Hobart was one of the star performers during the pandemic, with significant real estate price increases and sales conditions. However, there are some signs that may be changing.
No capital has risen as much as Hobert over the pandemic.
Shine seems to be coming out of the super hot Hobart market.Photo: Getty
From February 2020 to April 2022, when prices peaked nationwide, prices in the Tasmanian capital rose by a staggering 48.4%.
This is the fastest growth rate of any capital, much faster than the national average of 35.4% over the same period.
The strong demand for Hobert’s homes was also evident in the speed of sales.
The median time to sell real estate has just fallen for 10 days In March 2022, it was significantly faster than the other capitals and much faster than the country’s median of 39 days. Hobart has been a better-selling market for many years.
Hobart buyers also faced limited choices for many of the pandemics, and the number of properties available for sale at realestate.com.au could be as much as 40% less than pre-pandemic levels.
However, these favorable terms of sale appear to be changing and buyers are beginning to have more choices.
A New stock wave It has hit the Hobart market in the last few months. Hobart’s new listing in April increased 38% year-on-year, and its new listing in May increased 47%.
When the new stock hits the market, the total amount of properties available for sale increased by 37.7% year-on-year. Two-thirds Compared to the lows seen last July.
Compared to the same period last year, the number of potential buyers looking for properties in Hobart in the last three months has decreased by about 2% compared to the same period last year.
This is similar to the decline in Sydney, in contrast to the nationwide increase of just over 1.5%.
This dynamics is also reflected in home prices. Hobart prices fell 0.05% in MayIt was a small drop for the second consecutive month.
It’s a dramatic change. Hobart was one of the fastest growing capitals six months ago.
The median number of days in the market has also increased, from just 10 days in March to 13 days in May. It’s still very short, but it’s changing rapidly.
As in other parts of the country, interest rates will be a headwind for Hobart’s home prices this year. However, this city can face strong headwinds from a more affordable price than other cities.
Hobart’s prices have risen particularly rapidly compared to Melbourne, making Hobart relatively more affordable than before. To change the situation, the median Hobert’s home before the pandemic was about two-thirds the price of Melbourne. It’s now about 20% cheaper.
Interest rates are expected to skyrocket this year, and due to the deterioration of affordable prices, Hobart’s prices could fall even further than in other cities.