sector, the median is now $576,000 in Hobart, which was 1.12 per cent higher annually and 0.04 per cent monthly.

In regional Tasmania, the median home price is $494,000, with 2.56 per cent annual growth. It is 1.28 per cent lower than the peak in August 2022.

Since Covid, regional Tasmania’s median price has grown 51.6 per cent, the largest growth in Australia’s regional property markets.

Originally published as Home values dip 2.88pc from Hobart’s peak