What’s really happening in the Hobart property market?
Majority of homeowners are asking the question “what should I do” or “is now really the best time to sell?” given the recent media hype around interest rates and pull back from the market.
So, what is really happening on the ground and what are we seeing as property agents?
Despite the odds, throughout the pandemic we had an increase of approximately 28.6% in national dwelling values and Hobart was a leader in the sky rocketing numbers. The month of May saw a Federal Election and the first of many interest rate rises. CoreLogic stated that national dwelling values fell -1.3% for the month of July 2022, with Hobart recording a fall of -1.5%, this was the third consecutive decline on a monthly basis.
Buyers were hesitant to enter the market due to the unknown of what might occur or how much they can now borrow. Those who could borrow $1,000,000 in January may only be able to borrow $900,000 now, and this influences how many buyers we were seeing at open homes through the past few months.
Properties that are representing good value and that have a higher buyer pool (i.e fully renovated or a great investment opportunity) are still seeing high open home numbers.
For example: 8 Carlton Street, Lenah Valley had a very large buyer pool, appealing to elderly couples, young couples, families, and investors. This was due to the property being fully renovated with great period features on a flat block. Pairing the fabulous home with Peterswald for property’s high-quality marketing and strategy, we saw around 50 attendees over two open homes. Buyers saw strong value in this home, and we achieved an outcome 19% over the marketing price.
Regardless of the recent softening of the market, we’re continuing to receive good enquiries from prospective buyers looking to purchase property in the greater Hobart area. Although buyers tend to take a little longer to put an offer on the table (whilst often working out how much they can borrow), we are still seeing offers being made on properties approximately 8-12% on average over the marketing price throughout the Peterswald for property office.
*Statistics from CoreLogic
