OUR GROWING PAINS
JARRAD BEVAN
EXPERTS have predicted a $36,000-plus increase in Hobart property prices over the next 12 months.
In the latest Finder RBA Cash Rate Survey, 40 housing market authorities forecast increases ranging from 6-9 per cent growth across every capital city.
If the forecast holds, a 6 per cent increase in Hobart would take an average $607,960 house up to $644,905.
Finder head of consumer research, Graham Cooke, said the company’s research had revealed the average monthly mortgage payments in Hobart were worth 49 per cent of an average worker’s after-tax earnings.
This was on par with Canberra and less than Sydney (76 per cent) and Melbourne (57 per cent).
Finder has also found that over half (53 per cent) of homeowners are concerned about interest rates increasing in the near future.
According to the survey, this includes 15 per cent who fear they may not be able to make their repayments once rates creep up.
This must surely be on the minds of Hobart buyers dealing with a steady increase in prices amid the current market boom that has seen its median price jump by over 25 per cent in the past year per CoreLogic’s latest Home Value Index.
The report showed the annual change in dwelling values in Hobart was higher than any city in the nation.
Mercury analysis revealed in the past two years the city’s median has zoomed $200,000 higher.
At the current rate of quarterly growth, it could reach $700,000 by Christmas.
Mr Cooke says some homeowners may have purchased beyond their means in the midst of the housing market frenzy.
He said the past 12 months have seen property prices “explode”.
“Low interest rates have encouraged many buyers to purchase earlier than they otherwise might have for fear of missing out,” he said.
“But not all of them will have budgeted for their monthly repayments to go up if or before the cash rate increases.”
This news comes as fresh realestate.com.au data revealed new rental listings had fallen substantially in Hobart and Tasmania in August.
SQM Research figures put Hobart’s vacancy rate at 0.5 per cent or just 160 rental properties in August.
This figure has not improved much over the past 12 months when it was 0.7 per cent and 205 rental listings.