Tasmania house prices: Hobart home values fell by 1.9 per cent in December, CoreLogic says

Hobart’s housing market is behaving very differently to that of regional Tasmania, according to new figures released by a leading national property data firm. Get the latest here.

Hobart house prices fell by almost 2 per cent in December, outpacing the declines seen in every other capital city, according to new data.

CoreLogic’s latest Home Value Index, released on Tuesday, showed that dwelling values decreased by 1.9 per cent in Tasmania’s capital, ahead of Brisbane at -1.5 per cent and Sydney at -1.4 per cent.

Prices fell by 1.1 per cent nationally.

In terms of changes in values across the December quarter, Hobart experienced a -4.9 per cent decline, behind only Brisbane (-5.4 per cent).

Over the course of 2022, Hobart house prices took a -6.9 per cent hit. Only Sydney (-12.1 per cent) and Melbourne (-8.1 per cent) saw bigger drops.

Aerial image of Sandy Bay and Sandy Bay Road.

The median house price in Hobart is $673,333, compared to the national median price of $708,613.

“The -5.3 per cent drop in housing values through 2022 marks the first time since 2018 where national home values fell over the calendar year,” the CoreLogic report said.

“The 12 months to December also mark the largest calendar year decline since 2008, when values were down -6.4 per cent amid the Global Financial Crisis, and successive interest rate rises.”

CoreLogic research director Tim Lawless said house prices had risen through the first four months of the year before falling drastically once the Reserve Bank started increasing the official cash rate in an effort to rein in inflation.

“Our daily index series saw national home values peak on May 7, shortly after the cash rate moved off emergency lows. Since then, CoreLogic’s national index has fallen -8.2%, following a dramatic 28.9% rise in values through the upswing,” he said.

“The more expensive end of the market tends to lead the cycles, both through the upswing and the downturn.”

Despite the decline in home values over the last year, prices generally remain well above pre-Covid levels, according to CoreLogic.

Meanwhile, home values in regional Tasmania fell by 0.3 per cent in December and 1.1 per cent over the quarter, but grew by 2.4 per cent across the year.

The regional areas that experienced the greatest 12-month growth were the Central Highlands (9.6 per cent), the North-East (8.5 per cent), and Burnie-Ulverstone (6.8 per cent).

House rents rose by 5 per cent in Hobart in 2022, and 6.9 per cent for units.