Hobart house prices 2.5pc higher than last year
To buy a typical Hobart house, buyers need a little more bang in their budget than they did last year.
PropTrack's April Home Price Index, released Thursday, shows a median value house will cost purchasers $715,000 — that's a 2.58 per cent annual increase.
The story is the same in regional areas, where house values have grown by 2.6 per cent year-on-year to a median of $550,000.
In the units sector, the capital and regional markets increased by a dash — 0.08 per cent in Hobart and 0.18 per cent in the rest of the state.
This brought the median unit prices to $560,000 in the city and $420,000 throughout Tassie.
REA Group senior economist Anne Flaherty said the next RBA interest rate announcement could have a positive effect on the property market.
'Should interest rates fall in May, we may see the rate of growth pick up again as borrowing capacities increase and mortgage repayments decline,' Ms Flaherty said.
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Peterswald director Harry Coomer said the Hobart market had been 'strong' over the past three months at a transactional level.
Mr Coomer said, at his agency, February and March sales results were their highest on record.
'You will see very good results and not as good results in any market, but it is life events that keep the property market ticking over,' he said.
'The Hobart market has been consistent this year, and I would expect it will stay that way.'
In the current market, Mr Coomer said buyers have the luxury of time to make their decisions.
'The average time on market is about 30 days, which means the volume of property available to buy is higher,' he said. 'This gives buyers more options.'
However, Mr Coomer said when everything lines up perfectly, buyers make decisions 'incredibly quickly'.
'If a home is perfect for someone's needs, a sale can come together fast,' he said.
'Some people will see a property at its first open home and make their decision that same day.
'These types of buyers know what they are chasing, and we see them act quickly.'
Another key factor in the market's movement will be this weekend's Federal Election.
Mrs Flaherty said with housing affordability a key issue at the upcoming federal election, Labor and the Coalition have announced policy incentives for first-home buyers.
'Many of these buyers may be biding their time to get into the market after the election and the launch of these policies,' she said.
'Whichever party is elected, the combination of increased first homebuyer incentives, lower interest rates, and supply-side challenges are expected to contribute to even higher property prices in 2025.'
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