Hobart house prices have shrunk slightly over the past three months in the majority of areas.
New realestate.com.au quarterly figures show 62 suburbs where the median price fell by between 0.1 and 2.2 per cent.
There were 17 suburbs with gains of 0.1 to 2.6 per cent.
The areas with increasing medians were led by city suburbs Lenah Valley and Mount Stuart.
Lenah Valley’s median rose from $827,000 to $849,000, while Mount Stuart grew from $912,000 to $935,000.
Both suburbs also recorded a year-on-year increase of over 6 per cent.
Penna, Richmond, Midway Point and Sorell were not far behind with 2.1 per cent quarterly growth.
A 2.2 per cent slide in house values was recorded in six neighbouring suburbs: Carlton, Carlton River, Dodges Ferry, Forcett, Lewisham, and Primrose Sands.
Annual figures for these areas all show growth of between 3.7 and 4 per cent.
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Fall Real Estate agent Justin Atkinson described Hobart as a “very steady” market, with buyers moving forward when the property and price are right for them.
He said some buyer demographics have been particularly active.
“Over the past three months, I’ve seen more first homebuyers and downsizers entering the market, along with interstate buyers returning,” he said.
“First homebuyers are adjusting to interest rates and targeting more conservative price ranges to keep repayments comfortable.
“In the stronger suburbs, my view is that buyers are prioritising location, convenience and lifestyle.
“Areas offering these qualities are appealing, although smaller sales volumes can influence quarterly results.”
While larger price falls have been experienced interstate, Greater Hobart’s median has receded just $6000 from the record median home value set in May this year.
Luc Redman, economist at realestate.com.au, said Hobart generally has slower population growth compared to other cities, but “this can fluctuate”.
“Four interest rate hikes this year have put downward pressure on prices, and Hobart has been feeling the effects of this,” he said.
Mr Atkinson said demand plays an important role.
“Demand from these buyer groups — young buyers, downsizers — is helping support the local market,” he said.
“Buyers remain selective, but the activity I’m seeing is encouraging, particularly for well-presented, realistically priced properties.”
Mr Redman said there has been demand for the 5% Deposit Scheme and the 2% government guarantee program in Hobart and throughout the state.
“This was a really strong bring-forward in demand,” he said.
“A lot of people have accessed these opportunities in places like Brighton, which then saw strong growth compared to a couple of years ago.
“The Glebe Hill new homes area near Rokeby is another example of a suburb with significant new home development.”
The report showed twice as many suburbs where there was quarterly growth in median unit prices compared to those where values declined.
Mr Redman said if Hobart increased the number of units and apartments that are available in the city, it would positively affect supply and demand.
“All supply is good supply,” he said.
“If it is an expensive apartment or a social home, the addition of either achieves the same thing — there is a filtering effect where more options are available across the price brackets.”
| SEPTEMBER QUARTER HOME VALUES | |||
| GROWTH | |||
| Suburb | Median value | Quarterly change | Annual change |
| Lenah Valley | $849,000 | 2.6% | 6.3% |
| Mount Stuart | $935,000 | 2.6% | 6.3% |
| Penna | $780,000 | 2.1% | 16.2% |
| Richmond | $911,000 | 2.1% | 16.2% |
| Midway Point | $728,000 | 2.1% | 16.2% |
| Sorell | $747,000 | 2.1% | 16.2% |
| Glenorchy | $683,000 | 1.8% | 15.4% |
| Claremont | $663,000 | 1.0% | 14.6% |
| Sandy Bay | $1,316,000 | 1.0% | -0.3% |
| Gagebrook | $469,000 | 0.7% | 12.7% |
| FALLS | |||
| Carlton | $609,000 | -2.2% | 4.0% |
| Lewisham | $648,000 | -2.2% | 3.9% |
| Forcett | $775,000 | -2.2% | 3.9% |
| Carlton River | $637,000 | -2.2% | 3.7% |
| Dodges Ferry | $594,000 | -2.2% | 3.9% |
| Primrose Sands | $538,000 | -2.2% | 4.0% |
| Mount Rumney | $1,017,000 | -2.0% | -1.8% |
| Cambridge | $974,000 | -2.0% | -1.8% |
| Acton Park | $1,118,000 | -2.0% | -1.8% |
| Lauderdale | $927,000 | -2.0% | -1.8% |
| Source: September quarter house price report by realestate.com.au | |||