Hot Hobart market shows signs of pressure easing

While still a red-hot sellers market, an expert has revealed Hobart has shown some indication of a slowdown, that might ease housing pressure. LATEST >>

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OVER the past two years, the price of a typical Hobart home has grown by $200,000.

In its November Home Value Index, CoreLogic revealed a $676,595 median dwelling value for the southernmost capital city.

At the same time in 2019, before the pandemic property price frenzy, Hobart’s median for houses and units combined was $474,186.

The report showed a 1.1 per cent change in dwelling values over the month (or about $7439), 5.5 per cent quarterly and a nation-leading 27.7 per cent annual growth.

Hobart is hot but there are signs of a gradual loss of momentum, says CoreLogic research director Tim Lawless.

While describing Hobart housing as red hot, CoreLogic research director Tim Lawless said there were some indicators of a slowdown for those hoping to see pressure to come out of the market.

He said the quarterly change figure was a good measure of momentum, and it peaked in July at 8.2 per cent.

“It has eased back to 5.5 per cent, and while there is some volatility in smaller market figures compared to larger cities, it’s clear that Hobart has lost some steam over that time,” he said.

“However, at 5.5 per cent, Hobart is still a really hot market.”

Mr Lawless said a major factor supporting upward pricing pressure was stock levels remaining so low.

He said there had been a small increase in total listing numbers of late – and an increase in time on market figures – yet, stock levels are about 26 per cent below the five year average for this time of year.

“Buyers have little to choose from and a sense of urgency is palpable in the marketplace,” he said.

“Hobart is very much a sellers market and will likely persist as such for quite some time.

“Gradually, I would expect the growth rate to ease off.”

Real Estate Institute of Tasmania president Michael Walsh said Hobart’s $200,000 two-year home values increase showed how far the city had come … “a long way very quickly”.

“I’ve yet to see prices fall away at all,” he said.

“Quarterly figures tend to paint an accurate picture of what’s happening in our market, rather than month by month.

“What’s happening in major cities interstate does not have a large effect on the Tasmanian market.”

Sale prices across the state remain strong, says REIT president Michael Walsh.

At $676,595, Hobart’s median value was the fourth highest of the capitals behind Sydney, Melbourne and Canberra.

Hobart was $14,396 higher than Brisbane, $118,416 more than Adelaide, $148,055 higher than Perth and $183,548 above Darwin’s median value.

While every capital city’s rental market recorded growth in annual change figures, Hobart’s were larger than everywhere except Darwin with house rents climbing 13.7 per cent and units 12.6 per cent.

Regional Tasmania’s dwelling values recorded 2.5 per cent monthly, 6 per cent quarterly and 29.8 per cent annual growth.

HOME VALUE INDEX

Change in dwelling values Month, Quarter, Annual, Median value

Hobart 1.1% 5.5% 27.7% $676,595

Sydney 0.9% 4.3% 25.8% $1,090,276

Melbourne 0.6% 2.4% 16.3% $788,484

Brisbane 2.9% 7.4% 25.1% $662,199

Adelaide 2.5% 6.5% 21.4% $558,179

Perth 0.2% 0.4% 14.5% $528,540

Darwin -0.4% 0.2% 16.7% $493,047

Canberra 1.1% 5.0% 24.5% $882,519

National 1.3% 4.4% 22.2% $698,170

Source: CoreLogic

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