The latest quarterly report from the Real Estate Institute of Tasmania (REIT) has landed and the findings might surprise you. Representing the sector in Tasmania, the REIT gather data from agencies across the state to form their periodical reports. While their most recent press release outlines the drop off of the “mainland invasion” and a significant decline in First home buyers, it is not all doom and gloom in our Island state.
In terms of volume of transactions, there has, undeniably, been a steep decline with 9848 residential real estate sales in 2022, down 18.7% from 2021. However, the price of houses, units and land all grew substantially at 16.7%, 13.4% and 21.4% respectively. Furthermore, million-dollar house sales continued to grow, with over 80% of purchases coming from local residents.
While the recent REIT report shows continued strength in housing prices, sellers can expect a longer time on the market as buyers exercise caution. Selling time has doubled in Hobart over the past 12 months (now 26 days) and it has significantly increased in Launceston (17 to 29 days) and in the North West (22 to 33 days).
On the investment front, a reduction of some 33% in investment purchases has continued to squeeze an already struggling rental market. Record-breakingly low vacancy rates and rising rental prices are being recorded across the state.
Whilst the Tasmanian market will continue to ride the waves of further interest rates and supply costs, the REIT president Michael Walsh firmly believes that “ the Tasmanian real estate market is well positioned to weather the storm.” With rental availability and investor activity an important focus for the next period.
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