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

Hobart’s housing market has shown signs of cooling, with a slight decline in home values in recent months. The market, which had previously seen strong growth, is now facing more subdued conditions.

Hobart Property Price Growth

In August 2024, Hobart saw a marginal decrease of 0.1% in home values, contributing to an overall annual decline of 1.2%. The median dwelling value in Hobart is now $655,114, reflecting the challenges in sustaining previous growth levels.

CoreLogic Home Value Index

Hobart Property Market Trends

The market trends in Hobart have been influenced by affordability pressures and a reduction in demand. The earlier strong price growth has led to affordability constraints, which are now impacting buyer activity. There is also a noticeable trend of weakening interstate migration to Tasmania, which had previously supported the housing market.

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

Top 10 Greater Hobart SA3’s with highest 12-month value growth – Dwellings

Top 10 Regional TAS SA3’s with highest 12-month value growth – Dwellings

Hobart Property Market Forecast

The outlook for Hobart suggests continued moderation in the housing market. With affordability constraints and reduced demand, significant price growth is unlikely in the near term. The market may continue to experience slight declines or stabilize at current levels.

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.

Conclusion for Homeowners

Homeowners in Hobart should expect a period of stable or slightly declining property values. The market’s previous growth has cooled, and with ongoing economic pressures, the focus may shift towards maintaining market stability rather than achieving high price increases.

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