Hobart Property Market – Prices, Trends, Forecast [December 2024]

Hobart’s property market saw marginal improvement with a 0.4% quarterly increase in dwelling values, though it recorded a slight monthly decline of -0.1% in November. The annual change remains negative at -1.0%, reflecting ongoing market challenges.

Hobart Property Price Growth

The current median dwelling value in Hobart is $654,339. While house values saw some stabilization, units experienced a steeper decline, contributing to the overall weaker performance in the market.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on December 1, 2024

Hobart Property Market Trends

The market has faced soft demand, with advertised stock levels increasing slightly but remaining below the five-year average.

Rental yields in Hobart sit at 6.5%, offering some stability for investors despite subdued capital growth.

A shift in buyer preference towards more affordable housing segments mirrors national trends.

Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).

Hobart Property Market Forecast

Hobart’s market is expected to remain subdued in the near term. While stabilization in house prices could persist, units may continue to underperform. Broader economic factors such as affordability pressures and high interest rates will likely limit significant recovery.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

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Conclusion for Homeowners

Hobart’s property market is currently characterized by flat or declining values, with limited upside in the short term. Sellers may need to manage expectations, while buyers could find opportunities in the unit market as values adjust further.

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