Report reveals Hobart, national home value reduction

Home values shrunk by -0.05 per cent in May. Picture: Supplied

HOBART’S home values dipped by a small sum in May, a national report has revealed.

PropTrack’s Home Price Index showed a -0.05 per cent decrease in the city’s median home price following a -0.44 per cent decrease in April.

Trimming -0.05 per cent from Hobart’s median value, $666,000, equates to $333.

Hobart was not alone with Sydney, Melbourne and Canberra each posting negative results in the election month.

“Monthly price growth continues to slow in Hobart, but despite this its annual price growth has been strong relative to the rest of the country, up 19 per cent,” PropTrack economist Paul Ryan said.

“The speed of interest rate hikes and wages growth remain the key unknowns for price growth moving forward.”

View chief executive Adrian Kelly. Picture: Luke Bowden

View Tasmania chief executive Adrian Kelly said he would not read too much into a month or two of data.

“By taking the longer view, maybe three to six months, you get a clear picture,” he said.

Mr Kelly said it will be interesting to see what happens in the second half of 2022 and that he would not be surprised to see a rising market.

“We have a supply shortage, and if we only have half as much demand as there was in 2021, that would be a strong market – I’d take that any day of the week.”

Harrison Agents partner Jarrah Burns.

Harrison Agents partner Jarrah Burns said property markets do not stay frantic forever.

“We have seen it slow down but there are some huge factors there like the election and interest rate rises,” he said.

“Our market has been at a high water mark for a long while, probably five years of sustained growth.

“All good things come back down to Earth a little bit. It would be natural to see prices plateau out before the next upward cycle.”

Mr Kelly said correctly priced Hobart homes are still selling quickly, but without attracting 15-20 contracts like they were.

“Anything in Hobart’s blue chip suburbs, they will be well sought after,” he said.

PropTrack economist Paul Ryan. Picture: Supplied

Mr Ryan said with home price growth slowing this year, May was the first time the national values recorded a fall (-0.11 per cent) since the start of the pandemic.

“However, a clear two-speed housing market has emerged with affordable lifestyle areas like regional Tasmania and NSW continuing to see solid growth,” he said.

At 0.47 per cent monthly growth, regional Tasmania had the highest growth figure in the nation and at 23.03 per cent annual growth, it was neck-and-neck with regional QLD for the No.1 position.

PropTrack’s monthly Home Price Index methodology analyses all homes, not just those that have transacted.

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