There are signs Tasmania's real estate market has started to soften, with the Real Estate Institute of Tasmania's March quarterly report indicating the number of property sales has dropped.
Despite the easing, there are lingering fears many will still be locked out of Tasmania's housing market due to an increase in property value.
The number of properties that sold for more than $1 million was up 85.5 per cent on last year, with a majority of the sales made by Tasmanians.
Hank Petrusma from real estate firm Eis Property said he was surprised the prices of properties had increased in some areas of Hobart, given an overall decline in interested buyers.
"The amount of people coming through open homes is significantly less than say, six to 10 months ago," he said.
"The frenzy has gone and the market appears... to have levelled out a little bit. The demand for property in certain locations is still strong, but [that's] not everywhere.
Overall, the number of properties sold across Tasmania has decreased by 10.5 per cent.
Hobart property sales have fallen, both during the quarter and past year, and decreased 18 per cent and 8.9 per cent respectively.
Tasmania's north-west coast took the biggest hit, with house sales down 20.8 per cent over the quarter and 20.6 per cent down since last March.
Mr Petrusma said rising inflation and interest rates, the upcoming federal election, and international uncertainty had slowed the market in recent months.
"If you go back 12 months ago, it's nothing like having 60, 80 [buyers] through a property and that sort of frenzy of eight, 10, 12 contracts," he said.
"From a buyers' perspective that was not pleasant [and] that's certainly right now no longer the case.
"There are not as many people out there as there were before; people are being a bit more selective.
"I think even a year ago people would buy anything and everything.
"Now they're being a bit more selective, taking their time to make observations and comparisons, whereas 12 months ago, if you didn't buy you wouldn't buy so people were desperate to get inside the real estate market.
"That has changed quite dramatically."
Hobart prices still running hot
The value of Tasmanian properties is still hot, with the median house price growing by 1.7 per cent for the quarter to $610,000, an increase of 31.3 per cent on March last year.
Hobart's median house price increased 5.8 per cent for the quarter and 31.5 per cent on last year.
Mr Petrusma said he believed it was still a "great time" for first home buyers to get into the market, but new data suggests not everyone agrees.
The number of people who purchased their first property has dropped significantly by 13 per cent from December's quarterly report, and 20.6 per cent on the same period last year.
The Real Estate Institute outlined rising house prices and a limited number of properties below $500,000 as contributors to a decrease in first home buyers.
While many may be relieved to see the market shift, Mr Petrusma said there would always be a demand for properties in Tasmania for those seeking a sea change.
"I've been in this industry a long time [and] I think Tasmania will always be a special place for people from interstate and overseas to come and live," he said.
"The thing that we have going for us is that we're an island. We're safe, the weather is magnificent, we've got beautiful fresh water and clean air."
Top 10 median price growth suburbs/towns over the quarter
Suburb |
No of sales |
Median price |
% Median change Dec-21 to Mar-22 |
|---|---|---|---|
Deloraine |
5 |
$680,000 |
65.9% |
Shorewell Park |
6 |
$432,500 |
63.5% |
Dodges Ferry |
19 |
$932,300 |
41.6% |
Rose Bay |
5 |
$1,300,000 |
29.1% |
Huonville |
16 |
$677,500 |
28.7% |
Port Sorell |
11 |
$750,000 |
28.2% |
Taroona |
7 |
$1,210,000 |
27.2% |
Ravenswood |
7 |
$402,000 |
23.7% |
Bellerive |
8 |
$1,175,000 |
23.6% |
Zeehan |
12 |
$172,000 |
23.2% |
