Hobart’s median home price has never been higher, says REA Group economist Eleanor Creagh. Picture: Supplied
Hobart recorded the smallest amount of home price growth among the capital cities in March.
But it was just enough to make history.
PropTrack’s latest Home Price Index shows Hobart has set a benchmark with dwelling values now higher than they have ever been.
The southernmost capital city’s median dwelling value, combining houses and units, rose by 0.1 per cent in March and now sits at $722,000.
Aside from Darwin, Hobart is by far the most affordable city. It’s $137,000 cheaper than the next most affordable city, Melbourne, and $158,000 below Canberra.
Over the year, Hobart’s median dwelling price rose by 8.9 per cent, or $64,200.
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No.9 Kingston Heights, Kingston Beach is listed with Fall Real Estate at “Offers over $895,000”.
REA Group senior economist Eleanor Creagh said the figures also show Hobart’s median house price has reached a new peak of $778,000.
However, Hobart units have not peaked yet, although prices have grown by $38,900 annually to reach a $599,000 median value, she said.
A lack of homes for sale remains a pressure point.
Ms Creagh said the total stock available on the Hobart market has “declined significantly” compared to this time last year. It is down by 23 per cent, she said.
“This has created more competitive conditions,” Ms Creagh said.
“Although prices are still rising in Hobart, the slowdown in March was quite sharp; a clear deceleration is emerging.”
Real Estate Institute of Tasmania president Russell Yaxley.
Real Estate Institute of Tasmania president Russell Yaxley said Hobart hitting a new median peak is “significant”.
“It’s reflective of current conditions with buyers still competing strongly, especially as available properties begin to tighten,” he said.
Meanwhile, big four bank Westpac has revised its forecast for the cash rate over the coming months, predicting it will reach a new high of 4.85 per cent.
The bank attributes its updated outlook to ongoing Middle East tensions that continue to exert inflationary pressure, and now anticipates the Reserve Bank will lift the cash rate at its May, June and August meetings.
Harcourts Signature has No.55 Cambridge Rd, Bellerive on the market for $2.05m-plus.
With interest rates rising twice already this year, Ms Creagh said time will tell if Hobart’s property market recovery continues.
“If rates rise two or three more times this year, borrowing capacities will be reduced further, and buyer sentiment will be dampened,” she said.
“The market is already shifting into a slower growth phase as a result of recent rate rises and global uncertainties.
“There is an increasing likelihood of price falls in some areas.”
MARCH HOME PRICE INDEX
City, Monthly growth, Annual growth, Median
Sydney 0.2% 5.6% $1.251m
Melbourne 0.2% 3.2% $859,000
Brisbane 0.7% 17.7% $1.071m
Adelaide 0.4% 14.6% $937,000
Perth 0.5% 20.9% $1.012m
Hobart 0.1% 8.9% $722,000
Darwin 0.4% 16.8% $609,000
Canberra 0.2% 4.5% $880,000
Source: PropTrack
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