Hobart market halts home price slide

Hobart home prices were steady in September, says realestate.com.au senior economist Eleanor Creagh. Picture: Supplied

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The brakes have been put on Hobart’s property price slide.

Following three months of small pricing falls, the new realestate.com.au Home Price Index shows there was no change in Hobart home prices in September.

Annually, Hobart sits 5.3 per cent higher than a year ago and just 1 per cent below the peak price, $735,000, set in May this year.

Hobart’s median home value, houses and units combined, is now $729,000.

That is $91,000 more expensive than Darwin, $90,000 below Melbourne and $125,000 less than Canberra.

Compared to prices five years ago, Hobart is 9.3 per cent higher, and compared to 10 years ago the growth is 106 per cent.

Across the rest of the state, regional prices held firm in September and are 10 per cent higher than they were one year ago. $594,000 is a peak price for regional Tasmania.

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No.35 Golden Grove Dr, Blackmans Bay is listed at $1.35m-plus.

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No.450 Clifton Beach Rd, Clifton Beach is for sale, $1.5m-plus.

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Senior economist at realestate.com.au Eleanor Creagh said higher interest rates are weighing on borrowing capacity and buyer demand.

She said the spring selling season has not delivered the usual lift in momentum.

August listing figures from realestate.com.au show a 3.3 per cent increase in new home listings hitting the market and a 4.9 per cent increase annually.

However, looking at the total number of homes for sale, Hobart is the only city with a negative listings trend, down 12.5 per cent compared year-on-year.

No.55 Salamanca Pl, Battery Point is listed at $2.95m-plus.

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Peterswald agent Bec Owens said Hobart’s lack of stock was a significant pressure point.

Mrs Owens said the classic springtime burst of activity was yet to launch, although they are appraising a lot of properties.

She said some people might be waiting for more clarity around interest rates – which have increased again – and other factors like changes to negative gearing and capital gains tax.

The removal of the stamp duty exemption for first home buyers has also caused some upheaval, she said.

“With stock low, it makes it harder for people to move when they need to,” Mrs Owens said.

“When demand outweighs supply that helps prices to not be too impacted negatively.”

Peterswald agent Bec Owens.

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Mrs Owens said properties coming to market are selling well — with two caveats.

“They need to be presented well and accurately priced,” she said.

“Demand is strong in many price brackets, especially at the lower end. We receive a lot of calls from people who can’t find what they want and are hoping to find something coming soon or off-market.

“First home buyers, starter properties, and investors to a degree, are still looking to buy.”

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Assessing the national outlook, Ms Creagh said further price falls are likely over the coming months as this week’s interest rate rise, tax changes and the cumulative impact of higher borrowing costs weigh on demand.

“However, resilient employment, limited forced selling and homeowner equity buffers should contain the severity of the adjustment,” she said.

“Reduced buyer purchasing power remains the dominant pressure on prices, rather than large numbers of owners being forced to sell.”