HOME SPREE
Bidding war as prices surge $ 20Ok
PROPERTY buyers are so desperate to enter the Tasmanian market they are bidding 10 to 15 per cent above the advertised price, according to local real estate agents.
The latest housing data shows that property prices in Hobart have increased on average $ 200,000 in 10 years because of a huge gap between supply and demand.
CoreLogic’s December Home Value Index shows Hobart’s median house price now sits at $ 513,552, up 6.1 per cent from December 2019 and up from $ 334,000 in 2010.
The annual house price growth in Tasmania’s capital is now the third highest in the nation behind Darwin and Canberra. Launceston and the North West are also outperforming other Australian regions.
THE MARKET IS SO COMPETITIVE I JUMPED ON THIS PROPERTY WHEN IT HAD BEEN ONLINE FOR ONLY SIX HOURS FIRST- HOME BUYER REBECKAH HOWARD
PROPERTY prices in Tasmania continue to climb with a house in Hobart now costing $ 200,000 more than a decade ago due to a massive gap between supply and demand.
Local real estate agents say people are so keen to get into the market they are offering 10 to 15 per cent above the advertised price to win bidding wars.
CoreLogic’s December Home Value Index shows Hobart’s median house price now sits at $ 513,552, up 6.1 per cent from December 2019, and up from $ 334,000 in 2010.
The annual house price growth in Tasmania’s capital is now the third highest in the nation behind Darwin and Canberra.
But growth is not restricted to Hobart, with Launceston and the North West Coast nipping at the capital’s heels.
Real Estate Institute of Tasmania president Mandy Welling said a home in Hobart’s northern suburbs, advertised for $ 365,000, last week sold for $ 400,000.
“We have a massive shortage of property for sale — about 5000 homes short of what the demand is,” Ms Welling said. “And while this shortage remains, property prices will continue to rise.”
She said state and federal building grants were allowing some first home builders to break into the market but there was also a shortage of land to subdivide in Tasmania.
“Add in historically low interest rates and the interest in Tasmania as a place to live from the mainland I would say there is definitely some growth left in the market.”
First- home buyer Rebeckah Howard and her two children moved into their new Herdsmans Cove home over Christmas.
“The market is so competitive I jumped on this property when it had been online for only six hours,” Ms Howard said.
“You see multiple contracts on one property and people in bidding wars.
“It feels fantastic to be in our own home. We were so lucky to get the right house at the right time.”
The CoreLogic index showed Australia’s housing market finished the year on a strong footing with home values 3 per cent higher than the year before.
Regional housing values climbed a massive 6.9 per cent.
CoreLogic’s research director Tim Lawless said the year was characterised by a mild COVID dip in values, but unprecedented volatility in the transaction space.
“The number of residential property sales plummeted by 40 per cent through March and April but finished the year with almost 8 per cent more sales relative to a year ago as buyer numbers surged,” Mr Lawless said.