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

Hobart’s housing market is experiencing challenges, with mixed signals in its performance. The market has shown a subtle rebound with a monthly gain but remains below peak levels reached in early 2022.

Hobart Property Price Growth

In October 2024, Hobart’s home values increased by 0.8% for the month. However, on a quarterly basis, values declined by 0.1%, and the annual change shows a drop of -1.2%. The median dwelling value in Hobart currently stands at $650,881, which is lower than its previous highs.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on November 1, 2024

Hobart Property Market Trends

Hobart’s market has been influenced by broader economic conditions, including rising interest rates and affordability pressures. The unit market, in particular, has faced more significant declines compared to houses. Market activity has been subdued, with increased stock levels but moderate demand.

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

The outlook for Hobart remains cautious, with potential for further value stabilization but limited short-term growth. External economic factors such as national interest rates and local affordability will play a crucial role in shaping future trends.

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 in a phase of adjustment, showing small monthly gains but overall negative trends on an annual basis. Homeowners should stay informed about ongoing market changes, especially if considering buying or selling in the near future.

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