Real estate investors and home buyers who want a slice of Hobart must act now before properties under $ 700,000 become a thing of the past.
Herron Todd White real estate expert Mark Davies said buyers with a budget of $ 700,000 could buy a home or two a year ago.
"In today's market, you would be hard pressed," Davies said.
"There are currently a plethora of properties for sale at this price point, but many of them are listed as 'over $ XXX' offers, and those listed near the $ 700,000 mark are expected to exceed largely the displayed price. "
The under $ 700,000 market should perform well as borrowing costs remain relatively affordable.
The median home price in Hobart, according to CoreLogic's July Hedonic Home Value Index, rose 1.7% per month to $ 621,102. On an annual basis, Hobart recorded a gain of 21.9%, the second highest after the growth recorded in Darwin.
“Getting anything under $ 700,000 is considered difficult to obtain in the near future,” Mr. Davies said.
The upward trend in prices is expected to continue over the next few months as demand continues to exceed available supply.
Hobart continues to have a low housing count, with total listings declining 37.2% per year in the 28 days leading up to August 8, according to CoreLogic figures.
Additionally, the city has the shortest median days to market for houses (21 days) and units (26 days).
"More and more residential developments are now being vacated and expressions of interest are being offered months before the titles are released," Davies said.
This increased demand, which builders are also experiencing, would ultimately impact construction activity.
"The demand for builders is extremely high with long lead times for the start of construction. Lack of building materials and labor is also having an impact on construction times," said M. Davies.
Where to look for houses in Hobart
There are several suburbs in Hobart that present a good deal for investors and homeowners.
Homes in Claremont, Austins Ferry, Brighton, New Norfolk, Oakdowns, Midway Point and Sorell, for example, have properties under $ 700,000 with good rental yields of around 4.5% at 6%.
"Whether you are looking for single-family homes or units, Hobart is becoming a gangbuster right now and there's no reason it can't continue with high rates. interest at record levels, ”Davies said.
A recent report from the NAB indicated that the affordability of housing in Hobart means there are a lot of suburbs that are actually cheaper to buy than to rent.
Suburbs like Sorell, Howrah, Moonah, and Kingston are all ideal locations for first-time homebuyers looking to break free from the rent cycle.
Top Suburbs:
camper
,
mortdale
,
belmont
,
revesby hts
,
wiley park
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