The month in review: Hobart

By Herron Todd White
June, 2009

The bottom end of the market continues to perform well throughout Hobart both in volumes and also values. However it appears as if the middle market is relatively soft to average with agents reporting only fair to average levels of enquiry and static property values.

Generally the ‘middle market’ starts at approximately $325,000 and goes to approximately mid $500,000 to $600,000; properties in this price range are found throughout the entire greater Hobart region. There has been some firming of values in the very low end of this
range but overall it appears as if the market has slowed considerably within the last twelve months.

It would be thought that because of the activity in the sub $300,000 bracket being so strong that this middle market would follow suit, but it doesn’t seem to be the case. Many mainland investors are selling their entry level investments as the recession starts to hit home. So
there doesn’t appear to be much significant trading up of properties, thus no value increases.

Many agents are reporting that this market is somewhat difficult to sell at the moment. While all agree the bottom end is strong, many also agree that an asset bubble may actually be in the lower end of the market, making middle market purchasers nervous knowing that values may decline and that volatility is prevalent throughout the entire market.

The majority of purchasers in this price bracket are families. While the local and global economic outlook is poor at present, many people in this middle market appear to want to just ‘sit and wait’ to see what happens in the wide world. This has created a flat market.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270