Buyers are back on top in Tasmania

“Interest rate increases have impacted housing affordability to such a level that sales numbers and median prices have declined,” it was reported.

In addition, there’s been a significant increase in the number of properties for sale, with the result that buyers have not only more choice — but more of a say in the sale price.

“Sellers no longer have control of the market,” REIT said.

That sentiment is backed up by Propertyology head of research Simon Pressley, who recently said that “the state, especially Hobart, has enjoyed one of the longest growth cycles that any Australian city has ever seen”.

Considering that “it is possible that buyers are now catching their breaths”, he does still see plenty of positives in the local marketplace — including a strong economic outlook.

Proof of its potential can be found in Smart Property Investment’s Fast 50 2024. South-eastern Hobart’s Rokeby was named as one of the suburbs to watch over the coming 12 months, given its median house price of $562,500 and recent 12-month growth of 11.8 per cent.

According to institute president Michael Walsh, the change in the Tasmanian market has been “visible”.

“There are fewer sales occurring; There are more properties coming on to the market, and they are taking longer to sell,” he outlined.

Mr Walsh believes that for those who are looking to purchase, they are now in the top seat, with more choices and opportunities now available.

Flagging too that these savvy buyers are asking for discounts, he conceded that few, if any, vendors are receiving premiums above the asking price.

Over the March quarter, a total of 2,090 sales took place on the island — worth a total of $1.26 billion.

Compared to the same period in 2022, values are down by 24.7 per cent.

It’s also taking almost twice as long for properties to sell. In March 2022, the average selling time was 23 days. Now, it has increased to 42 days.

Compared to the March quarter of 2022, median house prices are down by 2.5 per cent.

Similarly, the number of million-dollar sales across Tasmania also fell — by 9.6 per cent.

So how did the biggest regions perform?

Greater Hobart saw 441 home sales over the quarter — 18 less than the same period in 2022. The median price also fell by 12.2 per cent — to $720,000.

In Launceston, there was a 22.9 per cent drop in property sales over the quarter in comparison to the year prior. The median house price also dropped, by 4.9 per cent to $549,000.

In the north-west, a 24.6 per cent drop in sales figures did not have a detrimental impact on prices. Properties in this area saw a 1.4 per cent increase in the median price to $460,000.