The upward trend of house prices in Hobart is coming to an end after the city’s housing market ran hot against weakening east coast markets, according to a report by The Australian Financial Review.
Over the past three years, Hobart's values rose by 5% to 12% each year, while prices in the rest of the country either stayed flat or declined. In 2018, Tasmania’s capital was able to record an 8.7% lift in house prices.
However, rising prices eventually wear out, and Hobart market will not be exempted, according to CoreLogic Head of Research Cameron Kusher.
"There are signs of the market slowing with stock on market rising, properties taking longer to sell and new housing supply – finally – increasing," he said. "The big change for Hobart has been that the strong value growth over the past three to four years has seen it moving from being the most affordable capital-city housing market to now having a higher median dwelling value than each of Adelaide, Perth and Darwin. With affordability no longer a strong lure, we would expect that the rate of value growth will slow further throughout 2019."
CoreLogic’s study showed, though, that as long as strong migration continues against low supply of homes, prices in the city will not enter the negative territory.
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