REIT report: More first-time home buyers get foot on ladder
Young Tassie buyers were back in business to kick off this year, with the most home purchases since 2021.
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TASMANIA’S housing market has gotten off to a strong start to the year with growth in key areas: total sales, first homebuyer activity and the return of interstate purchasers.
The Real Estate Institute of Tasmania’s March Quarterly Report — released today — shows improved results compared to the previous December quarter or March 2023.
First-time buyers recorded their highest number of quarterly transactions, 460, since December 2021. They acquired 322 houses, 87 units and 51 blocks of land.
Mainland buyer transactions rose 20.7 per cent to 356 sales for the quarter. This was their highest activity level in 18 months. The median purchase price for an interstate buyer was $539,000.
Statewide, the median house price in March was $600,000, $1000 more than the same time last year but $15,000 below the previous quarter.
Increased activity from buyers in the mid to lower price ranges has been attributed to a downward movement in median property price across the state.
House sales statewide, 1627, were up 9.9 per cent during the quarter compared to March 2023, and 4.1 per cent higher than December 2023.
REIT president Michael Walsh was pleased to see some confidence returning to the market.
He said the downturn in 2023 had enabled young buyers to take advantage of the market conditions and buy their first home.
“The latest news that any interest rate relief could be deferred until much later in the year or even until 2025 may dampen the prospects of those considering entry to the market,” he said.
“As the federal government continues to ramp up immigration, interstate capitals are recording strong property prices and rental growth.
“In time, this could impact us and our market.
“We have been through a time of correction and all bases point to an imminent recovery being not far away.”
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The report also showed Tasmania recorded 2277 March sales with a value of $1.38bn.
Sales numbers surpassed the same period last year (2090) and the previous December quarter (2183).
Tassie recorded 207 properties sales in excess of $1m. This was up by 12 transactions on the previous quarter and 32 on the same time last year, with about 80 of these properties acquired by Tasmanians.
Rents for a three-bedroom house in Hobart increased $20 per week, Launceston $10 per week and The North West $15 per week.
Rental vacancy rates have risen to their highest levels in several years: Hobart 2.4 per cent, Launceston 2.1 per cent and the North West to 2.1 per cent.
The average time to sell a home across the state reached 51 days, up by nine days compared to the previous quarter or the March quarter 2023.
Hobart’s March quarter time on market figures were faster than in regional areas, with city houses selling in 38 days and units 35.
Meanwhile, the Real Estate Institute of Australia’s centennial celebrations will be held in Hobart this week, including an international auctioneering competition and a national awards ceremony. Visit reia.arinex.one for details.
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