Hobart market steady despite small Jan dip

A 3 per cent lift in prices this year would give Hobart a new peak home price. Picture: Supplied

---

Hobart recorded a small adjustment of a couple of thousand dollars in its typical home price in January, a report has revealed.

PropTrack’s new Home Price Index shows a 0.4 per cent monthly decrease in dwelling prices – houses and units combined.

This brought Hobart’s annual growth figure to 6.4 per cent, or $44,800 higher than at the same time last year.

PropTrack’s data shows the city’s median value is $704,000.

This is 2.6 per cent below the capital’s peak price in February 2022. And 25 per cent higher than prices were five years ago.

MORE: QV Tower sold in landmark Launceston deal

Inside Tassie’s top homes of 2025: what $3m+ buys

REA Group executive manager of economics Angus Moore said a slight decrease was not necessarily a sign that the growth cycle had finished in Hobart.

Mr Moore said, around this time of year, it was hard to say as January is a very light month for housing market activity and for sales.

“It can be a bit seasonally soft, but that said, Hobart has been clearly a bit slower over the past few months,” he said.

REA Group’s Angus Moore.

---

“That pick-up in growth that we had seen as interest rates stabilised does look like it’s started to slow down, potentially because we’re looking at interest rate hikes this year.”

Mr Moore said there has been some improvement in choice for Hobart buyers, relative to a few years ago.

“Hobart’s total number of listings is actually down relative to a year ago, though still a lot better than a few years ago. So that will be cooling prices to some extent,” he said.

MORE: Ace! Serving Tassie’s tennis home dream

Estate of art: 1820s Hobart icon for sale

Real Estate Institute of Tasmania president Russell Yaxley said the Hobart market was “steady”, with no signs of significant retraction or booming price growth.

“It has been steady, but prices have also crept up over the past year,” he said.

“Our last peak was following the Covid price growth period.

“And despite pressures like interest rates and a market correction, recent years have proven the Hobart market to be resilient.”

REIT president Russell Yaxley.

---

Mr Yaxley said homes that are priced and presented well are being “snapped up in good time”.

“Anything overpriced will struggle. Buyers are educated. It is vital to price a property correctly,” he said.

“Supply is still reasonably slow, but demand is still there. Growth could be slow and steady this year.”

MORE: Revealed: This is Hobart’s No.1 home feature

Mill-ion dollar question for historic tourist site

An inflation reading last week that was above expectations had led experts to forecast an interest-rate increase at Tuesday’s Reserve Bank meeting.

Mr Yaxley said a rate increase would have an effect on the market. However, he is not expecting it to be dramatic.

He said any talk of an interest rate hike causes uncertainty, and may slightly adjust growth momentum.

“However, people are smart, often they factor in higher rates as a possibility. They create a buffer for themselves.”

Compare the Market’s economic director, David Koch, said a single 0.25 per cent rate rise could push monthly repayments up by about $94 for someone with a $600,000 mortgage.

That’s an extra $1128 a year for households also facing higher grocery, insurance, and energy costs.

“Australians don’t need to panic, but they should be prepared,” he said.